Reuters, August 20, 2008
Goodyear Tire & Rubber said it would close 12 per cent, or 92, of its company-owned U.S. stores and cut 600 full- and part-time jobs as the U.S. economic downturn put more pressure on the company.
The company owns 742 stores in the United States.
Goodyear, the largest tire maker in the U.S. by sales, said it would take after-tax charges of about $30 million in connection with the closings, half of which would be recorded in the third quarter. The company said the closings would enable it to eliminate $9 million in annual losses.
In July, Goodyear said it was confident it would be able to navigate the near-term economic challenges, especially in North America. At that time, it said second-quarter net income rose to $75 million, or 31 cents per share, from $56 million a year earlier.
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