The Goodyear Tire & Rubber Company today reported third quarter 2010 sales and tire unit volumes that were the highest achieved since the third quarter of 2008.
The company had segment operating income of $234 million in the third quarter of 2010, down $41 million from the year-ago quarter. Segment operating income reflected improved price/mix of $252 million and the benefits of higher volume (including unabsorbed overhead recovery) of $125 million, which were more than offset by $381 million in net higher raw material costs ($412 million before raw material cost reduction actions). Unfavorable foreign currency translation reduced segment operating income by $20 million.
The 2010 third quarter included charges of $56 million (23 cents per share) for cash premiums and write-offs of deferred financing fees related to the early redemption of debt, $10 million (4 cents per share) due to rationalizations, asset write-offs and accelerated depreciation, $4 million (2 cents per share) related to a supply disruption, and $3 million (1 cent per share) resulting from a strike in South Africa; and gains of $13 million (6 cents per share) due to tax benefits, and $8 million (3 cents per share) on an insurance recovery. All amounts are after taxes and minority interest.
Goodyear’s third quarter 2010 net loss was $20 million (8 cents per share), compared with net income of $72 million (30 cents per share) in the 2009 quarter. All per share amounts are diluted.
Asia Pacific Tire’s third quarter sales increased 14 percent from last year to $521 million, which were the highest ever achieved in any quarter. Sales reflect an 8 percent increase in tire unit volume. Original equipment unit volume increased 15 percent. Replacement tire shipments were up 3 percent. Favorable foreign currency translation increased sales by $30 million.
Segment operating income of $57 million was $11 million lower than last year. The 2010 quarter was positively impacted by $23 million in improved price/mix and higher volume. Raw material costs increased $35 million over last year.
The 2010 third quarter included charges of $56 million (23 cents per share) for cash premiums and write-offs of deferred financing fees related to the early redemption of debt, $10 million (4 cents per share) due to rationalizations, asset write-offs and accelerated depreciation, $4 million (2 cents per share) related to a supply disruption, and $3 million (1 cent per share) resulting from a strike in South Africa; and gains of $13 million (6 cents per share) due to tax benefits, and $8 million (3 cents per share) on an insurance recovery. All amounts are after taxes and minority interest.
Goodyear’s third quarter 2010 net loss was $20 million (8 cents per share), compared with net income of $72 million (30 cents per share) in the 2009 quarter. All per share amounts are diluted.
Asia Pacific Tire’s third quarter sales increased 14 percent from last year to $521 million, which were the highest ever achieved in any quarter. Sales reflect an 8 percent increase in tire unit volume. Original equipment unit volume increased 15 percent. Replacement tire shipments were up 3 percent. Favorable foreign currency translation increased sales by $30 million.
Segment operating income of $57 million was $11 million lower than last year. The 2010 quarter was positively impacted by $23 million in improved price/mix and higher volume. Raw material costs increased $35 million over last year.
Goodyear’s third quarter 2010 sales were $5 billion, up 13 percent from the 2009 quarter. Tire unit volumes totaled 47.7 million, up 6 percent from last year.
Third quarter sales reflect the $211 million impact of the increase in volume. Sales benefited from price/mix improvements, which drove revenue per tire, excluding the impact of foreign currency translation, up 8 percent over the 2009 quarter despite higher original equipment sales. Sales were also impacted positively by higher sales in other tire-related businesses, primarily third-party chemical sales in North America. Unfavorable foreign currency translation reduced sales by $88 million.
Third quarter sales reflect the $211 million impact of the increase in volume. Sales benefited from price/mix improvements, which drove revenue per tire, excluding the impact of foreign currency translation, up 8 percent over the 2009 quarter despite higher original equipment sales. Sales were also impacted positively by higher sales in other tire-related businesses, primarily third-party chemical sales in North America. Unfavorable foreign currency translation reduced sales by $88 million.
During the third quarter, Goodyear’s Assurance Fuel Max tire exceeded three million units sold in North America since its introduction in 2009. Fuel Max tires were recently introduced in Latin America and Asia Pacific markets.
Goodyear- and Dunlop-brand winter tires excelled in recent winter tire tests in Europe, including taking four of the top five spots in testing by Germany’s highly respected ADAC motor club. These independent tests are important factors in European motorists’ winter tire buying decisions.
Goodyear- and Dunlop-brand winter tires excelled in recent winter tire tests in Europe, including taking four of the top five spots in testing by Germany’s highly respected ADAC motor club. These independent tests are important factors in European motorists’ winter tire buying decisions.
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