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Goodyear Warns Pension Expenses Could Rise$100 Million In 2003

That increase could be $100 million if pension assets return 10%. Through September 30, the return as been 17.5%. Goodyear CEO Sam Gibara said pension costs will need to be offset, adding the company plans to do this through productivity

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That increase could be $100 million if pension assets return -10%. Through September 30, the return as been -17.5%.

Goodyear CEO Sam Gibara said pension costs will need to be offset, adding the company plans to do this through productivity gains in its tire plants.

Additonally, the company is projecting a $2 billion pension underfunding at the end of the year. The pension was underfunded $1 billion in 2001.

Separately, Friendly Ice Cream Corp. estimates that its defined benefit pension plan will be underfunded by about $18 million by the end of the year as a result of declines in interest rates and the stock market. The SEC filing indicated the firm would likely be required to record a charge to stockholders’ deficit as a result of the underfunding, according to Dow Jones.

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