22 Jul 2004
AKRON (July 21)--Goodyear has decided not to sell its chemical business, which has been for sale since March 2003.
The tire maker said it decided the business is more valuable to the company and its stakeholders if retained, rather than sold. Goodyear chemical has annual sales of about $750 million and employs about 1,400, making basic and high-performance polymers, antioxidants, latex and adhesive resins.
The company tried to sell Goodyear Chemical to enhance its financial flexibility. But Robert J. Keegan, Goodyear chairman and CEO, said the cash flow and cost advantages the manufacturer gets from the unit, as well as its contributions to the tire business, outweigh the benefits of a sale.
Goodyear also said it expects to report second-quarter sales of about $4.5 billion, up from $3.8 billion last year.
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