Goodyear Says Fourth Quarter 2004 Results Reflect Significant Improvement

The Goodyear Tire & Rubber Co. announced that its net sales for 2004 were a record $18.4 billion, an increase of 21 percent over 2003. Tire volume in 2004 was 223 million units, which was up 5 percent from 2003. Goodyear’s net income in 2004 was $115 million, compared to a net loss of $807 million in 2003. The company estimated that raw material cost increases negatively impacted 2004 earnings by $280 million but that currency translation had a positive impact of approximately $30 million.

From Tire Review Staff & Wire Reports

AKRON, OHIO —

The Goodyear Tire & Rubber Co. announced that its net sales for 2004 were a record $18.4 billion, an increase of 21 percent over 2003.

Tire volume in 2004 was 223 million units, which was up 5 percent from 2003. Goodyear’s net income in 2004 was $115 million, compared to a net loss of $807 million in 2003. The company estimated that raw material cost increases negatively impacted 2004 earnings by $280 million but that currency translation had a positive impact of approximately $30 million.

Additionally, Goodyear’s fourth quarter results showed positive net income of $125 million and record sales of $4.8 billion. “Sales benefited from the consolidation of two subsidiaries…improved pricing and product mix, higher volume and favorable currency translation,” Goodyear said.

The tiremaker also attributed the positive results to “favorable selling prices and product mix, as well as strong volume growth in the company’s North American Tire business.”

Sales for Goodyear’s North American Tire (NAT) Division reached $7.85 billion for the full year and $2 billion for the fourth quarter. NAT sales for the fourth quarter were up 21 percent compared to the 2003 period, Goodyear said. Fourth quarter segment operating income was $16 million, compared to a loss of $15 million in 2003. For the full year, segment operating income was $32 million, compared to a loss in 2003 of $131 million.

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