AKRON (Aug. 5, 2004) — Goodyear reported net income of $25.1 million for the second quarter — its first profit since the third quarer of 2002 — with its North American Tire (NAT) unit also in the black.
NAT posted a segment operating income of $30.4 million, up from a loss of $10.2 million in 2003. Overall, Goodyear posted a net loss of $53 million in 2003.
Sales in the quarter were a record $4.51 billion, a 20.1-percent increase from $3.75 billion a year before. The increase in sales reflects improved pricing and product mix as well as higher unit volume, the Akron-based tire maker said.
Tire unit volume in the quarter was 55 million units, up 4.2 percent from 52.8 million units in 2003.
NAT reported a 17.2-percent jump in sales, to $1.98 billion, although more than half of the gain is attributable to the first-time consolidation of T&WA Inc., a tire-wheel assembly venture. NAT tire unit volume was up 1.6 percent during the quarter to 25.7 million.
NAT sales for the six months were up 14.3 percent, to $3.75 billion, while unit sales were up only 0.6 percent to 50.4 million.
Goodyear also said all seven of its business units posted profits, with total segment operating income up 91.7 percent to $285.8 million.
For the first half of the year, Goodyear posted sales of $8.8 billion, up 20.6 percent from $7.3 billion in 2003. Tire unit volume was 110.7 million units, up 5 percent from 105.4 million units a year ago.
However, Goodyear still posted a net loss for the first half of $51.8 million, though it was improved from a loss of $249.5 million last year.
“While we still have work to do, we are pleased by the success we have achieved to date, particularly the traction we are gaining in our North American Tire business, which is reporting a quarterly profit for the first time in nearly two years,” said Robert Keegan, chairman and CEO.