Goodyear to End Jamaican Operations

Goodyear Jamaica Limited has decided to call it quits after some 40 years. Tropical Battery, whom the Goodyear subsidiary appointed Jamaican distributor of the brand in August, will continue in this role following the wind up of the national operation.

The Goodyear subsidiary, which ceased the local manufacture of tyres some 11 years ago, has faced an uphill battle of late. A 65 per cent dip in profits during 2006 was followed on January 10, 2007 by a fire that badly damaged the company’s distribution centre in St Andrew. And although Goodyear Jamaica reported in July 2007 that inventory was again at 95 per cent its pre-fire level, and that the company intended to double its sales, equity in the company is today valued at $467.9 million (£4.1 million), down from $471 million at December 2007. Its stock market value as at Tuesday was $178.2 million (£1.6 million).

Goodyear Jamaica General manager Steven Miller, citing disclosure rules, has not at this time disclosed the company’s winding up plans in great detail: “At the extraordinary general meeting, shareholders will vote on a resolution to liquidate Goodyear Jamaica Limited’s assets,” he said. “Once the requisite number or percentage of shareholders vote in favour of liquidation, the business of the company changes and a liquidator is named who will collect all moneys owed to the company and pay off all debts owed by the company and distribute the remainder to the shareholders.”

Miller gave no specific reason for seeking voluntary liquidation, but Goodyear has been faced with year-over-year decrease in profits. Within the current period, year to date September, expenses have ballooned, while sales have largely been flat. Revenue in the third quarter dropped off by 10 per cent.