17 September 2002 10:13
Goodyear Releases Monthly Investor Update
Goodyear's Investor Relations department today published its monthly update for individuals interested in
tracking Goodyear's progress on a more frequent basis. August Operating Highlights North American Tire * In August,
industry shipments of consumer replacement tires were 8 percent below last year's levels. Goodyear's shipments
of consumer replacement tires were also down and below the industry shipment levels. * Goodyear's shipments to its
large wholesalers continued to improve in August. Shipments of the Goodyear brand, excluding the tires shipped last year
as part of the Ford replacement program, increased compared with August 2001. Shipments of custom brand tires declined
significantly from August 2001 levels. * Industry shipments in August of commercial replacement tires were up 18 percent
from last year's levels. Goodyear's shipments of commercial replacement tires increased but were below
industry shipment levels. * In August, industry shipments to original equipment customers increased 3 percent from a
year ago for consumer tires and 23 percent for commercial tires. Goodyear's shipments of OE consumer tires were
down compared with last year. Goodyear's shipments of OE commercial tires increased less than industry levels.
European Union * In August, industry replacement tire shipments were down 1 percent for consumer tires and down 6
percent for commercial tires compared with prior year levels. Goodyear consumer tire shipments declined at the same rate
as the industry and Goodyear commercial shipments were below industry shipments. * Industry OE consumer and commercial
tire shipments were each down 4 percent from August 2001. Goodyear shipments, however, were down less than the industry.
Eastern Europe * Consumer replacement tire unit sales for Goodyear were up significantly compared with August of last
year. Volume gains were reported in most countries, especially Russia and South Africa. * OE tire unit sales for
Goodyear were down significantly from August of last year due to longer summer shutdowns by auto and truck
manufacturers. * Operating income improved over last year due to higher volumes, stronger mix and lower conversion costs
partially offset by higher SAG expenses. Latin America * August replacement tire shipments were up from last year,
primarily due to higher consumer sales in Mexico and Venezuela and strong commercial sales in Brazil. * OE shipments
were down significantly from last year due to a decrease in auto production in Mexico and Brazil. * Price/mix
improvements and lower raw material costs were partially offset by negative currency volatility resulting in higher
operating income compared with last year. * Currency volatility in Brazil continued as the Real revalued 8 percent in
August. The Real devalued 31 percent year-to-date. Asia * Replacement tire shipments increased throughout the region in
August. * OE tire shipments for August declined from 2001 levels due to lower sales in China and the ASEAN region. *
Improved price/mix and lower raw material costs increased operating income. Engineered Products * Lower sales of
conveyor belts and power transmission products negatively impacted sales and operating income in August. Chemicals *
Sales are lower due to the sale of the specialty chemical business. * Higher raw material costs have offset improved mix
and volume. Corporate News * On Sept. 13, Goodyear contributed 11.3 million shares of common stock to two of its pension
funds. The company has entered into a registration rights agreement with The Northern Trust Company, the trustee and
investment advisor to the Trust, with respect to the 15.6 million shares contributed by Goodyear to the funds. The
shares account for less than 7 percent of the value of the fund. The contribution reduces pension expense with no
material impact on earnings per share expected through 2003. * In a ceremony filled with patriotic music and messages,
millions watched on television and in person Sept. 5 as Goodyear christened its newest airship -- the Spirit of America.
The blimp was christened by Letitia Driscoll, the mother of New York police officer Stephen Driscoll, who was killed in
last year's Sept. 11 attack on the World Trade Center. NBC's Today show, CBS's Morning Show and CNN
broadcast live from the event. The new airship will be based in Carson, Calif., and replace the Eagle, which is being
retired. * Goodyear Dunlop United Kingdom has opened its new headquarters and national distribution center - TyreFort -
in Birmingham, England. TyreFort is home to each company's sales and marketing functions, retail operations, and
their shared services functions such as finance, human resources and information technology. The consolidation into one
facility will lead to the closure of 16 distribution centers and a reduction of 268 associates in the United Kingdom. *
Goodyear Dunlop Portugal has been named one of the "500 Biggest & Best" companies in that country by Exame
magazine. Goodyear Dunlop placed third in the transportation equipment category. Exame magazine is Portugal's
leading business publication. * More than 780 dealers from 21 countries received their orientation to Goodyear
Asia's "Neovation 2002" at the Genting Highlands Conference Center near Kuala Lumpur, Malaysia recently.
The dealers - together with 40 motoring, business and economics writers from Malaysia, Korea, Thailand, the Philippines
and Indonesia - were present for the introduction of Goodyear's latest tires for the Asia market, the Wrangler AT/R
and the Fortera, specially designed for SUVs. The Wrangler is being manufactured in seven sizes in Indonesia while the
Fortera is produced in four sizes in the Philippines.
Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires,
engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in
almost every country around the world. Goodyear employs about 95,000 people worldwide.
This news release contains forward-looking statements based on current expectations and assumptions that are subject
to risks and uncertainties that could cause actual results to differ materially from those expressed by such statements.
These risks and uncertainties include price and product competition, customer demand, the ability to control costs and
expenses, general industry and market conditions and general domestic and international economics, including interest
rate and currency fluctuations.
MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X47851215
CONTACT: Media, Keith Price, +1-330-796-1863, or kprice@goodyear.com, or Analysts, Barb Gould, +1-330-796-8576, or
goodyear.investor.relations@goodyear.com, both of Goodyear Tire & Rubber Company
Web site: http://www.goodyear.com/
[CAIW [Corporate Announcements Intelligence Wire]] |
RUSSIA IN FACTS
