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Goodyear reduces profits by another $65 million

SHARE Goodyear reduces profits by another $65 million

CLEVELAND — Goodyear Rubber & Tire Co. said Monday it would reduce its reported profit for the past six years by an additional $65 million because of improper accounting at its overseas operations and other reasons.

The Akron-based company said an internal investigation of overseas accounting was complete. It said the entire results of the probe were still under review but that net income between 1997 and 2003 will have to be reduced by $10 million.

The other $55 million is because of understatement of workers compensation claims at an undisclosed domestic plant, adjustment of profits tied to internal inventory and other issues, Goodyear said.

"This investigative process was thorough and we are pleased to have it behind us," said Robert Tieken, chief financial officer. "We look forward to issuing our financial results and refocusing all of our energies toward Goodyear's ongoing turnaround efforts."

Monday's income adjustment is on top of an October announcement that forced Goodyear to lower net income since 1998 by nearly $85 million because of separate accounting system mistakes.

The U.S. Securities and Exchange Commission is investigating those errors, which Goodyear said stem from an accounting system implemented in 1999 used to track the purchase of equipment for factories. Goodyear said it is cooperating with that investigation.

The probe of overseas accounting forced the struggling tire company to delay filing its annual financial report to the SEC due last month. Goodyear said Monday that the amended report would be filed by mid-May. Creditors had expected it to be filed by April 19.