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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With one more 'black' quarter, Goodyear will set a 21st century record

By: Bob Ulrich

Goodyear Tire & Rubber Co. recently reported net income of $161 million for the third quarter ended Sept. 30, 2011. That is the third time this year the company has announced quarterly net income.

If Goodyear can earn a net profit in the fourth quarter, it will accomplish something rare, at least in recent history. The last time the company posted four profitable quarters in a single calendar year was 1999, when the company made some $240 million. (Through three quarters this year, Goodyear has earned $311 million.)

Goodyear hasn't finished a fiscal year in the black since 2007. In the 21st century (which technically started in 2001, but I seem to be in the minority on this point), the company has turned a yearly net profit in 2007, 2005, 2004 and 2000.

Speaking of 2007, Goodyear finished the year with a net profit of $602 million. In contrast, it lost $1.2 billion in 2002 -- amazingly with two profitable quarters.

Here's a list of the number of Goodyear's profitable quarters by fiscal year since 1999.

2011: three (to date). 2010: one. 2009: two.

2008: three. 2007: three. 2006: two.

2005: three. 2004: three. 2003: zero.

2002: two. 2001: two. 2000: three.

Based on past annoucements, Goodyear will reveal its fourth-quarter results during the first three weeks of February 2012.

With quarterly results always "muddied" by so many finanical and/or accounting terms ("discontinued operations," "operating income," etc.), I think that over time, the bottom line rules.

Related Topics: Goodyear financials