Goodyear Posts $102 Million Q4 Loss; Announces Job Cuts

ByBridgeNews and Bruce Vernyi Goodyear Tire & Rubber Co. posted a loss in the fourth quarter and says it will cut 7,200 jobs, almost 7% of its workforce, in order to reduce costs by $150 million in 2001. The 2000 results include a post-tax charge of $93.7 million related to workforce reductions and worldwide facility consolidations The Akron, Ohio-based company reported a net loss of $102 million, or 65 cents a share, compared with net income of $37 million, or 23 cents a share, a year earlier. Excluding extraordinary items, Goodyear posted a loss from operations of $16.5 million, or 11 cents a share, compared with analysts' expectations for a loss of 16 cents a share. Sales fell 4.1% to $3.53 billion. "The severe decline in original equipment demand for tires and engineered products in North America and the very soft winter tire market in Europe had a substantial impact on our fourth-quarter results," says Samir G. Gibara, chairman and CEO.