A new record: Goodyear’s Q3 sales increase 22%
Goodyear Tire & Rubber Co. reports that its third quarter 2011 sales were $6.1 billion, up 22% from a year ago and the highest ever achieved by the company in any quarter. Net income for the period was $161 million. Tire unit volumes totaled 47.7 million, unchanged from 2010.
Goodyear says third quarter sales reflect strong price/mix performance, which drove revenue per tire up 18% over the 2010 quarter, excluding the impact of foreign currency translation. Sales were also impacted by a $221 million increase in sales in other tire-related businesses, primarily chemical sales in North America, and favorable foreign currency translation of $175 million.
The company achieved segment operating income of $463 million in the third quarter, a record for any quarter. This was up $229 million from the year-ago period. Segment operating income for the third quarter of 2011 reflected improved price/mix of $739 million, which more than offset $554 million in higher raw material costs ($506 million net of raw material cost reduction actions).
“I am very pleased with our performance,” said Richard Kramer, chairman and chief executive officer. “Our third quarter results are another step on the path toward our 2013 targets and especially meaningful given the challenging market conditions in much of the world.
“All four of our tire businesses set all-time quarterly sales records as our teams did an excellent job offsetting higher raw material costs with improved price/mix and selling new, innovative products in targeted market segments,” Kramer said.
In Goodyear’s North American Tire business unit, third quarter 2011 sales increased 18% from last year to $2.6 billion, a record for any quarter. Sales reflect improved price/mix, which drove a 23% increase in revenue per tire, excluding the impact of foreign currency translation, compared to 2010’s third quarter. Tire unit volumes decreased 8%, and OE unit volume was flat. Replacement tire shipments were down 10%, primarily reflecting weaker sales of low-value-added tires in the consumer tire business.
The announcement follows record Q2 numbers, when Goodyear recorded net income of $47 million on net sales of $5.6 billion.