Goodyear Makes Cuts

Article Excerpt

GOODYEAR TIRE & RUBBER CO. $26.76 (New York symbol GT; SI Rating: Extra Risk) (www.goodyear.com; 330-796-2121; Shares outstanding: 240.2 million; Market cap: $6.4 billion) plans to cut up to 500 jobs and reduce tire production at two of its plants in Amiens, France. The two plants employ about 2,700 people. Goodyear will outsource some tire production to lower-cost factories in Europe and elsewhere, and eliminate products. Goodyear continues to focus on the market for higher-profit replacement tires. However, with car and truck markets weakening, Goodyear’s growth in the cyclical tire business is still likely limited in the near future. Goodyear Tire & Rubber Co. is still a hold. hold…