AKRON (Nov. 5, 2004) — Goodyear expects to report record sales of $4.7 billion as well as earnings of 19 to 21 cents per share for the third quarter.
The company plans to release its third quarter results by Nov. 9.
Goodyear said the improvement is driven by better segment operating income in all seven of its business units. Total segment operating income is expected to double compared to the 2003 period, which saw total segment income of $146.7 million. The anticipated sales increase is up from $3.9 billion in the third quarter of 2003. Improved pricing and product mix plus higher unit volume contributed to the sales growth, the Akron-based tire maker said.
Goodyear said it also will file an amended 2003 10-K that will include additional disclosures on some of Goodyear's non-majority owned affiliates. At the same time, the tire maker is restating about $4.6 million in after-tax expense adjustments in prior periods, including the first and second quarters of 2004. The company said those adjustments were found as it implemented measures to improve its financial controls following larger restatements of results last year.
Additionally, Goodyear identified a misclassification of taxes on its balance sheet in 2003 that overstated both assets and liabilities by about $360 million each. The correction does not impact shareholders' equity, net income or cash flows.
“We look forward to reporting significant operating improvements across the board, demonstrating that we are on the right track to continue our turnaround,” said Robert Keegan, chairman and CEO. “At the same time, we are fully committed to accurate and transparent financial reporting, and we continue to implement stronger controls.”