GOODYEAR New tire will boost sales, analysts say

The company's stock rose as the news turned good.
AKRON (AP) -- Analysts say a new high-end tire to be sold soon by Goodyear Tire & amp; Rubber Co. could help put the struggling company back on track.
The Assurance all-weather passenger tire is planned to be unveiled next month at Goodyear's annual convention of dealers and distributors in Orlando, Fla.
"In our opinion, this is [Goodyear's] most important product launch in the last 10 years," Saul Ludwig, analyst at McDonald Investments in Cleveland, wrote in a report Wednesday.
Ludwig raised his recommendation on Goodyear shares from "underweight" to "hold," advice investors appeared to be taking.
Goodyear shares closed down 3.5 percent Thursday at $10.36. A day earlier, shares soared 12.9 percent, closing at $10.74 -- the first time the shares have closed above $10 since Sept. 23, 2002.
The stock has been battered for months by a steady string of negative news about restated earnings, accounting missteps and delays in stock and bond offerings. But shares have surged recently, setting new 52-week highs four times in the past two weeks and increasing 22 percent over the past five trading days.
The company has lost more than $339 million since 1998, blaming much of its earnings problems on slow tire sales and high raw material costs. Goodyear is in the middle of a turnaround plan it hopes will return the company to profitability this year.
Goodyear cut 20,000 jobs in recent years and last year reached a new contract with the United Steelworkers of America that allows it to make its North American plants more productive.
Not talking
The company is saying little about the Assurance tires, keeping specifics about features, price and mileage tightly under wraps.
"Are we introducing a new tire? We introduce new tires all the time," spokesman Chuck Sinclair said.
A teaser ad running in trade publications this month shows Goodyear billing the Assurance line as offering traction across a wide range of driving conditions.
Several dealers say they look forward to the new line.
"I think it's a smart move for Goodyear," said Jerry Borodkin, co-owner of Fairfield Tire & amp; Auto Center in Fairfield, Conn. "The company is trying to eliminate some old tire lines and come out with something exciting. They're going to put a lot of money and effort behind it."