42582--2/18/2009--GOODYEAR_TIRE_&_RUBBER_CO

related topics

{debt, indebtedness, cash}

{cost, regulation, environmental}

{cost, contract, operation}

{cost, operation, labor}

{operation, international, foreign}

{capital, credit, financial}

{competitive, industry, competition}

{tax, income, asset}

We face significant global competition and our market share could decline. Our pension plans are significantly underfunded and, in the future, the underfunding levels of our pension plans and our pension expenses could materially increase. Higher raw material and energy costs may materially adversely affect our operating results and financial condition. Work stoppages, financial difficulties, supply disruptions or economic conditions affecting our major OE customers, dealers or suppliers could harm our business. 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, financial position, results of operations and liquidity could be materially adversely affected. 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, or a material reduction in the borrowing base under our revolving credit facility, could have a material adverse effect on our liquidity and operations. Our capital expenditures may not be adequate to maintain our competitive position and may not be implemented in a timely or cost-effective manner. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. We have substantial fixed costs and, as a result, our operating income fluctuates disproportionately with changes in our net sales. We may incur significant costs in connection with asbestos claims. We may be required to provide letters of credit or post cash collateral if we are subject to a significant adverse judgment or if we are unable to obtain surety bonds, 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. 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 our joint venture alliances.

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42582--2/18/2009--GOODYEAR_TIRE_&_RUBBER_CO_/OH/