ERJ staff report (DS)
Akron. Ohio-- Goodyear Tire & Rubber has reported record first quarter sales and its highest first quarter net income in several years. The results look especially good as they compare with the first quarter of 2007, which was heavily affected by strike action in the company's North American factories.
Goodyear's first quarter 2008 sales were $4900 million, a 10 percent increase compared with the 2007 quarter, offsetting lower volumes with higher prices, a richer product mix and favorable currency translation.
Improved pricing and product mix in all four businesses drove revenue per tyre up 7 percent over the 2007 quarter, reflecting the company's successful strategy to focus on high-value-added tyres. Lower volume primarily resulted from weak original equipment markets in North America as well as soft consumer replacement demand in North America and Europe, particularly for low-value-added tyres.
Segment operating income for the Latin America and Asia Pacific businesses were records for any quarter. Segment operating income for the Europe, Middle East and Africa business was a first quarter record.
In Europe, Goodyear's EMEA region (Europe, Middle East and Africa) recorded sales of $1950 million, a record for any quarter and increased 16 percent over last year due to favorable currency translation, improved pricing and product mix and market share gains in the consumer replacement and commercial replacement markets.
Segment operating income in EMEA was a first quarter record, as $172 million and up 24 percent due to improved pricing and product mix of $40 million, which more than offset increased raw material costs of $4 million.
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Press release from Goodyear