Goodyear cutting nearly 5,000 jobs after Q4 loss

CLEVELAND -- The cuts equal almost 7% of the Akron, Ohio-based company's work force and follow the elimination of about 4,000 jobs in the second half of last year.

Goodyear lost $330 million, or $1.37 a share, in the fourth quarter, after a profit of $52 million, or 23 cents a share, a year earlier.

The company lost $1.18 a share, excluding one-time charges or gains, in the most recent quarter. Analysts surveyed by Thomson Reuters expected a loss of $1.03 cents a share on that basis.

Sales dipped to $4.1 billion from $5.2 billion a year earlier.

The company said the global economy depressed the number of tires sold in the recent quarter by 19%. Revenue per tire actually increased.

As a strategy to boost sales, Goodyear said it will step up new product offerings. These include its Assurance Fuel Max tire, which was introduced earlier this month and will go on General Motors' new Chevrolet Volt electric vehicle.

Besides the job cuts, Goodyear is freezing salaries, putting restrictions on some spending and putting in place purchasing strategies aimed at lowering raw materials costs.

Goodyear also plans to reduce its global tire capacity by 15 million and 25 million tires over two years while seeking ways to improve cash flow this year. It is reducing capital expenditures, inventory levels and is looking to sell noncore assets.

Robert J. Keegan, Goodyear chairman and chief executive officer, said in a prepared statement the actions reflect new economic realities.

"We will remain flexible and are prepared to take additional actions if market conditions warrant. Our goal is to ensure Goodyear is positioned for success when tire markets recover," he said.

In a conference call Wednesday morning with analysts, Keegan said Goodyear is feeling the impact of a down market for new cars and people driving fewer miles.