The Companies: Two in Pursuit Of a Turnaround

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But Price's narrower vision is starting to produce what Control Data needs most at the moment: profits. The company is now more focused on what it knows best, computers, just in time to take advantage of an upturn in that business. Indeed, analysts expect Control Data to show a profit as high as $80 million for 1987, compared with a loss of $264.5 million last year.

A TIREMAKER LAGS

Back in 1980, years before restructuring was a corporate buzz word, Firestone was practically inventing the idea. Unfortunately, the company is still working at it. Of Firestone's 17 North American tire plants, it has closed nine and sold another; the company has also slashed its payroll from 107,000 workers to 55,000. Yet the tiremaker's financial comeback remains around the corner. During fiscal 1986, which ended in October, Firestone posted $3.5 billion in sales but managed to earn only $3 million from its continuing operations. The company's chairman, John Nevin, admits that restructuring has ( an element of trial and error. Says he: "Have we done some things wrong? You bet your life we did."

When Nevin arrived at the company in late 1979 from the chairman's job at Zenith, Akron-based Firestone was reeling under more than $1 billion in debt and an image problem in its most basic business. The company had been forced to recall some 9 million of its 500-model steel-belted radial tires because of alleged widespread defects. Nevin's strategy was to return Firestone's focus to tiremaking by spinning off distracting subsidiaries. He sold eleven businesses that manufactured dozens of items, from seat belts to beer kegs. Such products now constitute only 9% of the company's sales, down from 26% in 1979.

But difficult conditions in the tire market have given Firestone poor traction for making progress. The market has not only grown smaller -- the result of today's long-lasting radial tires -- but more competitive. Prices have fallen because of rising production by foreign rivals, notably France's Michelin and Japan's Bridgestone. At the same time, Goodyear and other U.S. rubber giants are also revamping themselves and boosting their commitment to tiremaking.

So far, Firestone's restructuring, while reducing its debt load, has failed to improve its standing in the market. The company's sales have shrunk by one- third since 1979, and its position in the worldwide business has fallen from No. 2 to No. 3. Firestone can only hope that as the first to slim down, it may also be the first to enjoy fully the benefits of greater efficiency and lower costs. Says Nevin: "The pruning we've done is pretty severe, but this company is beginning to grow again."