Goodyear lauds 'strength and breadth' of tire industry recovery

Goodyear reports that its third quarter tire sales and unit volumes were the highest achieved since the third quarter of 2008.

“We are pleased with our continued strong operating results and made significant progress in all of our strategic focus areas during the third quarter,” says Richard J. Kramer, chairman and CEO.

“We are encouraged by the strength and breadth of the industry recovery,” he observes, despite a third quarter loss of $20 million (8 cents per share) – attributed to the rising cost of raw materials – compared with an income of $72 million (30 cents per share) during the same period last year.

“The bottom line,” Kramer adds, “is that as we look to the future we feel good about the direction of the tire industry, and we feel even better about our direction as a company.”

Third quarter sales were $5 billion, an increase of 13 percent over last year’s third quarter. Tire unit volumes totaled 47.7 million, up 6 percent from last year.

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“Goodyear’s innovation engine and resulting new products continue to win awards and third-party recognitions that drive differentiation in the marketplace and ultimately translate into consumer demand for our premium branded products,” Kramer says.

The company’s North American sales rose 17 percent from last year’s third quarter to $2.2 billion – the highest since the third quarter of 2008.

Sales reflect a 5 percent increase in tire unit volume, improved price/mix and branded share gains in the consumer replacement business. Original equipment unit volume increased 12 percent. Replacement tire shipments were up 3 percent. Third quarter revenue per tire, excluding the impact of foreign currency translation, increased 7 percent compared to 2009.

For more information, visit www.goodyear.com.