Goodyear Tire & Rubber Company
) announced the public offering of $750 million senior unsecured
notes of 8 years. With an increase of $150 million over this
amount, the company subsequently declared the pricing of $900
million of 6.5% senior unsecured notes of 8 years.
The offering will be made under a shelf registration statement
with the U.S. Securities and Exchange Commission.
Goldman Sachs & Co.
), Barclays Capital Inc., Citigroup Global Markets Inc., Credit
Agricole Securities (USA) Inc., Deutsche Bank Securities Inc.,
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC will
act as the joint book-running managers for the offering.
The proceeds from this offering will be utilized for funding
discretionary contributions to the frozen U.S. pension plans as
well as for general corporate purposes.
Goodyear is one of the largest tire manufacturing companies
worldwide, selling its products under the Goodyear, Kelly,
Dunlop, Fulda, Debica, Sava and various other "house" brand names
as well as private-label brands. The company currently retains a
Zacks Rank #4 (Sell).
Goodyear reported a profit of $97 million or 39 cents per share
in the fourth quarter of 2012 that significantly rose from $6
million or 3 cents in the same quarter of 2011 (all excluding
special items).With this, the company has beaten the Zacks
Consensus Estimate of 21 cents per share.
Revenues dipped 11.2% to $5.0 billion, owing to $338 million in
lower tire unit volumes, $221 million in lower sales in other
tire-related businesses, mainly third-party chemical sales in
North America, and $85 million in unfavorable foreign currency
translation. It was lower than the Zacks Consensus Estimate of
Few stocks that are performing well in the industry where
Goodyear operates are
). Each of them carry a Zacks Rank #1 (Strong Buy).
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