(One News report)
Wellington – Goodyear & Dunlop Tyres (NZ), the New Zealand unit of the US tire maker, narrowed its full-year loss after exiting commercial tire and retread operations, firing workers and selling its Beaurepaires retail stores. The company's annual accounts were again tagged by its auditors.
The net loss narrowed to $1.68 million in calendar 2013, from a loss of $20 million a year earlier that included $10.4 million of restructuring costs, according to the company's annual report. Total revenue in the latest year tumbled 48% to $60 million.
Goodyear NZ's 2013 accounts show the company succeeded in slashing some costs as a result of restructuring. Wages and salaries dropped 65% to $8.5 million.
Marketing expenses fell 60% to $1.2 million and operating lease rentals declined 46% to $4 million. Purchases from external parties fell 66% to $19 million.
Provisions in 2013 fell to $397,100 from $2.97 million in 2012. The company is funded through either a joint HSBC and ANZ bank facility with Goodyear & Dunlop Tyres (Australia), which is ultimately guaranteed by its US parent – or a loan from related party Goodyear Luxemburg. New York-listed Goodyear Tire & Rubber's shares have soared 83% in the past 12 months to recently trade at US$26.93 and are rated a 'buy' based on a Reuters analyst survey.
The net loss for 2013 was the fourth in a row and auditors PricewaterhouseCoopers tagged the report with an 'emphasis of matter', referring to the latest loss and noting that total liabilities exceeded assets by $16.3 million as at 31 December. The excess of liabilities over assets and reliance on funding "indicates the existence of a material uncertainty that may cast significant doubt about the company and group's ability to continue as a going concern," the auditor says.
Last year Goodyear exited local retailing, selling 52 Beaurepaires retail stores and shifting 180 employees to Beau Ideal, owned by TyreLine Distributors' founder Grant Rushbrooke. Beau Ideal would also take on Goodyear's local retail marketing and licensing programmes. Goodyear sold its heavy commercial tyre service in 2012.
Larger rival Bridgestone New Zealand, the local unit of the world's biggest tire maker, posted a profit of $9.6 million for 2013, just down from 2012's decade high of $10.2 million, on sales of $219 million.