The Goodyear Tyre & Rubber Company said on Wednesday it expects to report 2004 fourth quarter net income in the range of 55 to 65 cents per share.
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All seven Goodyear business units are expected to report positive segment operating income in the fourth quarter, the tyre maker said in a statement.
Compared to the fourth quarter of 2003, operating income is expected to more than double in the company’s European Union business, increase by about 50% in the Latin America business, and improve by about 15% in the Chemical Product business.
The North American Tyre business is expected to report positive operating income for the third consecutive quarter, with results about equal to the third quarter of 2004 and up significantly from a loss in the fourth quarter of 2003. Segment operating income for each of the company’s other businesses will be about equal to levels attained in the fourth quarter of 2003.
The company expects record sales of $4.8 billion in the quarter, primarily reflecting the consolidation of two subsidiaries, higher volume, improved pricing and product mix, and the favourable impact of currency translation.
“Our fourth quarter business unit results will reflect the ongoing progress of our turnaround efforts, including the benefits of new product introductions in all of our businesses,” said Robert Keegan, Goodyear chairman and CEO.
Although Goodyear said its raw material prices increased more than anticipated in the fourth quarter, this increase was more than offset by higher selling prices and improved product, brand and customer mix, largely driven by strong market acceptance of new products.
Goodyear reiterated the expectation that its raw material costs will increase by 4% to 6% in 2005.
