Goodyear to take $60 million charge on slowdown
By
Associated Press
June 19, 2009
|
The Goodyear Tire & Rubber Co. said Friday it would record a $60 million charge in the third quarter related to downsizing its Union City, Tenn., plant.
The Akron, Ohio-based tire maker said the after-tax restructuring charge is associated with severance packages being offered to 550 employees as the plant moves from a continuous operating schedule to a five-day, three-shift one in July. The move is intended to align Goodyear's production volumes with a weaker demand.
Goodyear Tire reported a $333 million loss in the first quarter as sales fell 28 percent.
Members of the United Steelworkers union at the plant ratified a local labor agreement in May permitting the schedule change. The national Steelworkers union opened contract talks earlier this month, as its three-year contract expires July 18.
Shares of Goodyear rose 15 cents to $12.23 Friday.
(This version CORRECTS the date of the union contract expiration to July 18)
Terms & Conditions
RSS Headlines
Fool UK