Goodyear 's 2007 sales approach $20 billion, despite lower volumes

ERJ staff report (DS)

Akron, Ohio -- Goodyear Tire & Rubber Company has reported record sales for the three months and the twelve months ended 31 Dec., 2007. The company said sales outside the US had reached an all-time high. Lower volumes in all Goodyear's key sales sectors were offset by higher selling prices.

Goodyear said it generated sales of $19 644 million (Euro 13 483 million), up by 4.8 percent on the figure of $18 751 recorded a year ago. The company also reported a net income of $602 million, compared with a net loss of $330 million a year ago.

“Our fourth quarter results show significant gains as we drive sales of our higher-margin premium product lines,” said Robert Keegan, chairman and chief executive officer. “This is especially true in our emerging markets businesses in Eastern Europe, Asia and Latin America. In aggregate, these three businesses grew sales 20 percent and segment operating income 41 percent in the quarter,” he said.

Sales volume in western Europe fell to 59.4 million units, compared with 63.5 million in 2006. This was slightly offset by a small increase in eastern Europe, to 20.2 million units from 20.0 million. Despite the decline in unit sales, revenues in western Europe increased by almost 10 percent, to $5393 million, compared with $4990 million a year earlier. Revenues in Eastern Europe grew more strongly, to $1824 million compared with $1562 million in 2006. Goodyear said the improvement in western Europe was due to improved pricing and product mix and foreign currency translation, which more than offset the impact of lower volumes, primarily due to weak winter tyre demand.

The decline in North America was even more striking, with volumes falling over 10 percent, to 81.3 million units from 90.9 million. Improved prices were not enough to offset this and the company reports sales down fractionally at $8862 million compared with $9089 million the year before.

Goodyear also reported lower volumes in Asia-Pacific region, although higher prices offset this. The company said unit sales in the region fell to 19.0 million units from 19.4 million, but revenues increased to $1693 million from $1503 million

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Press release from Goodyear