Goodyear tire & rubber may sell chemical business. (Corporate, Financial News).
Goodyear Tire & Rubber, Akron, OH, announced that, to both enhance its financial flexibility and focus future investments on its core business, it is exploring the possible sale of its chemical business. Goodyear Chemical provides basic and high-performance polymers, antioxidants, latex and adhesive resins to customers worldwide. The business has annual revenues of more than $750 million. Goodyear also announced that it will record a non-cash charge of $1.1 billion ($6.17 per share) for the fourth quarter of 2002 to establish a valuation allowance against its net U.S. deferred tax assets. In addition to this charge, the company's shareholders' equity at December 31, 2002 will also be reduced by $1.3 billion to reflect an increase in its unfunded pension benefit obligations. These non-cash adjustments will impact both tax expense and shareholders' equity on Goodyear's financial statements, but did not have a direct impact on the company's cash flow.