Goodyear Tire & Rubber to close Australian plant, sees $125M in related charges

Wednesday, June 25, 2008; Posted: 06:45 PM

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SAN FRANCISCO, Jun 26, 2008 (Thomson Financial via COMTEX) -- GT | Quote | Chart | News | PowerRating -- Goodyear Tire & Rubber Co. late Wednesday said it plans to close its manufacturing operations at South Pacific Tyres in Australia by the end of the year.

The Akron, Ohio-based tire company expects charges of $125 million after tax in connection with the closure. It expects to record some $75 million of those charges in the second quarter.

Goodyear sees $35 million in related annual cost savings.

South Pacific Tyres has been wholly owned by Goodyear since 2006.

The stock closed the regular session up 70 cents, or 3.5%, at $20.51.

Brigid Gaffikin bg/gm

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For full details on Goodyear Tire&Rubber Co (GT) click here. Goodyear Tire&Rubber Co (GT) has Short Term PowerRatings of 4. Details on Goodyear Tire&Rubber Co (GT) Short Term PowerRatings is available at This Link.

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