Bob Ulrich

Editor

Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993. He has won numerous awards for editorial and feature writing, including five gold medals from the International Automotive Media Association. Bob earned a B.A. in English literature from Ohio Northern University and has a law degree from the University of Akron.

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Goodyear reveals a lot (more) in its most recent 10-K

By: Bob Ulrich

Publicly traded companies in the United States are required to file a Form 10-K report at the end of the year, and a 10-Q report on a quarterly basis. So says the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.

Goodyear Tire & Rubber Co. dutifully did so when it announced its 2010 results earlier this year. As written in the press release sent out by Goodyear, the company posted a net loss of $216 million on net sales of $18.8 billion. (In the two quarters since then, the company has recorded net income of $150 million on net sales of $11 billion.)

The 10-K report is much more thorough than any press release. In looking over Goodyear's 2010 10-K, I noticed some points of interest.

* Goodyear's North American Tire (i.e., the U.S. and Canada) and Europe, Middle East and Africa Tire business units historically sell more replacement tires in the third quarter than any other quarter.

* Goodyear has approximately 1,500 tire and auto service center outlets (not counting 170 Wingfoot Commercial Centers). The 10-K breaks out 1,200 of them: There are 680 in the U.S., 400 in Asia and 200 in Europe/Middle East/Africa.

* In 2010, 84% of the company's sales came from new tires, compared to 83% in 2009 and 82% in 2008. In the North American Tire segment, new tire sales accounted for 74% of total sales.

* On a worldwide basis, the company admits to two "major" competitors: Bridgestone Corp. and Groupe Michelin. "Other significant competitors include Continental, Cooper, Hankook, Kumho, Pirelli, Toyo, Yokohama and various regional tire manufacturers."

* Under its global alliance with Sumitomo Rubber Industries Ltd., Goodyear owns 75% and Sumitomo 25% of Goodyear Dunlop Tires North America Ltd. That company not only owns the Dunlop brand in North America, but also operates "certain related businesses."

* Goodyear says "the principal channel for Goodyear brand tires is a large network of independent dealers."

* Goodyear says that its backlog of orders "is not considered material to, or a signifcant factor in, evaluating and understanding any of our business segments or our businesses considered as a whole."

* Goodyear will spend approximately $46 million in 2011 on pollution control facilities and occupational safety and health projects. The cost will jump to $66 million in 2012.

One other note of interest. Goodyear has five presidents -- one for each business unit plus Chairman, CEO and President Rich Kramer. They are all under 50 years old.

Related Topics: Goodyear financials, Rich Kramer, SEC