Goodyear sells plantation in RI

Goodyear sells plantation in RI

AKRON, Ohio: Goodyear Tire & Rubber Co. has completed the sale of an Indonesian rubber plantation to Bridgestone Corp. for about US$62 million.

The sale of its 95 percent stake in Goodyear Sumatra Plantations is part of Goodyear's strategy to focus on its core businesses, the company said.

The world's largest tire company reported a profit of nearly $115 million on sales of $18.4 billion in 2004 after losing money for four straight years. Goodyear executives have slashed about 20,000 jobs since 1999, and have sold many noncore businesses, from farm tires to rubber plantations.

The company said the plantation sale is not expected to impact its ability to acquire rubber.

The plantation began operations in North Sumatra in 1917 and has about 5,000 employees.

Goodyear recorded a non-cash after-tax charge of $15.6 million in the fourth quarter of 2004 in connection with the transaction.

Goodyear manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries and employs about 80,000 people worldwide. -- AP