Goodyear reports best in history quarterly earnings

Goodyear has recently published its sales and earnings figures for the third quarter of 2011. Grossing US$6.1 billion worldwide, Q3 2011 goes down on record as the company’s strongest ever quarterly performance.

“All four of our tire businesses set all-time quarterly sales records as our teams did an excellent job offsetting higher raw material costs with improved price/mix and selling new, innovative products in targeted market segments,” said Richard J. Kramer, chairman and chief executive officer.

Although unit sales remain unchanged from 2010 at 47.7 tyres, earnings went up by 22% over the same period, exceeding the US$6 billion mark for the first time in the company’s history. Factors influencing this include successful reduction in costs as well as favourable currency fluctuations, which accounted for additional earnings of US$175 million. There is also a US$221 million increase in the company’s other tyre-related businesses.

Segment operating income is reported to be US$463 million for the quarter, which is another company record. Net income available to common shareholders was US$161 million (60 cents per share), also highest in the company’s history.

Zooming in on the Asia Pacific region, news is similarly bright, with a 21% year-on-year sales increase leading to a record US$628 million quarterly earning. Although there was a 2% decrease in tyre volume sales, favourable exchange rates helped bring an extra US$45 million on the table. Segment operating income of the region was reported to be US$63 million.

“We achieved record revenues fueled by the demand from China and India, coupled with our OTR business that supports the mining industry. Even with incremental start-up expenses associated with the ramp-up of our new factory in Pulandian, China, we delivered year-over-year segment operating income growth for the third quarter of 2011,” said Pierre E. Cohade, president of Goodyear Asia Pacific.

KON