Goodyear posts higher profits, record sales on quarter

ERJ staff report (TB)

Akron, Ohio -- Goodyear posted net income of $103 million for the first quarter, compared with a net loss of $47 million in the year-earlier period, while posting record sales of $5.4 billion.

The record revenues were a 27-percent improvement from the 2010 quarter as tyre unit volumes rose 7 percent to 46.8 million tyres.

Goodyear posted segment operating income of $327 million for the first quarter, up 36 percent from 2010. That reflected higher volume as well as an improved price/mix of $361 million, which nearly offset $385 million in higher raw material costs.

First-quarter sales, the company said, reflected a $219 million increase in volume. Sales benefited from a strong price/mix improvement, with revenue per tyre up 15 percent, excluding the impact of foreign currency translation.

Looking at the geographic results, sales in Goodyear's North American Tire (NAT) unit climbed 30 percent to $2.31 billion. NAT posted operating earnings of $40 million, compared with a $14 million loss for 2010's first quarter.

Improvement in NAT “is a critical element to achieving our targets,” said Chairman and CEO Richard Kramer. “North American Tire's first-quarter performance strengthens my confidence in our future.”

Sales for the Europe, Middle East and Africa region grew 28 percent to $1.96 billion. Operating income rose 28.8 percent to $153 million.

In Latin America, revenue increased 22 percent to $585 million. Operating earnings dropped 11.8 percent to $67 million.

Sales for Goodyear's Asia-Pacific region grew 14 percent to $551 million, with operating income down 2.9 percent to $67 million, the Akron-based tyre maker said.

From Tire Business (A Crain publication)

Press release from Goodyear

Goodyear Tire & Rubber's CEO Discusses Q1 2011 Results - Earnings Call Transcript from Seeking Alpha (US - Wall Street