AKRON-A slump in original equipment sales and competitive pricing in the North American replacement market hampered Goodyear's overall sales for the third quarter, despite a jump in net income. The tire maker announced third quarter earnings of $170.2 million, an 8.1-percent increase over the year-ago period, on sales of $3.27 billion, a drop of 1.2 percent.
Goodyear said worldwide tire unit sales and ongoing cost containment measures bolstered earnings, but revenue growth was aggravated by North American market conditions-lower sales of original equipment tires, competitive pricing pressures in the replacement market and an unfavorable translation of international currencies due to a stronger U.S. dollar.
``Our results were led by Goodyear operations in Europe and Latin America and also reflect lower raw material prices,'' said Goodyear Chairman and CEO Samir Gibara.
``The engineered products business also made a significant contribution to our quarterly efforts,'' he said.
``In addition, efforts to adjust production schedules to better reflect market requirements resulted in lower inventory levels during the quarter.''
For the first nine months of 1996, the company boosted net income 9.8 percent to $509.9 million, on sales of $9.84 billion, a slight decrease from the same period in 1995.
Worldwide tire unit sales during the quarter jumped 6.1 percent, compared with the year-earlier quarter, led by strong sales in Europe, Latin America and Asia, the company said. In the U.S., meanwhile, tire unit sales remained flat.
For the nine-month period, worldwide tire unit sales increased 4.8 percent, while in the U.S., tire sales dipped 1.7 percent.
Domestically, Akron-based Goodyear's third-quarter sales fell 3.3 percent to $1.78 billion, compared with the year-ago period, as operating income dropped 4.8 percent to $136.4 million, which included $6.8 million in consolidation costs.
For the nine-month period, U.S. sales slipped 3.6 percent to $5.3 billion, as operating income tumbled 7.3 percent to $396.7 million, compared with the 1995 period.