Consumer Tires

Goodyear wants $700M in savings by end of '09

Posted on July 30, 2009

Goodyear Tire & Rubber Co. plans to achieve $700 million in savings by the end of 2009 thanks to its "Four-Point Cost Savings Plan," Goodyear Chairman, CEO and President Bob Keegan told investors earlier today.

Some $200 million in savings were generated during the second quarter of the year, he said.

Moving forward, the Akron, Ohio-based tiremaker will continue to "drive costs down." Cost-saving measures will include further job cuts. Approximately 5,500 jobs have been eliminated at Goodyear through June 2009, Keegan noted.

Earlier today, July 30, Goodyear posted a net loss of $253 million on net sales of $3.9 billion for the second quarter. That compares to net income of $93 million on sales of $5.2 billion for the same period a year ago.

The company attributed the 25% decrease in sales to a 17% decline in tire unit volume ("due to significantly lower global industry demand"), the impact of currency translation, and a reduction in sales in other tire-related businesses (primarily third-party chemical sales by the North American Tire business unit).

Related Topics: financials, Goodyear

Comments ( 0 )
More Stories
News Tire Discounters Tops 125-Store Mark

Tire Discounters Inc. now has more than 125 locations with the recent opening of three stores in Indiana and an outlet in Kentucky.

News A 5G-Enabled Tire? Pirelli Says It's Here

Pirelli & Cie SpA says it has developed the "world's first tires that interact with the 5G network."

"We've designed our stores to be a modern mom-and-pop for busy families and businesspeople," says Julie Holmes, co-CEO of Virginia Tire & Auto LLC. 
News Virginia Tire & Auto Opens 17th Store

Virginia Tire & Auto LLC has opened a new store in Vienna, Va., the fourth new location the dealership has opened this year.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!