The Goodyear Tyre and Rubber company’s North American Tyre unit’s volume in 2002’s first quarter was up 1.5 percent from 2001. Replacement volume decreased 2.5 percent though shipments to original equipment customers were up 10.5 percent.
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Sales increased in the quarter due to the higher original equipment volume, the Ford tyre replacement programme and price increases imposed during the quarter.
During the first quarter, Goodyear supplied approximately 500,000 tyres in connection with Ford’s replacement programme, which ended on March 31.
The operating loss in the 2002 quarter was primarily a result of higher costs due to the impact of fourth quarter 2001 production cutbacks, the charge related to the Penske business and a shift in channel and product mix.
European Union Tyre’s unit volume in 2002’s first quarter was down 3.2 percent from 2001. Replacement volume decreased 6.7 percent but shipments to original equipment customers were up four percent.
Sales decreased in the first quarter primarily due to the effects of currency translation, lower volume and a shift in mix toward lower-priced original equipment tyres.
Higher costs due to the impact of fourth quarter 2001 production cutbacks, lower volume and a weaker euro versus the US dollar contributed to the decline in operating income.
The company estimates that the effects of currency movements reduced sales by approximately $15 million and operating income by $2 million in the 2002 quarter.
Eastern Europe, Africa and Middle East Tyre’s volume in 2002’s first quarter was up 12.1 percent from 2001. Replacement volume increased 18.4 percent for the quarter and shipments to original equipment customers were down 7.2 percent for the quarter.
Sales increased from 2001 for the quarter due to higher replacement market volume, particularly in Turkey and Poland. Operating income increased due to a shift in mix to higher-margin replacement tyres, lower raw material costs and the benefits of earlier restructuring programmes.
The company estimates that the effects of currency movements reduced sales by approximately $45 million and operating income by $3 million in the 2002 quarter.
Latin American Tyre’s volume in 2002’s first quarter decreased 1.6 percent from 2001. Replacement volume decreased 2.5 percent for the quarter. Shipments to original equipment customers were up 0.6 percent for the quarter.
Sales decreased in the 2002 period due to currency translation, particularly in Argentina and Venezuela, and lower volume but price increases partially offset currency movements.
Despite lower volume, operating income increased in the quarter due to price increases, the benefits of cost reduction programmes and lower raw material costs.
The company estimates that the effects of currency movements reduced sales by approximately $30 million and operating income by $8 million in the 2002 quarter.
Asia Tyre’s unit volume in 2002’s first quarter was up 5.4 percent from the 2001 period and replacement volume was up 5.5 percent. Shipments to original equipment customers were up 5.1 percent.
Sales increased in the 2002 quarter due to higher volume and operating income improved as a result of lower raw material costs, the benefits of cost reduction programs and higher volume.
The company estimates that the effects of currency movements reduced sales by approximately $5 million and operating income by $2 million in the 2002 quarter.
