AKRON-Goodyear and Cooper Tire & Rubber Co. reported record net income and sales for the year ended Dec. 31, while TBC Corp. said its year-end net income and sales results dipped below 1993 levels. All three companies recently released their fourth-quarter and year-end results.
Surging tire sales and Goodyear's prospering oil pipeline system helped offset the negative effects of escalating raw materials and labor costs, contributing significantly to the tire maker's record sales and earnings for 1994.
Goodyear ended the year with a 5.5-percent increase in sales to $12.3 billion, compared with 1993, as net income climbed 46.2 percent to $567 million from $387.8 million in 1993.
Goodyear boosted annual tire unit sales 7.1 percent over 1993, netting records in both the original equipment and replacement markets.
However, competitive pricing and increased raw material prices and labor costs caused the cost of goods sold as a percent of sales to increase to 75.5 percent in 1994 from 74.8 percent.
For the fourth quarter, worldwide sales rose 10.1 percent to $3.2 billion compared with the year-ago period, as net income jumped 20.6 percent to $136.5 million.
Goodyear's tires segment netted a record $1 billion in operating income for the year as sales climbed 5.5 percent to $10.5 billion compared with the previous year.
However, for the fourth quarter, the segment's operating income dropped 6.6 percent to $229.6 million, due to escalating raw material and labor costs and reduced interest income from time deposits held by the company in Brazil, officials said.
Despite Goodyear's report of record sales and earnings on Feb. 8, the company's share price fell $1, closing the day at 357/8.
Cooper Chairman and CEO Patrick W. Rooney credited strong markets and employee performance with the record net income and sales figures the company posted in 1994.
The Findlay, Ohio-based tire maker boosted year-end net income to a record $128.5 million, up 25.7 percent over 1993.
Net sales reached a record $1.4 billion for the year, up 17.7 percent over the prior year sales of $1.2 billion, the company said.
Cooper also reported a decline in capital expenditures during 1994 to $78.4 million from $117.2 million in 1993. But Mr. Rooney attributed this to a matter of project timing.
``We are continuing to invest all the necessary funds for expansions and technology to keep us in a leading position in our industry,'' he said.
For the fourth quarter, Cooper's sales grew 22.5 percent to $361.3 million vs. $294.9 million in the comparable 1993 period. Net income during the quarter jumped 40.5 percent to $39.1 million from $27.8 million in 1993.
Despite strong fourth-quarter earnings, TBC reported its 1994 net income and sales figures were down from a year ago.
For the year, TBC's net income totaled $19.5 million compared with $21.4 million in 1993. Net sales for the same period dipped nearly 3 percent to $551.9 million from $568.7 million a year ago.
Net income for the fourth quarter increased 6.1 percent to $5.2 million vs. $4.9 million during the comparable 1993 period. Fourth quarter net sales dropped 1.5 percent to $127.7 million from $129.6 million a year ago, the company reported.