Goodyear announces 2009 performance
The Goodyear Tire & Rubber Company today announced its performance for the year 2009, specifically focusing on the fourth quarter, in which the company recorded a 7% year-on-year increase in sales from Q4 2008.
“Our fourth quarter results were solid, with improved gross margins, segment operating income and net income reflecting lower raw material costs, improved volumes and actions to reduce costs. These gains are a reflection of the success we had in strengthening our business despite a challenging economy and operating environment,” said Robert J. Keegan, chairman and chief executive officer.
“Tire demand around the world has begun to recover and we look forward to year-over-year global growth in 2010. The degree of recovery, however, varies considerably by geography and product segment. We remain confident, but many challenges, including high raw material costs and weak commercial truck tire demand, will persist in 2010,” he said. “Goodyear’s strong market position and growing capabilities will, however, enable us to fully capitalize on the attractive market opportunities available to us.”
For Q4-2009, the company chalked up a total sales of US$4.4b despite reduced commercial tyre demand in Europe and North America. Helping the company’s cause was improved demand from consumers in emerging market, and also favourable exchange rates, which on its own, helped to add US$310m to the company’s balance sheet. As a result, Goodyear’s net income for Q4-2009 stood at US$107m, compared to a significantly more dismal Q4-2008, which saw the company lose US$330m.
For the entire year, Goodyear’s annual sales were at US$16.3b, down from US$19.5b achieved in 2008. For the overall year 2009, the company made a net loss of US$375m, compared to a US$77m loss in 2008. The company’s target of launching 50 new products for 2009 was exceeded, with 62 new products launched.
In the Asia Pacific region, the company’s fourth quarter sales of 2009 increased by 28% from US$381m in Q4-2008 to US$486m. Year-long, however, saw a sales decline from US$1.8b in 2008 to US$1.7b in 2009.
“We are very pleased that Goodyear in Asia achieved its highest ever earnings performance in the fourth quarter and the full year of 2009,” said Pierre E. Cohade, president of Asia Pacific. “Despite the uncertainties and challenges of 2009, Goodyear continues to build a strong momentum in Asia as we mobilize to fuel more growth across the region, beginning with China, which has now become the largest passenger vehicle market in the world,” he added.
“Last quarter’s performance was also underscored with more awards and recognitions from our OE partners and for our new products such as Eagle F1 Asymmetric, Assurance and DuraPlus tires in highly competitive markets like Australia and China,” said Cohade. “By constantly innovating in our product portfolio and across other areas of the business, we not only make Goodyear a highly competitive brand but a very relevant one as well for our consumers and customers. I wish to thank all our hardworking associates and valued customers for these achievements.”
In 2009, Goodyear was notably supportive of motorsports and road safety initiatives. In October, the Goodyear Dragster was entered to participate in the Sepang Drag Battle. They also served as title sponsor for the hugely popular Formula Drift series held throughout the region. Recently, Goodyear dealers also signed a pledge with the Road Safety Department to cooperate with the ban on selling re-grooved tyres.
