Goodyear posts record fourth quarter, full year sales
Goodyear Tire & Rubber Co. achieved record sales for the fourth quarter and the full year of 2005, and its highest full-year net income since 1998.
"Strong demand for our innovative new tires coupled with improved
marketing drove a richer product mix and record sales for the company," says Goodyear Chairman and CEO Bob Keegan.
Goodyear posted sales of $4.9 billion during the fourth quarter of 2005. Improved pricing and product mix and higher volume
in the international tire businesses contributed to that total, according to Goodyear officials.
Fourth quarter total segment operating income was $226 million,
including the $15 million impact of the hurricanes in the U.S. Gulf
Coast region. This compares to segment operating income of $238 million in the 2004 quarter.
Goodyear suffered a net loss of $51 million during 4Q 2005, officials noted.
Raw material costs increased 13%, or $160 million, compared to the year-ago quarter. "Improvements in price and mix of approximately $190 million, however, more than offset these cost increases," say Goodyear officials.
For the full year of 2005, Goodyear achieved net sales of $19.7 billion, a record for the company and 7% more than 2004 levels.
Goodyear's net income in 2005 nearly doubled to $228 million from 2004. The Akron, Ohio-based tiremaker's segment operating income grew 23% to $1.2 billion.
"Our company completed another very good year, and I am extremely proud of the progress we made in 2005," says Keegan. "I am gratified by the work of our people, who demonstrated an intense, informed market focus and a commitment to innovation and building strong brands.
"The market has responded positively to our new high-margin tires such as Assurance and SilentArmor in North America, and UltraGrip 7 and RunOnFlat in Europe.
"While escalating raw material costs and currency fluctuations will
continue to challenge our business, our fundamentals remain sound.
"We believe the impact of our innovative new products, together with
intensified efforts to reduce costs and improve our mix, gives us a
solid foundation to continue our turnaround."