AKRON (Feb. 14, 2008) — Goodyear´s net sales in the fourth quarter rose to $5.16 billion from $4.64 billion and profits jumped to $52 million from a loss of $358 million during the like period in 2006.
Sales and profits also improved for the year as the tire maker boosted its pricing and product mix and recovered from the 2006 United Steelworkers strike.
Chairman and CEO Robert Keegan said the firm´s fourth quarter results show significant gains as Goodyear drives sales of its higher-margin premium product lines.
For 2007, Goodyear posted a 4.8-percent gain in net sales to $19.6 billion from $18.8 billion in 2006. The company also posted net income of $602 million versus a loss of $330 million in 2006.
Its North American Tire unit saw 9.9-percent higher sales in the fourth quarter, but sales fell 2.5 percent for the year. Tire unit volume also was flat for the quarter and down 10.6 percent for the year.
Segment operating income for North American Tire in both periods rose from losses in their similar periods in 2006. The quarter saw profits of $40 million versus a loss of $301 million, and the year counted a net gain of $139 million from a loss of $233 million in 2006.
Goodyear estimates the USW strike reduced North American Tire´s operating income in 2006´s fourth quarter by $313 million.
Keegan said the company has achieved more than $1 billion in gross cost savings by year-end 2007. The firm had set a goal of reducing costs by $1.8 billion to $2 billion by 2009.