The Akron Beacon Journal from Akron, Ohio • Page 11

Tuesday, October 6, 1981 BUSINESS irestone Haw causin D6 Akron Beacon Journal hunt Mews in brief defec in Memo his plant tires The Memphis newspaper reported that workers continued to receive their pay while out of work. The heavy duty bias truck tires are worth hundreds of dollars each on the retail market. OFFICIALS at United Rubber Workers Local 186 refused to comment Monday on what was happening at the facility. Workers at the 44-year-old plant approved contract changes late last year to help cut production costs. At one time, it was thought the Memphis plant and Firestone's Akron Plant 1 were in competition for the bias truck tire production, with the loser facing a shutdown.

Akron Plant 1 closed this year. By Doug Oplinger Beacon Journal business writer Firestone engineers are attempting to determine the cause of defective tire production at the company's bias truck tire plant in Memphis, Tenn. Mike Connor, a company spokesman in Akron, said the company is not sure how long the plant was producing the defective tires, nor what caused the problem. "We don't know if it was a day, or several days," Connor said. He did say, however, that none of the suspect tires made it to the market.

They were all in inventory, either at the plant or on trucks. A PLANT official was quoted Sunday as saying the bad produc- The newspaper also quoted a source as saying the problem occurred shortly after the company acquired a new source for one of the resins. Connor said the problem was not immediately discovered because it was not obvious from visual inspections. When more thorough quality control inspections were made of the interior of the tires, flaws were discovered. WHEN the problem was first discovered a week ago today, production was halted for three days, according to plant spokesman Nick Pinter.

Pinter said there are about hourly workers operating the plant 24 hours a day. Hoover adds 50 jobs at new Akron facility The Hoover Co. said it is opening a new warehouse on Gilchrist Road in Akron, thus expanding its distribution facilities and adding 50 employees. A company spokesman at the North Canton-based appliance manufacturer said the facility is already open and merchandise is being moved into the warehouse, owned by the Fred W. Albrecht Grocery Co.

When the distribution center is in full operation in a few months, it will employ about 50 persons and be among the company's largest warehouses. Hoover currently operates its largest distribution center at its plant in North Canton. The company manufactures all of its domestic products in Stark County. The Gilchrist Road warehouse was formerly occupied by the Seiberling Tire which ceased operations in 1980. HEADLINES T-BILL INTEREST FALLS: on short-term Treasury securities fell for the third time in four weeks Monday in the weekly auctions.

About $4.5 billion in six-month bills were old at a rate of 14.218 percent, down from 14.932 percent of last week. Also sold were $4.5 billion in three-month bills at a yield of 14.206 percent, down from 14.669 percent. Starting today, banks and savings and loans may pay 14.468 percent on their six-month savings certificates, down from 15.182 percent. MARKET LOSES SLIGHTLY: The Dow Jones industrial average, up more than 8 points at the outset, was off 0.86 at 859.87 by the close. Volume on the New York Stock Exchange totaled 51.29 million shares.

The NYSE composite index rose 0.14 to 69.00. SEARS ACQUIRES BROKERAGE: Sears, Roebuck and Co. said Monday it is entering the brokerage business by taking over Coldwell, Banker the nation's largest independent commercial and residential real estate broker in an estimated $179 million deal. Officials said directors of both firms have approved the acquisition in principle. PRIME RATE FALLS: Banks nationwide dropped their prime rates to 19 percent Monday as some economists predicted a fall to 18 percent.

Analysts attributed the drop in the prime to its lowest level in five months to a decline in the banks' cost of funds and the impact of a weakening economy. MEETINGS The Akron Cascade chapter of the National Association of Accountants will meet at 6 p.m. Oct. 13 at the Brown Derby restaurant on Waterloo Road. Call Dante Tropea at 796-1047 for reservations.

The AkronCanton chapter of the American Marketing Association will meet at 6:30 p.m. Oct. 14 at the Tangier Restaurant. Alec Berger, vice president of marketing with Economic Information Systems Inc. of New York, will speak on industrial marketing.

For reservations, call 374-3770 or 489-4819. Vv tion could affect as many as tires, and a union source said the company indicated the cost could go as high as $13 million. However, another company spokesman said late Monday that the initial number of suspect tires was about 239,000, and about were "unfrozen" following a number of tests. The tires were passing load tests, but flaws were being discovered in later inspections, the firm said. THE MEMPHIS Commercial Appeal newspaper quoted a plant spokesman as saying the problem may have resulted from the use of a defective resin, one of many ingredients in compounds used to make a tire.

925,877 cars from 4,913,735 cars sold in the first nine months of 1980. Because there was one additional selling day in the Jan. 1-Sept. 30 selling period last year, the percentage comparison is based on the rate of sales per day. CHRYSLER has made the strongest year-to-year improvement in the first nine months with sales of 579,825 cars up 22.5 ii i I- 1 movable arm company also Checking the unit is employee Beacon Journal photo by Don Roese on America's Space Shuttle.

