ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Better Performance despite Excess Capacity

Better Performance despite Excess Capacity Hansavivek GOODYEAR INDIA has barely maintained dividend at 6 per cent, despite better performance. It was able to sell the entire output in spite of the competitiveness in the market due to excess capacity in the industry. Sales increased from Rs 37.60 crores to Rs 45.39 crores and the outcome was a gross profit of Rs 367 lakhs against only Rs 79 lakhs previously. After necessary provisions, there was a net profit of Rs 76 lakhs compared to a net loss of Rs 45 lakhs previously. While last year's dividend came from past reserves, this year's payment is covered by earnings nearly 1.5 times. The company's exports declined from Rs 2.91 crores to Rs 2.15 crores, due to loss of Turkey as an export market, because of foreign exchange difficulties, and increased competition in international markets in general. Labour relations were strained throughout last year. Towards the end of the year, the company experienced a series of slowdowns in various production and service departments at the factory. This was followed by a tool-down strike. After seven days, the management declared a lock-out which lasted until March 22, 1979. Production was resumed from March 30.

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