Goodyear's Poland Facility Faces Fire Wrath, Expects EMEA Sales To Decline In Q3 & Q4
Portfolio Pulse from Lekha Gupta
Goodyear Tire & Rubber Company (NASDAQ:GT) has provided an update on the fire damage at its Debica, Poland facility and the related financial impact on its earnings. The company expects EMEA consumer sales to be negatively affected by $20 million- $25 million in Q3 and $10 million to $15 million in Q4 2023. The company's insurance policy covers $15 million of damage per occurrence, which will reach the deductible limit in Q3 and projects a significant portion of the expense to be reimbursed by the insurance provider. GT also approved a rationalization plan in the Asia Pacific and proposed a reduction of around 700 positions.
September 29, 2023 | 11:29 am
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Goodyear's fire damage at its Poland facility is expected to negatively impact its EMEA sales and earnings. However, insurance coverage and rationalization plan in the Asia Pacific could mitigate some of the financial impact.
The fire at Goodyear's Poland facility is expected to negatively impact the company's EMEA sales and earnings in Q3 and Q4 2023. However, the company's insurance policy covers $15 million of damage per occurrence, which could help offset some of the financial impact. Additionally, the company's rationalization plan in the Asia Pacific, which includes a reduction of around 700 positions, could also help mitigate some of the financial impact.
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