Goodyear Sales Up Despite Lower Volumes
The Goodyear Tire & Rubber Company has reported record third quarter sales of US$5.1 billion, up 3 per cent from last year. The company’s Asia Pacific Tire, Latin American Tire, European Union Tire, and Eastern Europe, Middle East and Africa Tire divisions all achieved record sales during the quarter despite Latin America being the only region to actually sell a greater volume of tyres. Goodyear claims it has successfully offset lower volumes through price increases and a richer product mix. These price and product mix changes in all five business units led to a 7 per cent increase in revenue per tyre over the 2006 quarter, and Goodyear adds that the quarter’s lower sales volume – 51.7 million tyres worldwide as opposed to 55.8 million in third quarter 2006 – reflects the company’s strategic decision to quit “certain segments” of the North American private label tyre market, along with other weak markets.
Total segment operating income from continuing operations was $382 million in the third quarter of 2007, another all-time high and up 35 per cent from the 2006 period. All five business units had higher segment operating income compared to last year, with Asia Pacific Tire and Eastern Europe, Middle East and Africa Tire setting records for any quarter.