Goodyear: Net loss grows to 332.4 million $ for the first 9 months

Tyre manufacturer Goodyear announced a net loss of 332.4 million US Dollars for the first nine months of this year. The net loss for the 3rd Quarter totalled $105.9 million. Sales in the last quarter rose around eleven per cent from 3.5 to 3.9 billion Dollars. However, volumes increased only by approximately two per cent from $54.4 (3Q 2002) to $55.3 million (3Q 2003). According to Goodyear, the turnover increased partly due to currency-exchanges and partly due to an improved product-mix. CEO Keegan is of the opinion that the efforts of the last months are bearing fruit. Nevertheless the fact is that the company disappointed again on the full line.

The problem continues to lie in North America, where the operational loss increased by a further $31.8 million to now stand at 100 million Dollars. Compared with the first nine months of the previous year, Goodyear’s volume rose only by three per cent. In the 3rd quarter the North American Tire Division managed a growth of 4.1 per cent in volume, but it has been pointed out that the market as a whole grew by 6 per cent.

Turnover in Western Europe rose from 2.39 billion to 2.88 billion Dollars in the first nine months, which was mainly due to currency changes. The operating income rose from 82.4 to 110.6 million Dollars and is again entirely due to the German tyre business, especially the Fulda brand, which showed the strongest improvements among all other Group brands. But Goodyear/Germany and Dunlop/Deutschland also set new record heights. The operating income of the German activities exceeds the operating income of the entire Western European region, so that it is easy – and correct – to assume that the businesses in France and Great Britain remained catastrophically bad.

Also the Eastern European region performed very well. Turnover rose from 579 to 779 million Dollars in the first nine months and the operating income from 62.6 to 98.1 million Dollars. The region sold 1.8 million units more than in the comparable period for the previous year. Analysts said in a preliminary statement that they have not seen signs of a turnaround yet. Even if the management was able to manage a turnaround they can see little potential for Goodyear shares. The dark clouds around the Goodyear company continue to gather.