Founded in 1898 by Frank Seiberling, The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing company based in Akron, Ohio. It is one of the oldest, biggest and best-known tyremakers in the world. Goodyear makes tyres for automobiles, commercial trucks, light trucks, motorcycles, SUVs, racing cars, aeroplanes, farm equipment and heavy earth-mover machinery. Find all the news and analysis you need relating to Goodyear here.
J.P. Morgan Securities has cut its rating on Goodyear Tire & Rubber to neutral from overweight, citing valuation.
The shares rose 23 per cent in the last month against a three per cent rise in the benchmark S&P 500, the broker noted.
“The now-richer valuation, coupled with less favorable just-released April tyre pricing data, suggests stock could enter range-bound period,” said the company.
Over 200 of Goodyear’s VIP customers, including tyre dealers, wholesalers and trade buyers were recently invited to share in the company’s latest venture. At ‘Magna Science Park’ in Sheffield, an innovative millennium project has been created in the former steelworks as a showcase of science and technology. For three days, the huge site was transformed into a three-dimensional brand experience, giving the company the perfect platform from which to promote the repositioned Goodyear brand.
(Akron/Tire Review) Joseph Copeland, senior vice president of business development, strategy and restructuring, for Goodyear Tire & Rubber Co has been named CEO of Goodyear’s South Pacific Tyres subsidiary. Goodyear owns a 50 per cent share in the Australian joint venture. Mr Copeland will report to the South Pacific Tyres board of directors, as well as to Pierre Cohade, president of Goodyear’s Asia/Pacific tire business.
Darren Wells, Goodyear’s vice president and treasurer, was promoted to senior vice president of business development and treasurer, reporting to Richard Kramer, executive vice president and CFO. Mr Wells will assume Joseph Copeland’s business development responsibilities as well as additional oversight responsibilities for the investor relations and tax functions.
(Akron/Tire Review) Goodyear Tire & Rubber Co continued posting positive results as its first quarter 2005, earning $68 million in profit against record first quarter sales of $4.8 billion.
The Akron Beacon Journal described the results as a “financial home run,” adding they greatly exceeded estimates from Wall Street analysts. The market watchers had thought Goodyear would earn 1 to 3 cents a share for the quarter ending 31 March. Analysts’ high estimate was 10 cents a share, with the lowest a loss of 2 cents. In fact the profits equated to 35 cents a share.
(Akron/Tire Review) The Goodyear Tire & Rubber Co has filed a request in Ohio’s Summit County Common Pleas Court for an injunction to stop a former tyre development employee from working for a competiting manufacturer.
Christopher A Raglin, former tyre development engineer at Goodyear, left the company on 13 April and then took at job with Cooper Tire & Rubber Co in Findlay, Ohio. In Goodyear’s complaint, the company said Mr Raglin helped develop its Assurance tyre, had access to details about Goodyear’s tyre technology and participated in high-level product planning meetings.
Following Stephen Myers’ decision to step down, John C Orr has been promoted to CEO of plastic, rubber products company Myers Industries in Akron, Ohio. According to reports the board did not waste any time in appointing Mr Orr, the company’s 54-year-old president and chief operating officer, as CEO.
JP Morgan analysts have changed Goodyear’s share rating from “neutral” to “overweight,” while raising their estimates for the company. The analysts mentioned that the company’s share price has depreciated by 22 per cent year-to-date, creating an attractive investment opportunity. According to the analysts Goodyear is likely to benefit from moderating raw material costs in the short term and a healthy pricing environment globally. JP Morgan raised earnings per share estimates for 2005 and 2006 from $0.65 to $0.80 and $0.75 to $0.90 respectively.
(Akron/Tire Review) Titan International Inc has reported record first-quarter net income of $11.2 million, up 111 per cent from last year’s first quarter. Net sales were $136.1 million for the first quarter, ended 31 March and gross profit was $24 million. Basic earnings per share also set a record at $0.68 for the quarter, the company said. Classified by segment, revenues were $89 million for agricultural, $39 million for earthmoving/construction and $7.5 million for consumer.