The produces large steel bearings. diameter on the bolt circle on this Harry Friedman. ALUMINUM BEARINGS produced by Rotek Inc. in Aurora are used In increasing numbers to reduce the weight of equipment such as military tanks and guns. One such bearing was manufactured for the U.S.

auto sales climbed 6.7 in September Ford Motor tops all Big Three companies with a 24.1 increase First Natl, earnings rise 10 The First National Bank of Akron reported Monday that earnings continued to climb through the third quarter, despite record high interest costs. First National, the state's largest independent bank, said quarterly income of $3 million, or $1.36 a share, was up 10.3 percent from $2.7 million, or $1.23 a share, in the same period last year. In the first nine months, earnings climbed 11.7 percent, from $7.5 million to $8.3 million. Earnings per share went from $3.40 to $3.80. THE BANK, which has plans to merge with the Old Phoenix National Bank in Medina, said percentage gains fell slightly from the first and second quarters because of escalating costs.

President and chief executive John R. Guinter said continued increases are expected in the fourth quarter as passbook savings account rates are increased from 5J to 5 percent (Nov. 1) and the All-Savers certificates are added (paying 12.14 percent tax-free on up to Guinter said interest paid on Money Market Certificates cost the bank as much as 6 percent more than in the third quarter of 1980, while interest costs on large certificates ($100,000 and more) were up 7 percent. "EARNINGS for the balance of the year should be at satisfactory levels, but as indicated, some further squeeze on margins might be anticipated," Guinter said. He said the bank will call a special shareholders meeting before the end of the year to consider the merger with Old Phoenix.

The Federal Reserve Board has approved the merger application and the Justice Department is considering the matter. Member FDIC The Good Listeners selling 117,372 cars against in the same month last year, while General Motors sales of 326,089 cars were up 2.7 percent irom sales of 317,450 cars in the 1980 month. At Chrysler September sales were up 3.6 percent to from last year's 46,708. American Motors mean- while, sold 12,296 cars for the month, down 9.4 percent from last year's 13,565, and Volkswagen of America sold 14,381 cars, Associated Press DETROIT Boosted by rebates and other incentives for most of the month, car sales by U. S.

automakers rose 6.7 percent in September from the same month a year ago, according to company reports Monday. The five major domestic automakers sold 518,522 cars for the month compared with 485,742 in September 1980. Ford Motor Co. reported a 24.1 percent increase for the month, percent from 475,307 last year. Ford sales are up 1.6 percent for the period to 1,097,158 from 1,084,429 a year ago.

GM sales are down 2.3 percent for the year with sales of cars compared to last year's 3,096,110 cars. AMC sales are down 3 percent to 109,875 from 114,107, while sales at VW are down 11.4 percent for the year, to 126,664 from 143,782. (Q Hudson group buys Canton Drop Forge up 6.7 percent from 13,479. EACH OF the automakers, except VW, had some rebate or sales incentive program in effect through the first 23 days of the month. The last third of the month featured introductions of 1982 models by most automakers.

Sales of imported makes were down 10 percent in September, to 166,724 cars from last year's 185,243. For the year, sales of domestic makes are up 0.7 percent to 'Our new one-year $500 deposit and $2,000 if you file a annual yield Oct. 5-Oct. 31, 1981 at maturity is available with a minimum to 1,000 if you file an individual return; The other plant is at 1200 Housel Ave. S.E.

Cordier said the purchasing group includes two prominent Wall Street investors "who must remain unnamed." Others are Thomas H. Corson, founder and chairman of Coachmen Industries in Middlebury, and James J. O'Sullivan president of the Metal Parts and Equipment Co. in Northbrook, HI. Cordier said O'Sullivan's group has represented Drop Forge for 38 years.

CAVENDER, who had served as Drop Forge president since 1970, will be used as a part-time consultant. Other officers remaining with the company are William F. Brauchler, vice president of manufacturing; J. Richard Halter, vice president of sales; and Robert H. Swallen, vice president and treasurer who will become chief financial officer.

Cordier, a Hudson resident, said the sale was closed Sept. 29 in New York after negotiations that lasted several months. The Cordier Group was incorporated early this year, he said. The sale is not expected to affect employment levels "unless there is a future expansion of our production," Cordier said. He said Drop Forge, family-owned for most of its existence, was sold because of the more recent owners' need for cash.

By James Toms Beacon Journal business editor The Canton Drop Forging and Manufacturing a 78-year-old Stark County firm with some 500 employees, has been purchased by a Hudson-based investment company The Cordier Group Inc. William K. Cordier, who has been elected chairman and president of the reorganized board, said Monday he could not reveal the purchase price. But he said proceeds from the sale will be distributed to about 90 Canton Drop Forge stockholders, including former chairman Chandis H. Brauchler and former president Carl F.

Cavender. Canton Drop Forge, which produces medium-to-heavy forgings from steel and non-ferrous metals, had sales last year of about $40 million, Cordier said. Drop Forge products are used in the off-highway, power generation, aerospace, diesel locomotive and oil field service industries. CORDIER, 54, a former vice president and group executive at B. F.

Goodrich, said his investment group does not plan any major changes at Drop Forge. However, he said officials hope to "find the means to expand our product lines to serve our existing customers." Canton Drop Forge has two plants, with the main facility and offices at 4575 Southway St. S.W. IS IT FOR YOU? Depending on your tax bracket, financial goals, and individual situation, the All Savers Certificate could provide a variety of benefits for you. Talk with the customer service representative or manager at any Firestone Bank office for more information.

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