AKRON (Nov. 10)—Goodyear's rebound continued in the third quarter as the company posted improved earnings and record sales for the second consecutive period.
The tire maker recorded net income of $36.5 million, compared to a net loss of $119.4 million in 2003's third quarter, reflecting growth in both sales and unit volume. Goodyear hit a new high with sales of $4.7 billion, a 20.7-percent increase from last year.
However, the firm had a net loss of $12.3 million in the first nine months of 2004, which is a substantial improvement from the loss of $372.3 million during the same span in 2003. Sales for the year-to-date were a record $13.5 billion, a 20.8-percent increase over revenues reported last year.
The sales growth in the third quarter reflects improved pricing and product mix; higher unit volume, primarily driven by improved sales of Goodyear brand tires; and strong commercial tire sales in almost all of the firm's markets, the company said.
Tire unit volume in the period was 57.4 million units, up from 55.3 million units in the like quarter last year.
All seven of Goodyear's business units reported higher segment operating income compared to those recorded in 2003's third quarter.
Goodyear also said it will file an amended 10-K for 2003 that will include a restatement of financial statements, including those for the first and second quarters of 2004, to reflect after-tax adjustments of about $4.6 million. The company said it will correct a miscalculation of deferred income tax assets and liabilities, amounting to about $360 million each, in its consolidated balance sheet for 2003.