Slight Rise In Turnover For Goodyear In Third Quarter

The Goodyear Tire & Rubber Company has announced its financial figures for the third quarter and the first nine months of the year. The figures in brackets in this article refer to the comparable periods for the year 2000. Worldwide turnover for Q3 was up slightly at $3.

7 bn ($3.6 bn), but net income was down 45.2 per cent to $9.

3 m ($17m). For the first nine months, turnover was $10.7 bn ($10.

9 bn) and Goodyear’s net loss was $29.6 m (net profit of $142.3 m).

The negative effect of currency movements on operating income during this year’s first nine months is estimated to be around $70 million, with $20 m of this in the third quarter. Chairman and CEO Sam Gibara said: “Because of a general economic slowdown, market conditions were tough in many regions during the quarter.” There was, however a ray of hope, as Gibara continued: “In the important North America consumer replacement tyre market, Goodyear outperformed the industry, ending the quarter with a three percentage point gain in market share.

” Tyre unit volumes were 164.8 million units, down 1.7 per cent on the first nine months of last year.

To counter the difficult economic environment, Goodyear cut back production, reduced inventory and pursued a cost reduction programme. As part of the latter, around 7,800 jobs are scheduled to be lost this year, with 7,500 having already gone in the first nine months. Below are the individual performances of the various business segments.

Replacement market volumes increased 5 per cent for the quarter and 3.7 per cent for the nine months. This sector was affected by the demand for tyres following the Firestone tyre recalls.

OE volumes were down 6.7 per cent for the quarter and 14.3 per cent for the nine months.

Replacement market volumes decreased 4.4 per cent for the quarter and 3 per cent for the nine months. OE volumes rose 14.

1 per cent for the quarter and 9.8 per cent for the nine months. Currency movements during the first nine months of 2001 effectively reduced sales by $110 million and operating income by $10 million.

Replacement market volumes decreased 20.7 per cent for the quarter and 10.8 per cent for the nine months.

OE volumes decreased 25.8 per cent for the quarter and 16.4 per cent for the nine months.

Currency movements had a negative impact on sales in 2001 equivalent to $35 million for the quarter and $85 million for the nine months. The negative effect on operating income was $5 million for the quarter and $25 million for the nine months. Replacement market volumes fell 6.

6 per cent for the quarter and 7.1 per cent for the nine months. OE volumes increased 4.

5 per cent for the quarter and 26.2 per cent for the nine months. The estimated negative currency impact on sales was $30 m for the quarter and $75 million for the nine months.

On operating income, the negative impacts were $10 million (Q3) and $25 million (nine months).Replacement market volumes fell 0.3 per cent for the quarter and 3.

8 per cent for the nine months. OE volumes increased 17.4 per cent for the quarter and 14.

2 per cent for the nine months. The estimated negative currency impact on sales was $10 million for the quarter and $35 million for the nine months. On operating income, the negative impacts were $5 million (Q3) and $15 million (nine months).