Goodyear Challenges “Belly Up” Statement

Quoted in an article in Tire Business, Dr. Dennis Byrne, Professor Emeritus of economics, said during the Clemson University Tire Conference that Goodyear would be forced to file for Chapter 11, saying: “I see very little reason for optimism, I think they will go belly up.” This provoked a spirited response from Goodyear, who said that, while Dr.

Byrne might live in the Akron area, he has no special insights or knowledge of the company and he has not taken into account the measures taken by Goodyear to achieve a turnaround. His assertions are off the mark, said the company in a statement. This is reminiscent of the statements issued when columnist Diane Evans criticised Sam Gibara in the pages of the Akron Beacon Journal.

Goodyear said then that Evans ignored any facts that did not fit in with her ideas. On the other hand, it is a fact that a year ago, DB Global Equities recommended Goodyear shares as a “strong buy” with a target price of $36. Today the price is $4.

Time will show whether it is Dr. Byrne or Goodyear who is right..