Goodyear: We are exploring the sale of our Engineered Products business
Goodyear Tire & Rubber Co. says it is exploring the sale of its Engineered Products business. The company has engaged J.P. Morgan Securities Inc. and Goldman, Sachs & Co. as financial advisors.
"While Engineered Products is performing well, it is a non-core operation for Goodyear," says Goodyear Chairman, CEO and President Bob Keegan. "As we continue to build on the considerable progress we have made in recent years, we believe the best course of action is to focus all of our resources on the growth of our core consumer and commercial tire businesses.
"We will consider the sale of the business to a buyer that will recognize the considerable value of the business and its associates while maintaining Goodyear's level of service to customers."
Tim Toppen, president of the Engineered Products operation, says the decision to explore a sale of the business would not interfere with its focus on daily operations and meeting customer needs.
"The cornerstone of our operating philosophy stays intact -- we want to help our customers grow their businesses for the long-term."
Engineered Products achieved year-over-year growth in both sales and earnings in 2002, 2003 and 2004. In 2004, the business had sales of approximately $1.5 billion and segment operating income of $113 million.
It manufactures and markets engineered rubber products for industrial, military, consumer and transportation original equipment end-users. The product portfolio of the business includes hoses, conveyor belts, power transmission products, molded products and air springs.
Engineered Products operates 30 facilities worldwide and has approximately 7,000 associates.
Goodyear's stock price on the New York Stock Exchange closed at $15.88 on Monday, Sept. 19. That compares to a 52-week high and low of $18.59 and $9.15, respectively.