AKRON (Dec. 26, 2002) — Goodyear's shipments of consumer tires in November to customers in the North American and European Union replacement and original equipment markets lagged behind the industry performance, the company said in a monthly report to investors.
Higher operating costs related to manufacturing and an “unfavorable” price/mix relationship in the aftermarket were offset partially by lower transportation costs, improved profitability in the truck tire business and targeted cost control measures, Goodyear said.
In November, industry shipments of consumer tires to OE customers fell 1 percent from a year ago, but Goodyear's shipments fell more, as the Akron-based tire maker's previously announced strategy to disengage from non-profitable OE business took effect.
Industry shipments of replacement commercial tires in November were up 5 percent over last year´s levels, but Goodyear shipments grew slower than the market, the firm said. On the other hand, Goodyear's shipments of commercial tires to OE accounts increased 22 percent over last November due to better demand from trailer and intermediate duty truck makers.
Despite the lower shipments in November, Goodyear said its Goodyear and Dunlop brand replacement consumer market shares improved over October.
Bright spots for the firm were Eastern Europe and chemicals, where it reported that sales and earnings improved.