AKRON (April 29, 2011)—Goodyear posted net income of $103 million for the first quarter, compared with a net loss of $47 million in the year-earlier period, while posting record sales of $5.4 billion.
The record revenues were a 27-percent improvement from the 2010 quarter as tire unit volumes rose 7 percent to 46.8 million tires.
Goodyear posted segment operating income of $327 million for the first quarter, up 36 percent from 2010. That reflected higher volume as well as an improved price/mix of $361 million, which nearly offset $385 million in higher raw material costs.
First-quarter sales, the company said, reflected a $219 million increase in volume. Sales benefited from a strong price/mix improvement, with revenue per tire up 15 percent, excluding the impact of foreign currency translation.
Looking at the geographic results, sales in North America climbed 30 percent to $2.31 billion. The unit posted operating earnings of $40 million, compared with a $14 million loss for 2010's first quarter.
“Improvement in North American Tire is a critical element to achieving our targets,” said Chairman and CEO Richard Kramer. “North American Tire's first-quarter performance strengthens my confidence in our future.”
Sales for the Europe, Middle East and Africa region grew 28 percent to $1.96 billion. Operating income rose 28.8 percent to $153 million.
In Latin America, revenue increased 22 percent to $585 million. Operating earnings dropped 11.8 percent to $67 million.
And sales for the Asia-Pacific region grew 14 percent to $551 million, with operating income down 2.9 percent to $67 million.