Union savings at Goodyear

Article Excerpt

GOODYEAR TIRE & RUBBER CO. $17.35 (New York symbol GT; SI Rating: Extra Risk) (www.goodyear.com; 330-796-2121; Shares outstanding: 241.9 million; Market cap: $4.2 billion) expects to save $555 million over four years as a result of concessions from its labour union. In return, Goodyear has agreed to spend $600 million over four years on upgrading plants represented by the union. To offset falling tire sales to carmakers, Goodyear is focusing on selling more replacement tires, which generate higher profit margins. However, the overall U.S. car and truck market remains weak. This will likely limit the company’s growth prospects in the near future. Goodyear remains a hold. hold…