Sales were up, income was down for Goodyear during 4Q, full year 2006
Goodyear Tire & Rubber Co.'s net sales for the fourth quarter of 2006 totaled nearly $5 billion. However, during that period Goodyear suffered a net loss of $358 million.
Goodyear says it managed to achieve sales gains during the fourth quarter despite an 8% decline in tire volume due to the 12-week strike by the United Steelworkers and the company's decision to substantially reduce its private label activities.
Goodyear estimates that the strike reduced fourth quarter profits by some $363 million.
For the full year of 2006, Goodyear achieved net sales of $20.3 billion. However, Goodyear's segment operating income was down, hitting the $786 million mark versus more than $1 billion for 2005.
"In addition to the strike, full-year 2006 results include the impact of continued weak markets in North America, the company's action to exit certain segments of the private label business, and divestitures," say Goodyear officials.
Goodyear's North American Tire division's sales for the fourth quarter were $2.1 billion versus $2.3 billion during the same period in 2005. The unit also experienced a loss of $301 million compared to 4Q 2005, when it achieved income of $43 million.
Goodyear estimated that the strike slashed 2006 segment operating income by $313 million.