Cost of Fighting Takeover Puts Goodyear in the Red

Goodyear Tire & Rubber Co. said it lost $112.8 million in the fourth quarter, mainly because of heavy restructuring charges associated with fighting off a takeover attempt by Sir James Goldsmith.

The loss contrasts with a profit of $84.5 million in the fourth quarter of 1985.

Revenue for the quarter rose 11% to $2.4 billion from $2.1 billion in 1985, principally because the company sold more tires.

Goodyear took a restructuring charge of $183.4 million in the final three months of 1986.

The Akron, Ohio-based firm said the charge included $34.5 million that represented the difference between the market value of Goodyear stock and the $49.50 a share it paid to buy out Goldsmith last November. It also included $37.6 million to reimburse expenses to the Goldsmith’s General Oriental group.

For the year, the company said its net income fell 70% to $124.1 million, compared to a profit of $412.1 million in 1985.

Revenue rose 8.6% to $9.1 billion from $8.4 billion in 1985.

The company said its yearly results included restructuring charges of $224.6 million, a $110.8 million writedown of the value of oil and gas reserves due to depressed oil prices and a gain of $152 million from settlement of a significant portion of the company’s pension obligation.