Chairman Sees Great Prospects
For Business, Both At Home, Abroad
★ ★ ★
Stockholders Meet, Hear Report on 1959-60
The company’s business has great possibilities for increased sales
and profits during the Sixties both at home and abroad, Chairman Harvey
S. Firestone, Jr., said in his report to stockholders at their annual meeting
at the home offices in Akron on January 21.
President Raymond C. Firestone gave the report in the absence of
Mr. Firestone, Jr., who was ill with a virus infection. Vice Chairman
Lee R. Jackson presided.
The meeting was marked by the retirement of John J. Shea as a
director. The stockholders re-elected the 10 other directors: Harvey S.
Firestone, Jr., Mr. Jackson, Raymond C. Firestone, James E. Trainer,
Harvey H. Hollinger, Leonard K. Firestone, Roger S. Firestone, Joseph
Thomas, Elton H. Schulenberg and Earl B. Hathaway.
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AT A MEETING OF THE BOARD of directors which followed the
stockholders’ meeting, the retirement of Mr. Jackson as vice chairman
was announced. Mr. Jackson served as president of the company from
1948 to 1957 and as vice chairman from 1957 to his present retirement.
He will continue as a director and serve as executive consultant for
the company, and will remain on the executive and other important
committees.
It was also announced that Claude A. Pauley was promoted from
comptroller to the newly created post of administrative director of insur
ance, pensions and salary compensation; Lee R. Shannon, formerly assist
ant comptroller, becomes comptroller; and Reid J. Montgomery, formerly
manager, budget department, was promoted to assistant comptroller.
The directors re-elected the other incumbent officers, including:
Harvey S. Firestone, Jr., chairman; Raymond C. Firestone, president;
Mr. Trainer, executive vice president; Mr. Schulenberg, vice president
and treasurer; Mr. Thomas, vice president and secretary; Mr. Hathaway,
Joseph A. Meek, Louis J. Campbell and Herbert H. Wiedenmann, vice
presidents; John F. Floberg, general counsel; Elden H. Eaton and Robert
P. Beasley, assistant treasurers; Henry S. Brainard and Byron H. Larabee,
assistant secretaries; and John K. Smucker, assistant comptroller.
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FIRESTONE CELEBRATED its 60th anniversary in 1960 with
record sales and profits for the second straight year, and sales exceeded
a billion dollars for the sixth consecutive time.
The company reported $1,207,247,997 in net sales and $65,029,463
in net income in the fiscal year which ended last October 31. These
compared with sales of $1,187,784,024 and earnings of $64,596,848 in
the previous fiscal year.
“We have confidence in the future of our country and in the future
of our company, and with good reason, since all signs point to a long-
range period of progress and prosperity for many years to come,”
Chairman Harvey S. Firestone, Jr., said in his report.
★
THE YEARLY RE
PORT of Harvey S.
Firestone, Jr., chairman
and chief executive of
ficer, was given to stock
holders attending their
annual meeting in Akron,
January 21. Raymond C.
Firestone made the re
port in the absence of Mr.
Firestone, Jr., who was
ill with a virus infection.
The retirement of John J.
Shea as a director was
announced at the meet
ing. He is pictured with
the other directors who
were re-elected: (left to
right) Mr. Shea, Harvey
H. Hollinger, Elton H.
Schulenberg, Joseph
Thomas, Lee R. Jackson,
Raymond C. Firestone,
James E. Trainer, Roger
S. Firestone and Earl B.
Hathaway. Directors not
pictured are Harvey S.
Firestone, Jr., and
Leonard K. Firestone.
★
The complete text of the report, given by President Raymond C.
Firestone, follows:
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YOU HAVE before you a copy of our annual report for the fiscal
year ended October 31, 1960, and you also have heard the treasurer’s
report. I would like to emphasize that we celebrated the sixtieth anni
versary of the founding of our Company with the largest volume of both
sales and profits in our history and that this was the sixth consecutive
year in which our sales exceeded one billion dollars. But other than that,
I shall not take the time to repeat the contents of those reports. Instead,
I would like to tell you about some of our activities which will, I feel
certain, make important contributions to the future progress of the
Firestone organization.
As you know, the standards of living have been raised substantially
in many countries of the world, principally through American assistance
programs. As a result, more people now own automobiles in those nations,
as evidenced by the fact that while the demand for rubber in the United
States decreased slightly in 1960 from the previous year, world consump
tion of rubber was the highest in history. Furthermore, the growth in
car ownership abroad seems destined to continue for many years to come.
Consequently, the market for tires outside of the United States has
increased in importance during the past several years and the future
potential appears most promising. To take advantage of the opportunities
for sales and profits in these markets, we have accelerated the expansion
of our manufacturing facilities in some countries and established new
plants in others.
During the past fiscal year, our expenditures for new plants and for
additions and improvements to existing plants and equipment amounted
to nearly $83,000,000, a substantial part of which was spent on our
foreign facilities. However, we have been keenly aware of the necessity
for conserving United States gold reserves and, wherever possible, we
have paid for this expansion program with accumulated earnings in
local currencies.
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OUR NEW TIRE PLANT at Calgary, Alberta, Canada, was built
to serve the fast-growing western Canadian markets. Our new tire plant
which is nearing completion at Bethune, France, and our new synthetic
rubber plant which is under construction at Port Jerome, France, are
strategically located to take full advantage of sales and profit oppor
tunities in the European Common Market. In association with local
businessmen in India, we are building plants for the manufacture of
butadiene, styrene and synthetic rubber at Bareilly, India. In addition,
programs of expansion and modernization are continuing in our other
foreign factories.