AKRON (July 21, 2004) — Goodyear expects to report a nearly 20-percent jump in sales as well as a finally profitable North American Tire unit when it reports its second quarter results Aug. 5.
The tire maker also has decided not to sell its chemical division.
Goodyear said its second quarter forecast—which predicts an 18.4-percent rise in sales to $4.5 billion vs. $3.8 billion in last year's second quarter—reflects higher volume, improved pricing and product mix and other factors. The company will discuss its quarterly results in a conference call at 9 a.m., which can be accessed via the company's Web site, www.goodyear.com.
Goodyear said all seven of its business units expect to report positive segment operating results in the second quarter. A spokesman said that means North American Tire should be in the black after many quarters in the red. He declined to say how big the profit might be.
“While we are pleased with our year-to-date operating results, challenges remain, including high levels of debt and unfunded pension obligations, which we are addressing with specific strategies,” said Robert Keegan, chairman and CEO.
The tire maker also said it has concluded its exploration into the sale of its chemical business.
“Given its improved earnings, we believe the cash flows and cost advantages Goodyear derives from the chemical business, as well as its positive contributions to the tire businesses, outweigh the benefits of a potential sale,” Mr. Keegan said. “The current and projected raw material market reinforces this decision.”