Goodyear revises Q3 earnings outlook due to recent events
Goodyear Tire & Rubber Co. has revised its earnings projections for the third quarter of 2001 "based on already weak markets, which were further disrupted by the Sept. 11 terrorist attacks in the United States," according to a company statement.
The tiremaker says it expects Q3 net income will "approximate" the second quarter of 2001's five cents per diluted share, vs. 11 cents per share for the third quarter of 2000.
"Our business, like many, saw an abrupt decline in demand after the attack," says Goodyear Chairman and CEO Sam Gibara. "As a substantial portion of our third quarter volume is shipped in September, our volumes will not be as strong as originally planned.
"Because of these unprecedented conditions and continued market deterioration in our major markets, we continue to assess the weakened outlook for the fourth quarter."
Goodyear also has reaffirmed its commitment to generate $350 million in cash flow this year to reduce debt and boost its financial flexibility.
"This will be achieved primarily through working capital and capital expenditure reduction initiatives as well as asset sales."