Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
      Bridgestone Iowa plant navigates pandemic, demand
    • Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
      Online retailer CARiD.com looks to triple size of tire/wheel installer network
    • Video: Michelin looks to diversify for additional growth opportunities
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      Vipal Rubber retread guarantee program hits milestone
    • Love's adds 6 Speedco servicing sites to its Travel Stop network
      Bridgestone hosts vaccination events for plant employees
      Jinyu Tire starts truck tire production at Vietnam plant
      Vipal Rubber retread guarantee program hits milestone
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Video: Michelin looks to diversify for additional growth opportunities
      Conti adding dynamic driving simulator at German R&D center
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
    • Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
      Bias-ply tires return to NASCAR Cup Series for Bristol dirt race
      Hankook named race tire supplier for touring car series in Europe, Japan
    • Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Cooper adds Rugged Trek all-terrain to Discoverer LT/SUV tire line
      Hankook unveils Vantra specialty trailer tires
    • Bauer Built promotes pair to VP positions
      TECH Americas adds Haggerty to marketing team
      Snap-On introduces TreadReader handheld tire scanner
      Discount Tire adopts mobile tread-depth scanning system
    • Snap-On introduces TreadReader handheld tire scanner
      Marked for winter: Origin of Three-Peak Mountain Snowflake
      Post-repair message adds personal touch
      Cioffi: Will remote working be the new normal?
    • SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
      TIA seeking nominations for Tire Industry Hall of Fame
      SEMA survey shows resilient auto aftermarket in 2020
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Maxxis offers discount to ChampCar competitors
      Jinyu Tire starts truck tire production at Vietnam plant
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TPMS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
February 16, 2004 01:00 AM

SEC issues formal probe of Goodyear accounting

Lisa Aichlmayr
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Goodyear's investigation into possible improper accounting issues has been expanded to other overseas operations outside of Europe, and the U.S. Securities and Exchange Commission (SEC) has issued a formal order of investigation into last year's restatement, the tire maker said.

    The company filed an 8-K report with the SEC as part of its proposed $650 million term loan. The report highlights several risk factors facing the company-from significant competition to pricing pressure from vehicle manufacturers-that could impact its results. Goodyear is seeking the term loan, which would add $350 million to a $300 million loan addition announced in January. The proposed $650 million would be in addition to a $1.3 billion asset-based credit facility arranged last year as part of a larger package negotiated to replace $2.94 billion in financing with $3.3 billion in credit facilities.

    Last year, Goodyear announced it would restate more than five years' worth of earnings after it discovered needed adjustments. In its report, Goodyear said it still is working to install internal controls aimed at strengthening the company's account reconciliation control process. Goodyear's independent accountants will not be able to assess the effectiveness of the actions until they complete their audit for the fiscal year ended Dec. 31.

    In November, Goodyear reported restated results from 1998 through the first half of 2003. But in December, Goodyear delayed filing its amended 2002 10-K because of the possible improper accounting issues in Europe.

    ``The investigation has subsequently expanded to other locations of the company's overseas operations,'' Goodyear said in its report. A spokesman added the other areas are outside of Europe, but he did not identify them.

    ``We're working as expeditiously as we can to complete it, but we're going to be as thorough as possible,'' he said.

    Because of this investigation, there is a ``substantial probability'' that the 2003 10-K will not be filed by its March 15 deadline, the report said.

    Also, the SEC informed Goodyear on Feb. 5 that it had approved the issuance of a formal order of investigation. Shortly after Goodyear announced its restatement, the SEC had launched a routine informal investigation.

    Though he could not comment specifically on the Goodyear investigation, an SEC spokesman told Tire Business that the formal order generally means the full commission has authorized staff to fully investigate whether any laws have been broken. The staff also has subpoena power if needed. The issuance of the formal order does not necessarily imply any charges are imminent, he said.

    Goodyear said it is cooperating fully with the SEC investigation, though it is unable to predict the outcome. In addition, at least 36 lawsuits have been filed against the company following the restatements.

    Goodyear's shares tumbled more than 9 percent following the report.

    The next day, Goodyear announced it intends to commence a private offering of about $650 million aggregate principal amount of senior secured notes to help pay down some debt and for general corporate purposes. The notes are expected to be secured by junior liens on certain collateral securing the company's senior secured U.S. credit facilities. The final amount and maturities of the notes will be determined by market conditions.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award