Tyre maker Goodyear has reported a fourth quarter 2008 loss of $300m on sales of $4.1bn, down from $5.2bn in Q4 2007 quarter, despite increases in Goodyear-branded market share.
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“Given lower industry demand, we are taking aggressive action, reducing tyre production, cutting costs and adjusting investments to better match market conditions,” said chairman and CEO Robert Keegan.
Goodyear plans to further reduce costs by approximately $700 million in 2009 and has therefore raised its four-point cost savings plan target to $2.5bn.
It plans to eliminate between 15m and 25m units of additional manufacturing capacity worldwide over the next two years.
Fourth quarter operating loss was $159m versus $312m profit in Q4 2007.
Goodyear’s sales for 2008 were $19.5bn, less than 1% lower than 2007’s record $19.6 bn.
Operating income was $804m, down from $1.2bn in 2007.
The net loss of $77m compared to 2007 net income of $602m.
