Goodyear to shut Australian plant
Goodyear will shut down a high-cost Australian plant in an effort to cut costs.
By Agencies |
OHIO: Goodyear Tyre & Rubber Co. has announced plans to close a high-cost Australian plant that employs 600 people.
The shutdown of the South Pacific Tyres plant in Somerton, Victoria, by Dec. 31 will save Goodyear about $35 million a year, the company said on Wednesday.
``This completes our commitment to reduce high-cost capacity by about 25 million units and achieve annual cost savings of more than $150 million,'' Goodyear Chairman and Chief Executive Robert J. Keegan said in a news release.
The company estimated total restructuring and accelerated depreciation charges at about $125 million after taxes, including about $85 million in cash charges. Goodyear said it expects to record after-tax charges of about $75 million in the second quarter.
In April, Goodyear said it had swung to a profit in the first quarter by focusing on higher-priced tires and strong international markets. Goodyear earned $147 million, or 60 cents per share, compared with a loss of $174 million, or 96 cents per share, in the same period in 2007.
Goodyear has about 70,000 employees and makes products in more than 60 factories in 26 countries.
Goodyear shares rose 70 cents, or 3.5 per cent, to $20.51 Wednesday, near the low end of their 52-week trading range of $19.06 to $36.90.
The shutdown of the South Pacific Tyres plant in Somerton, Victoria, by Dec. 31 will save Goodyear about $35 million a year, the company said on Wednesday.
``This completes our commitment to reduce high-cost capacity by about 25 million units and achieve annual cost savings of more than $150 million,'' Goodyear Chairman and Chief Executive Robert J. Keegan said in a news release.
The company estimated total restructuring and accelerated depreciation charges at about $125 million after taxes, including about $85 million in cash charges. Goodyear said it expects to record after-tax charges of about $75 million in the second quarter.
In April, Goodyear said it had swung to a profit in the first quarter by focusing on higher-priced tires and strong international markets. Goodyear earned $147 million, or 60 cents per share, compared with a loss of $174 million, or 96 cents per share, in the same period in 2007.
Goodyear has about 70,000 employees and makes products in more than 60 factories in 26 countries.
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Goodyear shares rose 70 cents, or 3.5 per cent, to $20.51 Wednesday, near the low end of their 52-week trading range of $19.06 to $36.90.
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