Goodyear quarterly sales exceed $6bn for first time

ERJ staff report (LMH)

Akron, Ohio - Goodyear Tire & Rubber Co.'s third quarter net sales reached $6.1 billion (Euro 4.3 billion) for the first time, an increase of 22 percent from 2010. Tyre unit volumes totaled 47.7 million, unchanged from 2010.

Third quarter sales reflect strong price/mix performance, which drove revenue per tyre up 18 percent over the 2010 quarter, Goodyear said in its 28 Oct quarterly report. Sales were also impacted by a $221 million increase in sales in other tyre-related businesses, primarily chemical sales in North America, and favourable foreign currency translation of $175 million.

The company achieved segment operating income of $463 million in the third quarter, a record for any quarter. This was up $229 million from the year-ago period.

In the North American business, sales were $2557 million, up from $2176 million in Q3 2010. Operating income was $78 million, up from $5 million and the operating margin was 3.1 percent. Tyre unit volumes decreased by 8 percent to 16.6 million.

In EMEA (Europe, Middle East and Africa), Q3 sales increased by 31 percent to $2226 million and operating income was $260 million, up from $70 million the previous year. The operating margin was 11.7 percent.

In Latin America, Q3 sales increased by 14 percent to $651 million and operating income was $62 million, down from $95 million the previous year. The operating margin was down from 16.7 percent at 11.7 percent.

In Asia Pacific, Q3 sales increased by 21 percent to $628 million and operating income was $63 million, up from $57 million the previous year. The operating margin was down by 0.9 percent to 10 percent.

“I'm very pleased with our performance,” said Richard Kramer, CEO. “Our third quarter results are another step on the path toward our 2013 targets and especially meaningful given the challenging market conditions in much of the world.”

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Press release from Goodyear