Goodyear Reports Fourth Quarter, Full Year Results for 2010

Goodyear Tire & Rubber Company revealed today the fourth quarter and the entire 2010's results along with quarterly division operating income which is $224 million and the entire year section of operating income of over $900 million.

Richard J. Kramer, chairman and chief executive officer stated that the company currently holds the maximum line up of products and is generating record revenues with every tire increases by accelerating increase in the target auto market. Goodyears brands and technology offers buyer targeted division with an accelerating value proposition.

The 2010 Goodyear’s fourth quarter sales were $5.1 billion, raising by 14 percent over the 2009 quarter.  Tire unit marked the total of 45 million, again climbing to 4 percent over 2009.

The last quarter sales shows the increase of $130 million, the sales were benefited by record pricing mix improvisations which increased the revenue by every tire and not the foreign currency felt any impact on it was raised to 12 per cent from 2009 quarter. The sales showed positive impact by increasing to $159 million rise in sales in other tire related firms mainly the third party chemical sales in the North American markets. However the unfavorable foreign currency translation reducing its sales by $111 million.

In 2010 fourth quarter Goodyear segment operating income of $224 million went down to $25 million over the year-ago quarter. The segment operating income showcases the better price/mix of $315 million and profits of higher volumes, offset in higher raw material costs by $430 million )$397 million net of the raw material lowering the cost actions. The foreign currency translation reducing the segment operating income to $17 million. The measures to lower the cost benefits by $119 million.

Fourth quarter 2010 which includes the overall charges of $213 million (87 cents in per share) because of asset write-offs, accelerated depreciation and rationalizations.

The fourth quarter net loss of 2010 was $177 million (73 cents per share), over with the net income of $107 million in 2009 quarter.

Asia Pacific Tire sales for the fourth quarter raised to 16 per cent from the last years to $562 million, recoded to be the highest ever. The sales showcased 5 per cent increment in tire unit volume. The original equipment units raised to 12 per cent. The replacement tire shipments raised to 1 per cent.

The fourth quarter segment operating income which was $60 million was only $10 million less than the last year. 2010 quarter was increased positively price/mix of $38 million and higher volume. The the raw material cost raised by $45 million compared to the last year.

Pierre E. Cohade, president of Goodyear Asia Pacific said that the company is elated after achieving these results for 2010 in Asia. He also said that the growth in the particular region mainly in India and China shows that the company is focused in the right direction.

He further stated that the third party recognitions and awards are the best proofs which points towards the strategy the company is using. In 2010 the company was awarded with 13 top awards for its new products, many citations for the tire brand and many marketing initiatives the first ever recognition for the retail brand, and also the prestigious Best Employer award in China.

He added that to win over the Asian markets the upmarket products is required, best stores and most of all the promising firm which attracts and only retains the best in the industry. The company wishes to thank all the highly dedicated associated and the business partners giving a record breaking.

Goodyear's yearly sales of 2010 were $18.8 billion raised by 16 per cent from $16.3 billion in 2009 period. The sales reflects $1 billion impact of 8 per cent improvement in the tire unit volume as increase of $582 million increment in the sales of the other tire related business, mainly the third party chemical sales by the North American Tire.

The Goodyears 2010 segment operating income which is $917 million is raised from $372 million in 2009 shows the improved profitability in the four of the auto company's business units. Over the previous year, the 2010 segment operating income depicts higher sales and the actions helped in reducing the cost price by $ 467 million a very important recovery from the under absorbed fixed costs. Over 2009's improved price/mix of $689 million offset $685 million in the higher raw material costs ($549 million raw material net cost reduction actions). Goodyear's net loss for 2010 of $216 million (89 cents every share) over to a net loss of $375 million ($1.55 every share) in 2009.

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