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.
â€œI'm very pleased with our performance,â€ said Richard Kramer, CEO. â€œOur 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.â€
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Press release from Goodyear