Goodyear expects record 2005 sales
Goodyear Tire & Rubber Co. anticipates record sales of nearly $20 billion for the full year of 2005 and more than $4.9 billion for the fourth quarter of the year.
Goodyear expects 2005 segment operating income to be up between 20% and 25% from 2004 levels.
"Excluding the impact of the hurricanes in the U.S. Gulf Coast region, fourth quarter segment operating income is expected to approximate the $238 million achieved in the prior year period," say Goodyear officials.
Raw material costs grew 13% during the fourth quarter, more than Goodyear management had anticipated, they say.
"Consistent with its plans to focus on its cash and working capital requirements, Goodyear reduced global tire inventories through production adjustments during the quarter, particularly in Europe and Latin America."
However, demand for key Goodyear products remained strong throughout the world, according to Goodyear Chairman and CEO Bob Keegan.