AKRON, Ohio, April 1, 2011 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NYSE: GT) announced today that it has completed the previously announced sale of its Latin American farm tire business to Titan Tire Corporation, a subsidiary of Titan International Inc.
Goodyear completed the sale for approximately $99 million, subject to post-closing conditions and adjustments, for the Latin American business, which includes the company's Sao Paulo, Brazil manufacturing plant, property, equipment and inventories and a licensing agreement that will allow Titan to sell Goodyear-brand farm tires in Latin America and North America.
"This transaction reinforces our focus on targeted market segments," said Richard J. Kramer, Goodyear chairman and chief executive officer. "Our Latin American farm tire operations have been very successful for many decades. I'm confident this will continue and that Titan will maintain our strong relationships with Goodyear farm tire customers," he added.
Goodyear announced agreements to sell its Latin American and European farm tire businesses to Titan in December 2010. The European portion of the transaction has not yet been completed. Assuming the European portion of the transaction is completed, Goodyear's operating results, excluding any gain or loss on the sales, are not expected to be materially affected, although the impact on segment operating income will vary by region.
Goodyear is one of the world's largest tire companies. It employs approximately 72,000 people and manufactures its products in 56 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear, go to www.goodyear.com.
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to successfully complete a social plan with respect to the discontinuation of consumer tire production at our Amiens North manufacturing facility or to do so in a timely manner; our ability to realize anticipated savings and operational benefits from our cost reduction initiatives or to implement successfully other strategic initiatives; increases in the prices paid for raw materials and energy; pension plan funding obligations; actions and initiatives taken by both current and potential competitors; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; a labor strike, work stoppage or other similar event; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.