Goodyear Tire and Rubber statement on closing their 92 automotive stores
Recession in American has attacked Goodyear Tire and Rubber. Official announced that they will close their 92 store and cut around 600 employers as balance sheet shows bad result in Goodyear Tire and Rubber.
Official has spoken that in currently recession, Americans reduce their frequency in road, put their vehicles in garage because of flying premium price in America. Of course, low of vehicles demand positive correlation with Tire and Rubber, so demand for our tire and rubber also attacked with the result, Keith Price said, as report by Reuters yesterday.
Biggest Sales Tire and Rubber Company in America has 742 store spread in United States. Closing 92 stores after tax payment settlement around $ 30 million will be done in next 3rd quarter. The close also has the goal, to reduce $9 million loss each year, official report.
Keith Price statement on yesterday is opposed with their statement on July that Goodyear Tire and Rubber said that they have high performance to challenge successful short run in recession, especially in North America. Goodyear also reported that net income in second quarter increase $31 million or goes to 31 cent per share from $56 million or 26 cent in the beginning of the year.
Generally, Automotive Sale in US also declined to lowest in 16 recent years because US policy to leave inefficiency Truck or SUV, recession in home market and credit restriction by Federal. Japanese Bridgestone Corp said in the beginning of august that demand North America against Automotive decline 5 percent in their estimate analysis because of decline of new car sales.
In July The second largest Tire and Rubber Company Michelin said that they are in wrong and difficult world, as their operational income low around 17.8 percent to 708 million Euros. Michelin said that their market segment reached 17.2 percent as well as their rival Bridgestone, while Goodyear is 16 percent in the third.
