P.M. BRIEFING : Goodyear’s Profits Down Sharply
<i> From Times wire services</i>
AKRON, Ohio —
Goodyear Tire & Rubber Co. today reported sharply lower profits for the 1988 fourth quarter and full year, reflecting the costs of a restructuring and a highly competitive U.S. tire market.
Goodyear reported net income fell 66% to $56.4 million in the fourth quarter. Sales, however, rose to a record $2.83 billion. For the whole year, profits dropped to $350.1 million from $770.9 million in 1987. The quarterly results were hit by unusual charges of $26.8 million.
Goodyear has been restructuring since early 1987 to cut the heavy debt it amassed while fighting off a 1986 hostile bid from Sir James Goldsmith. The company’s struggle to remain independent is often cited as an example of how costly and damaging corporate raids can be.