Goodyear Tire & Rubber Company has re-elected Gary Forsee, Denise Morrison, Thomas Weidemeyer, John Breen and William Hudson Jr to the company’s board of directors. Forsee, Morrison and Weidemeyer were elected to terms expiring in 2008, while Breen and Hudson were elected to terms expiring in 2006. The company’s other directors are James Boland, Robert Keegan, Steven Minter, Rodney O’Neal and Shirley Peterson.
At the same time as the board members were elected, shareholders failed to approve an amendment to the company’s code of regulations that would have required the annual election of directors, and a shareholder proposal regarding executive compensation failed to receive a majority of votes.
General Motors has awarded Continental Automotive Systems and Goodyear with supplier awards. GM gave the 2004 “Supplier of the Year Award for Tyres” to Goodyear in a ceremony held at GM’s vehicle engineering centre in Warren, Michigan. GM’s vice president of global purchasing and supply chain, Bo Andersson, noted: “Only suppliers that drive to be world class and exceed GM’s expectation in quality, service, technology and price win this award.” This year, fewer than 80 suppliers were selected for a top supplier award from GM.
(Akron/Tire Review) The Goodyear Tire & Rubber Co has announced it will receive $22 million as part of an insurance settlement for asbestos- and pollution-related claims it had filed. The $22 million, part of a settlement agreed upon 13 April, will be paid by Lloyd’s Underwriters and reinsured by Equitas Limited in the second quarter of 2005.
Goodyear is “more or less on track…to come in around breakeven” during the first quarter of 2005, Deutsche Bank analysts have reported. The analysts went on to say that they foresee a modest profit ($0.05 per share) in the second quarter, while maintaining their $10 target sell rating. The market watchers suggest that Goodyear’s new $3.2 billion credit facility ($2 billion of which has already been used) has “bought the company enough time to turn its tyre business around. However, there was caution. The analysts warned that competition from America and Eastern Europe present challenges for the company, as do declining military revenues and lower auto production levels. In addition, competitors appear to be outpacing Goodyear’s efforts to shift to low cost markets, they concluded.
(Akron/Tire Review) Marangoni Tread North America has named retreading industry veteran Donald Rizzi as its new national sales manager.
Prior to joining Marangoni, Rizzi was regional manager for Goodyear’s retread systems business, regional manager for Goodyear Commercial Tire Systems, and a Six Sigma project manager for Goodyear. Through his career, Rizzi held sales management positions with Long Mile Rubber Co., Oliver Rubber Co. and Ultima Rubber Products.
“We are very pleased that Don has joined us,” said Bill Sweatman, Marangoni Tread North America president. “Our business continues to grow at a rapid rate and Don will not only help us to keep that momentum going but will improve our representation and service to our valued customers, our independent dealer network.”
(Akron/Tire Review) News reports say that a contract worker at Goodyear Tire & Rubber Co.’s plant in Lawton, Okla., was found dead on 10 April, with part of his body wedged between the spools of a rubber calendar. As of Monday, Lawton law enforcement authorities were trying to determine if the man died as a result of being trapped in the machine, or if he suffered a heart attack or other illness and fell into the equipment.
The unidentified man was employed by a temporary employment agency that provides workers to the facility, said reports. According to news sources it was the first fatality ever for the plant.
Dr. Rainer Schieben (42), managing director of Goodyear GmbH & Co. KG, the German distribution leg of the tyre manufacturer, has left the company “by his own decision,” writes Goodyear Germany in a press release.
During the 10 years Dr. Schieben worked for the Goodyear-Dunlop group, he has held several executive positions. He took up the position of managing director as of June 2001. Gerd Grünenwald, chairman of the managing board of Goodyear Dunlop Tires Germany GmbH, and Dr. Schieben’s superior, praised the former managing director as somebody who has delivered “a positive contribution” to the success of the organisation.
A successor will be proclaimed soon, according to Goodyear’s press release.
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