AKRON (April 2, 2003)—Goodyear expects to report a net loss of about $1.1 billion, or $6.62 per share, for the year ended Dec. 31, 2002, according to a filing with the Securities and Exchange Commission.
The bulk of that figure is from a previously announced non-cash charge of $1.1 billion, or $6.17 per share, that Goodyear took in the fourth quarter. The $1.1 billion charge was made because the company did not expect to qualify for certain tax credits, a Goodyear spokesman has said.
In 2001, Goodyear reported a net loss of about $204 million, or $1.27 per share.
The Akron-based tire maker's final numbers for the fourth quarter and the year will be released April 3, the company said. Goodyear also then will file a Form 10-K with the SEC detailing the specifics of the new loan agreements.
On April 1, Goodyear said it completed the talks with its lenders, replacing $2.94 billion in financing with $3.3 billion in credit facilities. Goodyear said the restructured agreements replace facilities that generally had shorter maturities, but, with the exception of $763 million in U.S. and Canadian accounts, had been unsecured debt.
Company officials said Goodyear now has the time and opportunity to turn its North American tire business around.