Goodyear Presents Fourth Quarter Results

The tire manufacturers were forced to suffer alongside the automakers during the recession as sales and profit went down. Goodyear, one of the world’s largest tiremaker, announced that annual sales for 2009 were $16.3 billion, down from $19.5 billion in the 2008 period. Sales dropped by 9.5 percent due to lower industry demand in North America and Europe.

The descending trend ended in the fourth quarter, as sales were $4.4 billion, up 7 percent from 2008's fourth quarter. The tire demand appeared mostly in emerging markets, but weakness continued in tire demand in Europe and North America.

"Our fourth quarter results were solid, with improved gross margins, segment operating income and net income reflecting lower raw material costs, improved volumes and actions to reduce costs. These gains are a reflection of the success we had in strengthening our business despite a challenging economy and operating environment," said Robert J. Keegan, chairman and chief executive officer.

"Tire demand around the world has begun to recover and we look forward to year-over-year global growth in 2010. The degree of recovery, however, varies considerably by geography and product segment. We remain confident, but many challenges, including high raw material costs and weak commercial truck tire demand, will persist in 2010," he said. "Goodyear's strong market position and growing capabilities will, however, enable us to fully capitalize on the attractive market opportunities available to us."

In the fourth quarter of 2009, Goodyear had a net income of $107 million (44 cents per share), compared to a loss of $330 million ($1.37 per share) in 2008's fourth quarter.