By Patrick Raleigh, ERJ On-line news editor
Akron, Ohio-Goodyear Tire & Rubber Co. has reached agreement with its creditors over the delay of its annual results filing with the US Securities and Exchange Commission, the tyre maker has announced 19 April.
The deal amends the group's credit facilities in the European Union and US to allow for an SEC filing by 19 May, at the latest. The loan agreements had previously required that Goodyear file its results by 19 April.
Goodyear recently concluded an investigation overseas accounting practices, which it estimated would lead to a $10-million reduction in reported net income between 1997 and 2003. The revision, it said, would mostly impact the company's European Union business.
The accounting probe was launched in early December, and on 9 March, the company said it was taking disciplinary actions against several managers in its European Union operation.
Goodyear has also announced adjustments, which could lead to a further $55-million reduction in its net income between 1997 and 2003.
The adjustments include $20 million related to workers' compensation claims, $10 million to fixed assets, $8 million to product liability, $7 million to inter-company profit elimination in inventory and $10 million to other items.