Goodyear sales/volumes down in third quarter results
At the close of last week, Goodyear Tire & Rubber Company reported results for the third quarter of 2012 showing improved North American operating of US$130 million (up 67 per cent year-on-year), but also significant volume decline (down 12 per cent year-on-year).
Goodyear’s third quarter 2012 sales were $5.3 billion, down 13 per cent from last, reportedly reflecting $592 million in lower tyre unit volumes and $258 million in unfavourable foreign currency translation. Tire unit volumes totalled 41.8 million, down 12 per cent from 2011, primarily reflecting weaker volumes in Europe. However, sales benefitted from price/mix improvements, which drove revenue per tire up 5 percent over the 2011 quarter, excluding the impact of foreign currency translation.
“We achieved solid segment operating income in the third quarter, driven by our performance in North America,” said Richard J. Kramer, chairman and chief executive officer. “While we were impacted by the macroeconomic challenges we face in Europe, we continue to see the benefits of our actions to sustain profit margins in a weak volume environment,” he added.
Kramer said that with the company’s third quarter performance, it has essentially achieved its target of $1 billion in cost savings ahead of plan. Goodyear will take additional cost reduction actions because of ongoing economic uncertainty and expects to exceed its three-year cost savings goal.
“The structural improvements we made in our North American business are producing results that now put it on track to not only meet, but exceed, its 2013 operating income target a year early,” Kramer said. “Our 2012 results demonstrate strong progress toward delivering profit throughout the economic cycle and generating sustainable value for shareholders.”