Goodyear earnings up for quarter and year

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Goodyear earnings up for quarter and year
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3 J, ^! U+ R5 P: x: U8 QWednesday, February 15, 2012
Akron, OH - Goodyear Tire & Rubber reported higher sales and earnings for both the fourth quarter of 2011 and the full year compared to the prior year. “I am very pleased with our record sales and segment operating income performance in 2011 as we successfully managed a challenging economic environment,” said Richard J. Kramer, chairman and chief executive officer. “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,” he added. “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,” Kramer said. Goodyear’s fourth quarter 2011 sales were $5.7 billion, up 12 percent from a year ago. Tire unit volumes totaled 43.2 million, down 5 percent from 2010, reflecting declining replacement industry volumes in mature markets along with business challenges in Latin America and flooding in Thailand. Goodyear’s fourth quarter 2011 net income available to common shareholders was $18 million (7 cents per share). The company recorded a net loss of $177 million (73 cents per share) in the 2010 fourth quarter. All per share amounts are diluted. Goodyear’s 2011 annual sales were a record $22.8 billion, up 21 percent from $18.8 billion in 2010. Sales reflect strong price/mix performance, which drove revenue per tire up 17 percent over 2010, excluding the impact of foreign currency translation. Sales were also positively impacted by an $875 million increase in sales in other tire-related businesses, primarily third-party chemical sales in North America. Tire unit volumes were essentially flat compared with 2010. Favorable foreign currency translation increased sales by $599 million. The sale of the Latin American farm tire business negatively impacted sales by $67 million. Goodyear’s 2011 net income available to common shareholders of $321 million ($1.26 per share) compares to a net loss of $216 million (89 cents per share) in 2010. All per share amounts are diluted.