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News Breaks
February 1, 2013
06:24 EDTGTGoodyear Tire to exit farm tire business in EMEA region
On January 31, the company announced in an 8-K filing that it intends to exit the farm tire business in the Europe, Middle East and Africa region and, accordingly, GDTF has initiated a plan to also discontinue farm tire production at the Amiens North manufacturing facility, which would result in the full closure of that facility. GDTF has initiated communications with affected associates regarding the full closure of the Amiens North manufacturing facility. The plans remain subject to consultation with the European Central Works Council, GDTF’s employee representatives and other relevant bodies in the EMEA region. In conjunction with these actions, in 4Q12, it recorded $74M and now estimates that the total charges associated with the above plans will be at least $230M, $191M of which have now been recorded. The remaining charges will be recognized as costs are incurred in future periods. Non-cash charges for accelerated depreciation of approximately $20M are expected to be offset by non-cash pension curtailment gains. The actions would eliminate approximately 6M units of high-cost physical capacity, although GDTF currently produces approximately 1.3M tires per year at the Amiens North manufacturing facility. The actions are expected to improve EMEA operating income by approximately $75M annually, as compared to 2012 results, following the closure.
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June 25, 2015
09:08 EDTGTGoodyear Tire to close Wolverhampton, U.K., facility, cut 360-390 positions
The Goodyear Tire & Rubber Company said in a regulatory filing that on June 23, it approved rationalization plans in its Europe, Middle East and Africa strategic business unit in order to strengthen the company’s global competiveness. The rationalization plans include closing the Wolverhampton, United Kingdom mixing and retreading facility and transferring its production to existing manufacturing facilities across EMEA. The plans also include the transfer of consumer tire production from the manufacturing facility in Wittlich, Germany to existing manufacturing facilities in EMEA. These plans, which will result in a net reduction of approximately 360 to 390 associate positions, remain subject to consultation with relevant employee representative bodies.The company expects to be substantially complete with these rationalization plans by the end of 2016 and estimates total charges associated with these actions to be between $70M-$80M, or $60M-$70M after taxes and minority interest, of which $55M-$60M is expected to be cash charges primarily related to severance payments and contractual obligations and approximately $15M-$20M is expected to be non-cash charges primarily related to accelerated depreciation and other asset related charges. The company expects to record approximately $30M of charges in the second quarter of 2015 associated with these plans. Charges of approximately $10M are expected to be recognized in the second half of 2015.Once completed, these actions are expected to improve EMEA segment operating income by approximately $30M annually, beginning in 2017.

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