AKRON (July 30)—Goodyear suffered a "disappointing" $73.6 million net loss in the second quarter, but management is "encouraged by numerous positive trends" and is optimistic about a turnaround in light of positive results at six of the firm's seven business units. North American Tire, however, was still in the red on an operating basis, as higher raw material, manufacturing and benefits costs and an unfavorable product mix offset cost savings. Sales revenue rose 8 percent to $3.76 billion despite slightly lower unit sales. Overall second-quarter segment operating income of $161 million was only 4.2 percent below 2002, but higher financing, interest, foreign currency exchange and rationalization costs left Goodyear with a pretax loss of $52 million vs. a profit of $49 million in 2002. Robert J. Keegan, chairman and CEO, told analysts in a conference call the firm expects to start seeing cost reductions in the second half from its Six Sigma operational efficiency programs implemented in the second quarter.
Goodyear posts $73.6 million loss for quarter
Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].