Item 2.02 Results of Operations and Financial Condition.
A copy of a News Release issued by The Goodyear Tire & Rubber Company (the
"Company") on Friday, January 27, 2023, describing certain aspects of its
results of operations for the fourth quarter of 2022, is attached hereto as
Exhibit 99.1.
Item 2.05 Costs Associated with Exit or Disposal Activities.
On January 24, 2023, the Company approved a rationalization plan and workforce
reorganization that would result in an approximately 5 percent reduction in
salaried staff globally, or about 500 positions, in response to a challenging
industry environment and cost pressure driven by inflation. In certain foreign
countries, relevant portions of the rationalization plan remain subject to
consultation with employee representative bodies.
The Company expects to substantially complete the rationalization plan during
the first and second quarters of 2023 and estimates total pre-tax charges
associated with this action to be approximately $55 million, of which
approximately $39 million are 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 recorded $37 million of pre-tax charges in the fourth quarter of
2022 and expects to record a majority of the remaining charges in the first
quarter of 2023. A majority of the cash outflows associated with this plan
relate to cash severance payments that are expected to be paid during the first
half of 2023.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 News Release, dated January 27, 2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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 resulting from the proposed
rationalization 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.
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