Goodyear in red despite robust sales

A Rubber and Plastics News staff report, a Crain publication

Akron, Ohio - Goodyear suffered a $20 million third-quarter loss even though sales jumped 13 percent to $4.96 billion, the firm's highest quarterly mark since the third quarter of 2008.

The company said its tyre unit volumes rose 6 percent, and sales also benefited from price/mix improvements. However, higher raw material costs impacted profits, and unfavourable foreign currency translation also reduced sales.

Goodyear posted net profits of $72 million in the corresponding quarter of 2009.

For the first nine months of 2010, the firm said it reduced its net loss to $39 million from the $482 million posted for the first three quarters of 2009.

The company's Europe, Middle East and Africa tyre division showed a 27.4-percent decline in operating income to $77 million, despite a 7.2-percent rise in sales. In Latin America, segment operating profits fell 4 percent to $95 million while sales rose 17.1 percent to $569 million for the quarter.

Goodyear reported a 16.2-percent falloff in operating income for the three months for its Asia Pacific business, although sales rose 14.3 percent to $521 million.

In North America, the company said its sales rose 17 percent from last year to $2.2 billion, the highest since the third quarter of 2008, reflecting a 5-percent in crease in unit volume, improved price/ mix and brand share gains in the consumer aftermarket, plus a 12-percent rise in original equipment volume. Aftermarket tyre shipments rose 3 percent, the company said.

Operating income rose $3 million form the previous year to $5 million for the segment.

The company's Europe, Middle East and Africa tire division showed a 27.4-percent decline in operating income to $77 million, despite a 7.2-percent rise in sales. In Latin America, segment operating profits fell 4 percent to $95 million while sales rose 17.1 percent to $569 million for the quarter.

Goodyear reported a 16.2-percent falloff in operating income for the three months for its Asia Pacific business, although sales rose 14.3 percent to $521 million.