The Goodyear Tyre & Rubber Company has reported net income of $125 million (62 cents per share) for the fourth quarter of 2004, compared with a net loss of $427 million ($2.44 per share) a year ago.
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In the quarter, the tyre maker achieved sales of $4.8 billion, a record for any quarter and an increase of 24% from $3.9 billion a year ago.
Tyre unit volume was 55 million units, compared with 53 million units in 2003.
The company’s fourth quarter net income benefited from improved price and product mix, higher volume in north America and cost- cutting measures, partially offset by an increase in raw material costs of approximately $130 million compared to the 2003 quarter.
Fourth quarter total segment operating income from the company’s business units increased 56%, to $271 million, compared to $174 million in 2003. For the year, total segment operating income more than doubled, to $1.1 billion from $511 million in 2003.
Full year results
Goodyear’s net income in 2004 was $115 million (63 cents per share), compared to a net loss of $807 million ($4.61 per share) in 2003. Income from the company’s business segments surpassed $1 billion, and increased 111% compared to 2003.
The company estimates that raw material cost increases negatively impacted 2004 earnings by $280 million, while currency translation had a positive impact of approximately $30 million.
Goodyear’s net sales for 2004 were a record $18.4 billion, an increase of 21% over $15.1 billion in 2003. Tyre volume in 2004 was 223 million units, up 5% from 2003.
Sales increased in 2004 largely due to the consolidation of two subsidiaries, improved pricing and product mix in all of the company’s business units, higher unit volume and currency translation.
The company estimates that currency translation, primarily in Europe, favourably impacted sales by approximately $540 million.
