Goodyear Announces Rationalisation Plans

Goodyear’s Engineered Products and Chemical businesses are to implement rationalisation programmes in order to reduce operational costs, the company has announced. The company will record thirds quarter charges in connection with these rationalisation proposals. The company will record rationalisation charges in the third quarter of 2004 in connection with these actions. Around 100 job losses are also expected to follow in the company’s chemical business.

The company will record a charge of between $23.5 million and $27.5 million for rationalisation in its Engineered Products business. It plans to reduce about 240 positions through these actions by the end of the third quarter of 2005. The company also expects to make future cash expenditures of between $4.5 million and $6.5 million in connection with this action. Additionally, Goodyear plans to reverse between $4 million and $8 million of reserves related to previous Engineered Products programs.

Goodyear expects costs associated with the rationalisation of its Chemical business to total between $5 and $6 million dollars. The company expects to make future cash expenditures of between $2 million and $2.5 million in connection with this action.