Firestone down

Press, 16 December 1988, Page 19

Firestone down

Firestone New Zealand, the Christchurch-based tyre maker, reports a large fall in profits for the year ended October 31. Before-tax profit for the year was 68.5 per cent down on the previous year at $3,096,000 ($9,053,000 previously). After-tax profit, at $2,003,000, is 63 per cent down (previously $5,424,000). Sales are down only 8.6 per cent at $102,774,000 ($112,530,000). An extraordinary item of $1,204,000 takes the bottomline profit for the year to $3,207,000, which is 40 per cent down on the previous

year’s $5,424,000. Depreciation is $2.577M, compared with $2.510M. The chairman, Mr J. L. Kipling, said the combination of deteriorating economic conditions, relaxed controls on imports for new and used vehicles and tyres, and reduced import tariffs for both industries had led to decreased volumes and decreased prices in local tyre markets. But the company had at least retained its market share in all markets and made gains in some segments. “In the longer term, the combined strength of Bridge-

stone and Firestone, following the merger of the two companies world wide in May, will lead to even greater benefits in the New Zealand and Australian markets.” The company said wage rises were held at a responsible level, with a landmark wage contract negotiated with employees that is for a three year period. The agreement allowed for payments for increased productivity. Firestone said the potential exists for it to provide continued employment for a large majority of its employees.