42582--2/17/2006--GOODYEAR_TIRE_&_RUBBER_CO

related topics

{debt, indebtedness, cash}

{financial, litigation, operation}

{cost, contract, operation}

{capital, credit, financial}

{operation, international, foreign}

{cost, regulation, environmental}

{competitive, industry, competition}

{cost, operation, labor}

{personnel, key, retain}

{product, market, service}

We face significant global competition and our market share could decline. Our pension plans are significantly underfunded and our required contributions to these plans are expected to increase. Higher raw material and energy costs may materially adversely affect our operating results and financial condition. Continued pricing pressures from vehicle manufacturers may materially adversely affect our business. If we fail to extend or renegotiate our primary collective bargaining contracts with our labor unions as they expire from time to time, or if our unionized employees were to engage in a strike or other work stoppage, our business and operating results could be materially adversely affected. Pending litigation relating to our 2003 restatement could have a material adverse effect on our financial position, cash flows and results of operation. An ongoing SEC investigation regarding our accounting restatement could materially adversely affect us. Our long-term ability to meet our obligations and to repay maturing indebtedness is dependent on our ability to access capital markets in the future and to improve our operating results. We have a substantial amount of debt, which could restrict our growth, place us at a competitive disadvantage or otherwise materially adversely affect our financial health. Any failure to be in compliance with any material provision or covenant of our debt instruments could have a material adverse effect on our liquidity and operations. Our capital expenditures may not be adequate to maintain our competitive position. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. We may incur significant costs in connection with asbestos claims. We may be required to deposit cash collateral to support an appeal bond if we are subject to a significant adverse judgment, which may have a material adverse effect on our liquidity. We are subject to extensive government regulations that may materially adversely affect our operating results. Our international operations have certain risks that may materially adversely affect our operating results. We have foreign currency translation and transaction risks that may materially adversely affect our operating results. The terms and conditions of our global alliance with Sumitomo Rubber Industries, Ltd. ( SRI ) provide for certain exit rights available to SRI upon the occurrence of certain events, which could require us to make a substantial payment to acquire SRI s interest in certain of their joint venture alliances. If we are unable to attract and retain key personnel our business could be materially adversely affected.

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42582--2/17/2006--GOODYEAR_TIRE_&_RUBBER_CO_/OH/