The Goodyear Tire & Rubber Company has reported a US$20m loss in its third quarter, despite its highest third quarter sales and tyre volumes since 2008.
The $20m loss compared to a net income of $72m in the comparable period last year. Third quarter 2010 sales were $5bn, up 13% from the 2009 quarter. Tyre unit volumes totalled 47.7m, up 6% from last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company said that its quarter included charges of $56m for cash premiums and write-offs of deferred financing fees related to the early redemption of debt, $10m due to rationalisations, asset write-offs and accelerated depreciation, $4m related to a supply disruption, and $3m resulting from a strike in South Africa. These were offset slightly by gains of $13m in tax benefits, and $8m on an insurance recovery.
Year to date, the company said that sales were $13.8bn, up 16% from $11.9bn in the 2009 period. Goodyear’s year-to-date net loss of $39m compares to a net loss of $482m in 2009’s first nine months.
“We are pleased with our continued strong operating results and made significant progress in all of our strategic focus areas during the third quarter,” said Richard J. Kramer, chairman and chief executive officer. “We are encouraged by the strength and breadth of the industry recovery.
“The bottom line,” Kramer added, “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 reflect a $211m impact of the increase in volume. The company said that sales benefited from price/mix improvements, which drove revenue per tyre, excluding the impact of foreign currency translation, up 8% over the 2009 quarter despite higher original equipment sales.
Full details on Goodyear’s third quarter can be found by clicking here.
