Goodyear Tire & Rubber Announces Cost Savings Actions; Q4 Results Fell Short Of Its Expectations

The Goodyear Tire & Rubber Company (GT) announced rationalization and workforce reorganization which would result in an approximately 5% reduction in salaried staff globally, or about 500 positions. The company expects to record pre-tax charges associated with these actions of approximately $55 million. The rationalization and reorganization will result in a quarterly run-rate benefit of approximately $15 million beginning in the second quarter. Savings in the first quarter are expected to be $5 million.

The company said Global replacement tire industry demand remained weak in the fourth quarter, led by a 12% decline in EMEA. The company expects its EMEA business unit to report a fourth-quarter segment operating loss of approximately $80 million.

"Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe," said Richard Kramer, CEO.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Ford Motor Co. has once again raised the price of its popular F-150 Lightning electric pickup truck after the automaker resumed its production that was halted following electric vehicle battery fire incident. The company will also resume shipments of the Lightning this week, reports said. Paducah, Kentucky-based Higdon Outdoors LLC is recalling certain battery packs and replacement batteries citing fire and/or burn hazards, the U.S. Consumer Product Safety Commission said. The recall includes lithium-ion battery packs and replacement batteries on XS Series Pulsators, Swimmers, Crazy Kicker, and Flasher motion decoys used for waterfowl hunting. New York-based Delta Enterprise Corp. is recalling about 43,380 units of 2-in-1 outdoor kids swings citing fall hazard, the U.S. Consumer Product Safety Commission said. This recall involves 2-in-1 Outdoor Kids Swing with model numbers SW86508MM, SW86516MN, SW86575MM, SW86576MN and SW86577PW.
Follow RTT