AKRON (March 10, 2004) — Goodyear has taken disciplinary action against several senior managers at its European Union unit as part of an ongoing investigation into improper accounting practices at its European and other overseas operations.
The disciplinary actions include separation of some senior managers and the reprimand of other European personnel, the company said. The tire maker would not disclose the names of those disciplined or their specific disciplinary actions, saying its “personnel policies and applicable local laws” precluded it from doing so.
"These actions represent an important milestone toward completing the investigation, which is necessary for us to file our audited financials for 2003," according to Robert W. Tieken, executive vice president and chief financial officer.
He said a significant portion of the European review has been completed and Goodyear was making every effort to conclude the probe as soon as possible.
At the same time, Goodyear said the investigation prompted it to streamline its organizational structure in Europe and other overseas operations, although it did not go into detail.
Unrelated to the accounting investigation, Goodyear said it also has identified adjustments to the previously announced restatement of its financial statements that are expected to result in a reduction of operating earnings of $16 million over five years and a reduction in shareholders´ equity at Sept. 30, 2003, of approximately $23 million.