tiprankstipranks

Goodyear Tire sees Q2 charges of $40M from facility closure in South Africa

In regulatory filing, the company stated, “On June 2, 2025, The Goodyear Tire (GT) & Rubber Company approved a proposed plan to close our manufacturing facility in Kariega, South Africa in the Europe, Middle East and Africa business unit. The proposed plan includes approximately 900 job reductions, including associates and contracted positions, and is expected to be substantially complete by the end of 2025. The total charges associated with this action are expected to be between $100 million and $110 million, of which $45 million to $55 million are expected to be cash charges primarily for associate-related and other exit costs and the remaining costs are expected to be non-cash charges primarily for accelerated depreciation and other asset-related charges. The company expects to record approximately $40 million of charges in the second quarter of 2025 and approximately $60 million of charges during the remainder of 2025. The majority of the cash outflows associated with this plan will occur by the end of 2025. These actions are expected to improve EMEA’s segment operating income by approximately $10 million in 2026 and annually thereafter. The proposed rationalization plan remains subject to consultation with employee representative bodies.”

Don’t Miss TipRanks’ Half-Year Sale

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

Disclaimer & DisclosureReport an Issue

1