Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Mid-Year Report
  • ADAS
  • News
    • OPINION
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • Humanitarian Award
    • RETAIL TIRES
    • SERVICE ZONE
    • TIRE MAKERS
    • Best Places to Work
    • RUSSIA WAR IN UKRAINE
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
June 18, 2004 02:00 AM

Goodyear reports quarter loss of $76.9 million; sales up 21%

Lisa Aichlmayr, Tire Business staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    AKRON (June 18, 2004) — Goodyear reported a net loss of $76.9 million in the first quarter—a 60.9-percent improvement from the $196.5 million loss in 2003's first quarter—plus record sales of $4.29 billion and improvements in segment operating income.

    Sales in the quarter were up 20.8 percent from last year's $3.55 billion, primarily on stronger volume, higher pricing, favorable product mix and $200 million from positive currency translation. Goodyear said its tire unit volume in the quarter was 55.7 million units, up from 52.6 million units in 2003. Total segment operating income also was up to $216.1 million from $42.0 million in 2003's first quarter.

    The Akron-based tire maker said improvements in operating results were somewhat offset by an increase of about $30 million in raw material costs compared with 2003's first quarter. The current quarter also included various rationalization charges.

    Goodyear will host a conference call with investors concerning these results at 11 a.m. June 21. Goodyear had originally planned to release the results June 16 with a conference call that day but said it needed more time. The results instead were released June 18.

    Six business units—including North American Tire—saw improvements in segment operating results though NAT still remains in the red. NAT's segment operating loss in the quarter was $31.7 million, improved from a loss of $66.5 million in 2003. Goodyear's largest unit also grew sales 10.8 percent to $1.76 billion from $1.59 billion last year, largely due to favorable pricing and product mix. Tire unit volume was slightly down to 24.7 million units from 24.8 million units.

    In NAT, Goodyear said its original equipment shipments increased less than 1 percent while replacement volume fell less than one percent. Goodyear said market share was down in the private label business.

    “Our operating results have improved dramatically as a result of strong volume, improved pricing and a richer product mix, as well as our cost reduction efforts and the strategies we are implementing to improve our business economics,” said Robert Keegan, chairman and CEO. “While challenges remain, we are pleased with the continuing success of our turnaround strategies and with our progress to date.”

    Mr. Keegan said those challenges include high levels of debt and unfunded pension obligations. Goodyear will work on these by refinancing to lengthen debt maturities, exploring potential asset sales to reduce obligations and seeking increased equity funding to improve Goodyear's credit profile.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Discount Tire installs RoboTire at Arizona store
    2
    Average executive salaries found in Tire Talent report
    3
    Midas, Big O franchisee LWG poised for growth
    4
    Clif Armstrong joins TBC as commercial sales director
    5
    Conti rolls out new taglines for Conti, General brands
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Mid-Year Report
    • ADAS
    • News
      • OPINION
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • Humanitarian Award
      • RETAIL TIRES
      • SERVICE ZONE
      • TIRE MAKERS
      • Best Places to Work
      • RUSSIA WAR IN UKRAINE
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION