Akron, Ohio - Sparked by improved pricing and product mix, Goodyear reported record third quarter sales of $5100 million and income from continuing operations of $159 million, compared to a loss in the like period last year.
Chairman and CEO Robert Keegan said in the company's quarterly financial report that the tyre maker also has made further progress during the quarter on its plan to gain between $1800 million and $2000 million in cost savings by the end of 2009, noting that the firm has achieved $900 million in savings thus far and remains on track to hit its goal.
Sales for the period rose 3 percent while the $159 million in net earnings from continuing operations was a significant improvement from the $76 million loss reported in the third quarter of 2006. Net income from all operations, including those discontinued, was $668 million, compared with a loss of $48 million last year.
Included in the discontinued units was a gain of $517 million on the sale of Goodyear's Engineered Products business, which was acquired by the Carlyle Group in August for about $1500 million.
â€œOur outstanding third quarter is evidence of the success we are seeing in marketing our premium product lines while remaining focused on improving our cost structure,â€ Mr. Keegan said in a prepared statement. â€œDespite market challenges, our results are among the best ever achieved by Goodyear.â€
From Tire Business (A Crain publication)
Q3 press release from Goodyear