Goodyear has strong first quarter

ERJ staff report (RD)

Akron, Ohio -- Goodyear Tire & Rubber Co. has reported 2010 first quarter year-on-year sales up by 21 percent to $4300 million.

First quarter sales reflect the $399 million impact of a 14-percent increase in tyre unit volume “due to improved global demand and growth in emerging markets,” a 28 April Goodyear statement said.

Sales were also positively impacted by $224 million in favorable foreign currency translation and by $125 million from higher sales in other tire-related businesses, primarily third-party chemical sales in North America.

Q1 operating income was up to $240 million from $176 million in the same period last year due to improved global demand and increased production levels. Q1 also benefited from £283 million in lower raw material costs, and $38 million from cost-cutting measures, Goodyear said.

“As markets around the world continue to improve, we are starting to see the benefits of the strategic actions we took last year, including our commitment to launch innovative new products during an economic downturn,” said Googyear's new ceo, Richard Kramer. “The strategic actions contributed to strong growth in both sales and earnings, positioning us well as the global economy continues its recovery.”

Kramer became Goodyear's president and chief executive officer 13 April, succeeding

Robert Keegan, who remains with the company as executive chairman.

In Europe, Middle East and Africa, first quarter sales increased 21 percent from last year to $1500 million, primarily due to a 14-percent increase in tyre unit volume and favorable foreign currency translation. North American Tire's first quarter 2010 sales increased 15 percent from last year to ?$1800 million, reflecting a 9 percent increase in tyre unit volume and strong price/mix performance.

Meanwhile, in Asia-Pacific and Latin America, Q1 year-on-year sales increased by 42 percent to $484 million and by 25 percent to $478 million, respectively.

“As I take over the role as the company's ceo, I am optimistic about the tyre industry and confident that Goodyear's brands, focus on innovation, leading distribution and excellent leadership team position us strongly for the future,” Kramer added.

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Press release from Goodyear Tire & Rubber Co.