Good Year reports record sales and higher earnings for fourth quarter

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(added few years ago!)

The Goodyear Tire & Rubber Company has reported higher sales and earnings for both the fourth quarter of 2011 and the full year compared to the prior year.

Richard J. Kramer, chairman and chief executive officer  said “I am very pleased with our record sales and segment operating income performance in 2011 as we successfully managed a challenging economic environment. With full-year segment operating income of nearly $1.4 billion worldwide and $276 million in North American Tire, its best performance since 2000, we made strong progress toward our 2013 targets. Despite lower fourth quarter unit volume, all four of our tire businesses achieved record fourth quarter and full-year sales as we improved price/mix and gained branded share in our targeted market segments. We feel good about the progress we have made in improving our business model and remain confident in our long-term strategy.”

Goodyear’s fourth quarter 2011 sales were up 12 percent from a year ago. Tire unit volumes totaled  down 5 percent from 2010, reflecting declining replacement industry volumes in mature markets along with business challenges in Latin America and flooding in Thailand. Fourth quarter sales reflect strong price/mix performance, which drove revenue per tire up 19 percent year-over-year, excluding the impact of foreign currency translation.

Segment operating income was negatively impacted by $37 million in lower volume and $19 million due to lower profits from other tire-related businesses, primarily third-party chemical sales in North America. Costs resulting from business disruptions and the temporary closure of the company’s factory in Thailand due to flooding in that country also negatively impacted segment operating income. Cost inflation along with higher North American Tire profit sharing, inefficiencies related to a plant closing in North America and poor productivity at factories in France more than offset the benefit of cost saving programs.

Tags : Good Year, Richard J. Kramer, 2011, Goodyear Tire & Rubber Company

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(added few years ago!) / 750 views
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