Goodyear Reports Third Quarter Results - aftermarketNews

Goodyear Reports Third Quarter Results

The company's third quarter sales of $5.2 billion increased 2 percent from last year as improved pricing, a richer product mix and strength in international markets more than offset lower volume, most notably in North America and Europe.

AKRON, Ohio — Goodyear Tire & Rubber Co. has reported record third quarter sales that the tiremaker says were driven by growth in international markets.

The company’s third quarter sales of $5.2 billion increased 2 percent from last year as improved pricing, a richer product mix and strength in international markets more than offset lower volume, most notably in North America and Europe. Also impacting sales was the 2007 divestiture of the company’s T&WA tire mounting business, which contributed sales of $145 million in last year’s third quarter.

Third quarter 2008 income from continuing operations was $31 million (13 cents per share). This compares to $159 million (67 cents per share) last year. Goodyear had net income of $668 million ($2.75 per share) in the 2007 third quarter, including a gain of $517 million ($2.12 per share) on the sale of its former Engineered Products business. All per share amounts are diluted.

The 2008 quarter was impacted by net rationalization charges and accelerated depreciation of $46 million (19 cents per share), a loss on settlement of postretirement healthcare obligations in connection with the establishment of a Voluntary Employees’ Beneficiary Association (VEBA) of $13 million (5 cents per share), expenses related to Hurricanes Gustav and Ike of $7 million (3 cents per share), discrete net tax charges related primarily to German operations of $6 million (2 cents per share), charges related to the exit of its Moroccan business of $5 million (2 cents per share) and a gain on asset sales of $2 million (1 cent per share). All amounts are after taxes and minority interest.

Goodyear’s sales for the first nine months of 2008 were a record $15.4 billion, a 6 percent increase over 2007 despite a 5 percent decline in tire unit volume. Impacting sales was the 2007 divestiture of the company’s T&WA tire mounting business, which contributed sales of $481 million in the first nine months of 2007.

Income from continuing operations for the first nine months of 2008 was $253 million ($1.04 per share). This compares to $78 million (39 cents per share) last year. Goodyear had net income of $550 million ($2.44 per share) in the first nine months of 2007.

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