AKRON, Ohio, Aug. 19 /PRNewswire-FirstCall/ -- In a move to improve the profitability of its U.S. retail operations, The Goodyear Tire & Rubber Company today said it plans to exit 92 underperforming locations by the end of the year.
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"Following a rigorous review of operating performance and local market dynamics, these company-owned outlets are not producing acceptable returns," said Scott Vogel, vice president, retail operations, North American Tire.
"Taking this action now will allow us to focus our attention on locations with the best long-term potential," he said. "It will help position Goodyear to be a stronger competitor."
Vogel said the company is not announcing the store locations impacted due to its desire to first communicate with their approximately 500 full-time and 100 part-time associates as well as property owners of leased facilities.
The action will result in after-tax charges of approximately $30 million, of which $15 million will be recorded in the third quarter of 2008. In addition to the strategic benefits associated with it, the action is expected to eliminate losses related to these locations of approximately $9 million annually.
Goodyear is one of the world's largest tire companies. It employs about 70,000 people and manufactures its products in more than 60 facilities in 25 countries around the world. For more information about Goodyear, go to http://www.goodyear.com/corporate .
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, including those statements regarding the expected amounts of charges and impact on net income (loss) resulting from the plan to exit the retail locations. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof. There are a variety of factors, many of which are beyond our control, which could affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to the risks and other factors described in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent management's estimates only as of today and should not be relied upon as representing management's 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 management's estimates change.
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