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Goodyear to End Jamaican Operations

Goodyear Jamaica Limited has decided to call it quits after some 40 years.

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Tropical Battery, whom the Goodyear subsidiary appointed Jamaican distributor of the brand in August, will continue in this role following the wind up of the national operation.

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The Goodyear subsidiary, which ceased the local manufacture of tyres some 11 years ago, has faced an uphill battle of late. A 65% dip in profits during 2006 was followed on Jan. 10, 2007 by a fire that badly damaged the company’s distribution centre in St. Andrew. And although Goodyear Jamaica reported in July 2007 that inventory was again at 95% its pre-fire level, and that the company intended to double its sales, equity in the company is today valued at $467.9 million (£4.1 million), down from $471 million at December 2007. Its stock market value as at Tuesday was $178.2 million (£1.6 million).

Goodyear Jamaica General manager Steven Miller, citing disclosure rules, has not at this time disclosed the company’s winding up plans in great detail: "At the extraordinary general meeting, shareholders will vote on a resolution to liquidate Goodyear Jamaica Ltd.’s assets," he said. "Once the requisite number or percentage of shareholders vote in favour of liquidation, the business of the company changes and a liquidator is named who will collect all moneys owed to the company and pay off all debts owed by the company and distribute the remainder to the shareholders."

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Miller gave no specific reason for seeking voluntary liquidation, but Goodyear has been faced with year-over-year decrease in profits. Within the current period, year to date September, expenses have ballooned, while sales have largely been flat. Revenue in the third quarter dropped off by 10%. (Tyres & Accessories/Staffordshire, U.K.)

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