COULD be a continuing problem.
As to the GY rating........
The snow rating is obviously bogus.
The rest.........
Well, if you can find a better tire, buy it.
But you can't.
Homer
Goodyear to cut costs up to $1 billion
Company will close plants and import more materials from Asia to offset high raw materials costs.
September 23, 2005: 12:25 PM EDT
Goodyear (Research), the largest U.S. tire maker, said it would cut costs by $750 million to $1 billion over the next three years, taking cash charges of $150 million to $350 million for the restructuring, which will include selling more noncore assets.
"Our turnaround is on track and will continue to evolve," Chief Executive Robert Keegan said in a statement.
Goodyear expects to cut high-cost manufacturing capacity by 8 percent to 12 percent to generate savings of about $100 million to $150 million per year. It did not say how many plants it would close or where they are located.
After a rough 2002 and 2003, Goodyear has been working to turn around its business by focusing on products, dealer relations, cost-cutting and investments in more profitable areas of its business. That helped the Akron, Ohio-based company improve its North American operations in the last two years.
Goodyear reported a profit in 2004 after losses totaling more than $2 billion over the previous two years sparked a previous cost cutting plan of plant closings, job cuts and debt reduction.
But raw material costs are increasing, and the company is facing high pension obligations and debt levels, it said. Rising oil prices in particular have inflated the cost of synthetic rubber and of operating plants and shipping products. Steel prices and natural rubber costs are also up.
Goodyear has sold a resins business and an Indonesian rubber plantation, and the sale of its North American farm tire business is pending. Earlier this week Goodyear said it would consider selling its engineered products business.
Goodyear said it wants to improve segment operating margin to 8 percent for the total company and 5 percent for its key North American Tire unit. In the second quarter, only two smaller units met that overall standard and the North American Tire unit had an operating margin of 2.4 percent.
Goodyear said it is still assessing the impact of Hurricane Katrina on property, inventory and overall operations. Five retail stores are likely to stay closed indefinitely, but the company does not see a material effect from those closings.
Goodyear shares fell 3 cents to $14.97 in light premarket trading on the Inet electronic brokerage network.
