The Goodyear Tyre & Rubber Company today reported a net loss for 2001 of $203.6 million ($1.27 per share). For 2000, the company reported net income of $40.3 million (25 cents per share).
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The 2001 results include net after-tax charges of $170.1 million ($1.06 per share) while the 2000 results included net after-tax charges of $63.0 million (40 cents per share).
The company estimates that the effects of currency movements reduced operating income by approximately $85.0 million in 2001.
Goodyear also announced a $US174.0 million ($1.07 per share) loss for the fourth quarter of 2001, compared with a net loss of $102.0 million (65 cents per share) in the fourth quarter of 2000.
The fourth quarter 2001 results include after-tax rationalisation charges and other adjustments totaling $126.9 million (78 cents per share). Excluding these adjustments, Goodyear posted a loss of $47.1 million (29 cents per share) for the period.
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By GlobalDataNet sales for 2001 were $14.1 billion, down 1.9 percent from $14.4 billion in 2000. Tyre volume was 219.3 million units, down 4.0 million units or 1.8 percent for the year.
The company estimates that the effects of currency movements reduced net sales by approximately $395.0 million in 2001.
In a statement, Goodyear said the replacement market for consumer tyres was “favourably impacted” in 2001 and 2000 by replacement programmes involving Firestone tyres on Ford vehicles. In May 2001, a programme involving an estimated 13 million tyres began which followed an August 2000 replacement programme of 6.5 million tyres.
During 2001, Goodyear’s North American Tyre division supplied about five million tyres for the replacement programme in 2001. During 2000, it supplied about three million.
