Rita Forces Goodyear to Cut Back Production

[NVMojo]

Another "blame it on the rain" story ...

AKRON, Ohio (AP) - Goodyear Tire & Rubber Co., the world's biggest tire maker, has cut back production at its North American plants by 30 percent due to Hurricane Rita's disruption of the raw materials supply. Its shares sank 5 percent in afternoon trading.

The company is assessing the impact that higher production, raw material and transportation costs will have on financial results in the third and fourth quarters.

The disruption affects nine plants in the United States and three in Canada. Goodyear has 34 tire plants worldwide.

"We expect production to return to normal as the raw materials supply improves in the coming weeks," Goodyear spokesman Keith Price said Tuesday.

more...

http://www.lasvegassun.com/sunbin/stories/invest-corp/2005/oct/04/100403122.html

[phantom power]

1. let's not forget the "everybody has less money and is driving less" factor

[NVMojo]

2. you got that right!

[mnhtnbb]

3. Heard tire prices have DOUBLED

overheard a TARGET employee telling another today in a Durham, NC
TARGET store. Reason? Petroleum costs.