AKRON, Ohio – The Goodyear Tire & Rubber Co. has reported higher earnings for the first quarter of 2013, as compared to the year-ago quarter.
"Despite a tough economic environment, we continue to achieve solid earnings improvement," said Richard Kramer, chairman and CEO. "Our first quarter earnings demonstrate that our strategic focus on improving productivity and selling innovative products in targeted market segments where our brands add value is working, especially in North America, where our business continues to outperform expectations."
Three of Goodyear’s four regional businesses posted higher earnings with North America and Asia Pacific posting record first quarter operating income, according to the company. Asia Pacific and Latin America achieved both increased tire unit volume and higher operating income.
"In Europe, we are taking steps to address weak industry demand brought about by recessionary conditions that continue to impact the auto and tire industries. We are executing a three-point plan to address profitability in this region," Kramer added. "We remain confident in our full-year outlook and continue to expect global segment operating income of $1.4 billion to $1.5 billion in 2013, which would be up more than 12 percent from 2012 and a record. The company continues to target positive cash flow in 2013, excluding pension pre-funding."
Goodyear’s first quarter 2013 sales were $4.9 billion, compared to $5.5 billion a year ago. The company said first quarter 2013 sales reflect $364 million in lower tire unit volumes; $178 million in lower sales in other tire related businesses, most notably third party chemical sales in North America, and $115 million in unfavorable foreign currency translation.
Goodyear’s first quarter 2013 net income available to common shareholders was $26 million (10 cents per share), compared to a net loss of $11 million (5 cents per share) in the 2012 quarter. All per share amounts are diluted.
