Firestone Revenue Climbs, but Net Income Slides 50%
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Firestone Tire & Rubber Co. reported a 50% decline in net income in the first quarter of its fiscal year despite sharply higher operating income.
Firestone said it earned $41 million in the first three months of fiscal 1987, including a $20 million gain on the sale of its North American wheel and rim business.
A year earlier, the Akron, Ohio-based company posted first-quarter net income of $82 million. The 1986 profit includes a $66-million gain from the closing of a pension program and $4 million from discontinued operations.
Revenue for the quarter ended Jan. 31 totaled $846 million, compared to $810 million in the first quarter of 1986.
Firestone said it benefited from lower raw material costs, increased operating rates and cost-reduction programs in its North American tire operations.
The benefits were offset by lower selling prices.
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