CHICAGO -- Goodyear Tire & Rubber Co. said Monday that its operating income at its North American unit declined in May due to higher costs and weak prices.
Goodyear, of Akron, Ohio, needs to turn around its North American tire business to regain its financial footing.
To save money, the company refinanced its bank loans, eliminated its dividend, put its chemicals unit on the block and stopped matching employee retirement plan contributions.
Goodyear also has asked the United Steelworkers of America union for substantial concessions. The union, which made a contract offer over the weekend, has set Friday as the deadline for a tentative agreement.
On a positive note, Goodyear's North American shipments of consumer replacement tires rose in May, while industrywide shipments fell nearly 4 percent during the period.
The company's North American shipments to automakers declined more than the 8 percent industrywide drop. The fall was consistent with Goodyear's decision to eliminate unprofitable or low-margin businesses.