The Goodyear Tire & Rubber Company, due to report fourth quarter 2005 financial results on 16 February, said on Tuesday it expects record sales of almost US$20bn for the full year and more than $4.9bn for the fourth quarter.
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It expects 2005 segment operating income to be up between 20 and 25% from 2004. Excluding the impact of hurricanes in the U.S. Gulf Coast region, fourth quarter segment operating income is expected to approximate the $238m achieved a year ago.
Goodyear said raw material costs increased approximately 13% for the fourth quarter, more than it had anticipated. In line with its plans to focus on its cash and working capital requirements, the tyre maker reduced global tyre inventories through production adjustments during the quarter, particularly in Europe and Latin America.
“We are working worldwide to reduce our costs and working capital needs, as well as to further improve our product and brand mix,” said chairman and CEO Robert Keegan in a statement.
“Nevertheless, the escalating cost of raw materials and currency fluctuations continue to challenge our businesses.”
