Goodyear reports record sales in 2012

(April 27, 2012) AKRON, Ohio — The resurgent auto market has also meant new business for tire manufacturers. This was pointed out today when Goodyear Tire & Rubber Company reported record sales for the first quarter of 2012.

"I'm pleased with our results as our businesses posted solid operating income," said Richard J. Kramer, chairman and chief executive officer.  "Our teams delivered these results in the face of a difficult volume environment and high raw material costs, with a strong focus on price/mix.

"Favorable results in North America, in spite of the weak industry environment, are a clear indication of our success in delivering innovation, targeting profitable market segments and driving operational excellence.  As expected, Europe, Middle East & Africa's results were affected by weak economic conditions, which remain uncertain, and warm winter weather," he said.

"Our first quarter results demonstrated a consistent focus on our global Strategy Roadmap," Kramer added.  "We have positive momentum and I remain confident that we will reach our 2013 targets."

Goodyear's first quarter 2012 sales were $5.5 billion, up 2 percent from the 2011 quarter and a first quarter record.  Tire unit volumes totaled 43 million, down 8 percent from 2011, reflecting weak industry demand in many markets.  This compares to first quarter 2011 volumes that were up almost 7 percent from 2010.

First quarter sales reflect strong price/mix performance, which drove revenue per tire up 16 percent year-over-year, excluding the impact of foreign currency translation.  Unfavorable unit volume and foreign currency translation reduced sales by $345 million and $108 million, respectively.

The company had segment operating income of $292 million in the first quarter of 2012, down $35 million from the year-ago quarter.  Segment operating income reflected improved price/mix of $525 million, which more than offset $482 million in higher raw material costs ($420 million net of raw material cost reduction actions).