**Date:** 4-20-67
**Source:** Unknown
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Net profit of UniRoyal, Inc. declined 2.1 per cent on 1.0 per cent lower sales in the first quarter of 1967, George R. Vila, chairman and president, reported at the company’s annual meeting.
Net profit for the first three months came to $9,549,000, equivalent to 67 cents a share of common stock, compared with $9,752,000, or 69 cents a share in the same period in 1966.
Sales totaled $315,587,000 for the three-month period, compared with $318,886,000 a year ago.
Vila attributed the decline, which started in the latter part of 1966, to higher labor costs, lower automobile assemblies, lower housing starts, higher interest rates and a general leveling off of the economy, particularly in the U.S.A., Canada, Germany and the United Kingdom.
Nearly a quarter of UniRoyal’s output finds its way into new automotive production and about 10 per cent is involved in such home furnishings as carpet yarns, latex carpet backings, Naugahyde upholstery material, foam rubber and plastic compounds for appliances and structural parts, he pointed out.
He indicated that the company’s outlook for the remainder of 1967 was uncertain and depended on trends in automotive and housing industries and economic condition generally at home and abroad.
Referring to the expiration of UniRoyal’s labor contract with the United Rubber Workers Union at midnight tonight, Vila said, “We have high hopes of concluding a mutually satisfac-
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tory agreement.”*
“Looking toward the longer range future,” he said, “We believe there is ample reason to be optimistic. Among the 12 top growth industries for the period up to 1980, Industrial chemicals are listed in the number one position and rubber and plastic products in the number two position. These are areas where we are well placed with excellent products.
“In addition, we have a battery of new products now coming on the market which should enhance our growth in sales and profitability as the years unfold.
“By 1970 or sooner, sales should have passed the $1.5-billion-mark and by 1975 we should be beyond the $2-billion-barrier, with profitability well in advance of our current ratios,” he said.