Goodyear announces a record $14.4 billion in sales in 2000

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Goodyear Tire & Rubber Co. reported its 2000 annual sales were a record $14.4 billion, up 7.9% from $13.4 billion in 1999. Global tire volume was 223.3 million units, up 22.8 million units or 11.4%.

The Dunlop businesses contributed $2.3 billion in sales during 2000 compared with $873.4 million in 1999 (Goodyear purchased the Dunlop operations in September 1999). This segment shipped 37.3 million units during 2000.

Goodyear recorded a net loss of $102 million for the fourth quarter of 2000. Worldwide fourth quarter sales were $3.5 billion in 2000, vs. $3.7 billion in 1999. “The severe decline in original equipment demand for tires and engineered products in North America and the very soft winter tire market in Europe had a substantial impact on our fourth quarter results,” said Samir G. Gibara, chairman and chief executive officer. “Unrelenting high costs for raw materials, especially for oil-derived products, continued to depress our results. Additionally, the euro’s value vs. the U.S. dollar was a negative factor throughout the quarter.”

Because of the fourth quarter losses, the company has increased prices, reduced production to better align inventory levels with demand, curtailed discretionary spending and will reduce worldwide employment levels by more than 7,200. “Further savings will come from simplifying our tire line offerings and the continued integration of our Dunlop operations,” Gibara said. “Sales growth will be achieved through expansion in our distribution channels, leveraging our valuable brands and stronger advertising. We are intensifying our sales and marketing efforts in replacement markets.”

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