Strike trims Firestone

Press, 30 May 1985, Page 20

Strike trims Firestone

A strike held the profit increase of Firestone NZ, Ltd, to 7.3 per cent in the six months ended April 30, the company reported yesterday. Tax-paid profit was $3,166,000 after a 22.8 per cent rise in the provision for taxation to $2,389,000. Sales at $47.9 million were 11.4 per cent higher. The company said a fivewfeek factory closure, resulting from a strike by a small section of the workforce, inhibited profitability, but this was offset to some extent by the company’s retreading operations and the services of the retail outlets which continued uninterrupted throughout the strike. The company increased its interim dividend to 9c a share (7cps), which like last

year will be tax-free. It said the interim dividend was increased to ensure all profits capable of tax-free distributions were available to shareholders. But this should not be taken as an indication that the total dividend for the year will increase. Deferred income of $lll,OOO ($92,000) on sale of properties was included in the results. One further property was the subject of unconditional sale and would be included in the profits of the second half. The company said demand for Firestone tyres in both the new car market and replacement market have continued strongly throughout the whole of the first half, but there are some signs of weakening in all markets at present.