Goodyear sets refinancing
Goodyear said in a regulatory filing that it netted about $884 million after selling $900 million in senior notes this week. The notes pay 6.5 percent interest and are due in 2021.
The Akron tire maker said substantially all of the proceeds will be used to fund its frozen U.S. pension plans. As part of a revamping of its pension funding, Goodyear Tire & Rubber Co. said it will shift the asset allocation of the frozen pensions to a fixed income securities portfolio. The changes will reduce Goodyear’s annual contributions to the frozen plans by about $125 million a year starting in 2014, the company said.
Separately, observers will note that Goodyear has gone paperless when it comes to patents.
The Akron tire maker is using technology from California-based software company First To File to create what is called an “Electronic File Room” to manage patent data prior to employees moving to Goodyear’s new corporate headquarters.
The new headquarters has limited space for paper files; Goodyear looked to eliminate paper usage, First To File said. Goodyear expects to have about 1,800 people working in the new headquarters, off Innovation Way in East Akron, by the end of March. The old headquarters complex on nearby East Market Street will be redeveloped.
TIRE & RUBBER
Findlay firm has recall
Hercules Tire is recalling some light-duty truck tires in the U.S. because the belts and treads can separate from the tires.
The recall covers 10-ply Load Range E tires in the company’s All Trac line. All the recalled tires are 16 or 17 inches in diameter. They are used mainly on commercial trucks.
Hercules says it’s still determining how many tires are affected. The tires were made in China and sold by Findlay-based Hercules. Hercules said in documents sent to government safety regulators that the separations could reduce a driver’s ability to control a vehicle. At least one crash was reported.
It was unclear if anyone has been hurt. Hercules will replace the tires for free. Owners may call 888-965-5795.
Home Depot profits up
For the period ended Feb. 3, Home Depot Inc. earned $1.02 billion, or 68 cents per share. That compares with $774 million, or 50 cents per share, a year ago. Analysts polled by FactSet expected 64 cents per share. Revenue climbed 14 percent to $18.25 billion from $16.01 billion, beating Wall Street’s estimate of $17.72 billion.
New home sales rise
New home sales jumped in January from the previous month to the highest level since July 2008. The Commerce Department said sales rose nearly 16 percent in January to a seasonally adjusted annual rate of 437,000. The percentage increase was the largest in nearly 20 years. December’s sales were revised higher to 378,000 from 369,000.
Steady job creation and near-record-low mortgage rates are spurring more Americans to buy houses. Sales of previously occupied homes rose to the highest level in five years last year.
At the same time, the number of previously occupied homes for sale is at a 13-year low. That shortage creates more demand for new homes. Builders began construction on the most houses and apartments in four years last year.
The supply of new homes for sale was unchanged last month at 150,000. That’s barely above August’s total of 143,000 — the smallest supply of new homes on records dating to 1963.
Job cuts at Chase
JPMorgan Chase & Co., the biggest U.S. bank which has Akron operations, expects headcount to decline by about 4,000 in 2013 as Chief Executive Officer Jamie Dimon targets mortgage operations for cuts.
That’s more than 1 percent of the staff at the New York-based bank, which had about 259,000 employees as of Dec. 31.
Dimon is seeking expense reductions of $1 billion after posting three straight years of record net income.
Dow has gain of 116
After losing 216.40 points in Monday’s session, the Dow Jones industrial average on Tuesday tallied its second triple-digit rise in three sessions, adding 115.96 points, or 0.8 percent, to 13,900.13. The S&P 500 index climbed 9.09 points, or 0.6 percent, to 1,496.94. The Nasdaq composite gained 13.40 points, or 0.4 percent, to 3,129.64, with shares of Apple Inc. up 1.4 percent.
Compiled from staff and wire reports