GT Goodyear Tire & Rubber Co.

Risks

• If we do not successfully implement our strategic initiatives, our operating results, financial condition and liquidity may be materially adversely affected.
• We face significant global competition and our market share could decline.
• Raw material and energy costs may materially adversely affect our operating results and financial condition.
• If we fail to extend or renegotiate significant 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 or interruption, our business, results of operations, financial condition and liquidity could be materially adversely affected.
• We could be negatively impacted by the imposition of tariffs on imported tires and other goods.
• Our international operations have certain risks that may materially adversely affect our operating results, financial condition and liquidity.
• We have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity.
• Our long term ability to meet our obligations, to repay maturing indebtedness or to implement strategic initiatives may be dependent on our ability to access capital markets in the future and to improve our operating results.
• Financial difficulties, work stoppages, supply disruptions or economic conditions affecting our major customers, dealers or suppliers could harm our business.
• Our capital expenditures may not be adequate to maintain our competitive position and may not be implemented in a timely or cost-effective manner.
• 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 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 our contingent liabilities and tax matters.
• We are subject to extensive government regulations that may materially adversely affect our operating results.
• We may be adversely affected by any disruption in, or failure of, our information technology systems.
• If we are unable to attract and retain key personnel our business could be materially adversely affected.
• We may be impacted by economic and supply disruptions associated with events beyond our control, such as war, acts of terror, political unrest, public health concerns, labor disputes or natural disasters.