Goodyear Loses $61 Million in Quarter
Goodyear Tire & Rubber Co. on Wednesday blamed a depressed tire market and continued restructuring for a third-quarter loss of $61.4 million.
The company also reiterated plans to eliminate 3,000 jobs, most of them salaried positions. Most of the cuts were announced in June and September.
In September, the tire maker warned shareholders about a possible loss for the quarter. Goodyear earned $70.5 million in the third quarter of 1989.
The 1990 quarterly loss reflects unusual charges of $51.7 million for restructuring. The costs were incurred from a realignment of European tire marketing, the phasing out of medium and heavy truck tire production in Quebec, $22.2 million in environmental cleanup costs and depreciation of the All American Pipeline System.
The company also blamed the third-quarter loss on increased expenses, severe competition in the tire replacement market, reduced auto and truck production, and production cutbacks to reduce inventories.
Worldwide sales increased 8.2% to $2.9 billion. Goodyear ranks second to Groupe Michelin in sales, according to the trade magazine Tire Business.
As part of the restructuring, about 3,000 jobs will be cut to reduce Goodyear’s worldwide staff to 106,000 by mid-1992, Chairman Tom H. Barrett said in a message to shareholders.
The total includes 1,200 jobs to be eliminated in a European restructuring Goodyear announced in September and 1,100 that will be lost in a domestic restructuring announced in June.
