Goodyear Tire & Rubber Co 8-K, filed Jun 1, 2023
Goodyear Tire & Rubber Co (GT)
About this 8-K
Goodyear Tire & Rubber Co filed this 8-K on June 1, 2023, reporting on events of May 31, 2023.
Items reported
- Item 2.05: Exit or restructuring costs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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Month 1, 2023
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| Item 2.05 | Costs Associated with Exit or Disposal Activities. |
On May 31, 2023, The Goodyear Tire & Rubber Company (the “Company”) approved a plan to reduce production capacity at its Fulda, Germany tire manufacturing facility (“Fulda”) by approximately 50%. The proposed plan is intended to reduce the Company’s production cost per tire in its Europe, Middle East and Africa strategic business unit (“EMEA”). The proposed plan would include approximately 550 job reductions at Fulda, consisting of 375 associates and 175 contracted positions. The plan remains subject to consultation with relevant employee representative bodies. The proposed plan would also reduce the number of tire SKUs produced in Fulda by approximately 450, with approximately 200 of those SKUs being transferred to other EMEA tire manufacturing facilities.
The Company expects to substantially complete this rationalization plan by the end of 2024 and estimates total pre-tax charges associated with this action to be between $105 million and $115 million, of which $95 million to $105 million is expected to be cash charges primarily for associate-related and other exit costs, with the remainder representing non-cash charges primarily for accelerated depreciation and other asset-related charges. The Company expects to record approximately $65 million of pre-tax charges in the second quarter of 2023 and approximately $10 million of pre-tax charges in the remainder of 2023 related to this plan. The majority of the remaining charges will be recorded in 2024. The majority of the cash outflows associated with this plan will occur in 2024.
These actions are expected to improve EMEA’s segment operating income by approximately $15 million in 2024 and by approximately $30 million annually thereafter.
Safe Harbor Statement
Certain information contained in this Current Report on Form 8-K may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including those statements regarding the expected amounts of charges and savings resulting from the proposed plan. All forward-looking statements are based on management’s estimates, projections and assumptions as of the date hereof. There are a variety of factors, many of which are beyond the Company’s control, which could affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to the risks and other factors described in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent management’s estimates only as of today and should not be relied upon as representing management’s estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, even if management’s estimates change.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE GOODYEAR TIRE & RUBBER COMPANY | ||||||
| Date: June 1, 2023 | By | /s/ Daniel T. Young | ||||
| Daniel T. Young | ||||||
| Secretary | ||||||