Goodyear Initiates Cost Reduction Actions in Europe
AKRON, Ohio, June 28 -- The Goodyear Tire & Rubber Company today announced restructuring actions in its European Union business unit that are expected to eliminate more than 150 positions and create annual savings in selling, administrative and general expenses in excess of $10 million.
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"Concurrent with efforts to grow our top line through innovative new products and marketing, we are intensely focused on reducing the company's global cost structure," said Goodyear Chairman and Chief Executive Officer Robert J. Keegan. "Our objective is to achieve cost reductions totaling between $750 million and $1 billion by 2008, including $150 million to $200 million in SAG costs."
Today's announcement involves cost reduction actions in selling, administrative and logistic areas that are expected to result in total restructuring charges of approximately $20 million ($15 million after tax), all cash-related.
Goodyear is one of the world's leading tire companies. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries around the world. Goodyear employs about 80,000 people worldwide. For more information on Goodyear, go to http://www.goodyear.com/ .
Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements. There are a variety of factors, many of which are beyond the company's control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to, actions and initiatives taken by both current and potential competitors, increases in the prices paid for raw materials and energy, the company's ability to realize anticipated savings and operational benefits from its cost reduction initiatives, potential adverse consequences of litigation involving the company, pension plan funding obligations, the company's collective bargaining negotiations with the United Steelworkers as well as the effects of more general factors such as changes in general market or economic conditions or in legislation, regulation or public policy. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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