Goodyear Announces Record Full-Year Sales

(Akron/Tire Review) The Goodyear Tire & Rubber Co announced that its net sales for 2004 were a record $18.4 billion, an increase of 21 per cent over 2003. Tyre volume in 2004 was 223 million units, which was up 5 per cent from 2003. Goodyear’s net income in 2004 was $115 million, compared to a net loss of $807 million in 2003. The company estimated that raw material cost increases negatively impacted 2004 earnings by $280 million but that currency translation had a positive impact of approximately $30 million.

Additionally, Goodyear’s fourth quarter results showed positive net income of $125 million and record sales of $4.8 billion. “Sales benefited from the consolidation of two subsidiaries…improved pricing and product mix, higher volume and favourable currency translation,” Goodyear said.

European Union Tire’s sales increased 17 per cent and reached a record for any quarter. The company also says that it is performing well in targeted product segments, including the emerging run-flat market. Operating income increased 185 per cent during the quarter due to strong pricing and product mix, partially offset by higher advertising expense related to new product introductions and higher raw material costs. The 2003 quarter included an unfavourable labor settlement of approximately $13 million, the company added.

Sales for Goodyear’s North American Tire (NAT) Division reached $7.85 billion for the full year and $2 billion for the fourth quarter. NAT sales for the fourth quarter were up 21 per cent compared to the 2003 period, Goodyear said. Fourth quarter segment operating income was $16 million, compared to a loss of $15 million in 2003. For the full year, segment operating income was $32 million, compared to a loss in 2003 of $131 million.