Revenues and profits set records for the Goodyear Tire & Rubber Co. in the third quarter, yet overall tire volumes declined, especially in the North American market.
Goodyear posted $161 million in net income on 22% higher net sales of $6.1 billion for the third quarter this year – both company records – compared to a net loss of $20 million during the same period in 2010.
Richard Kramer, Goodyear’s chairman & CEO, noted in the company’s third quarter earnings statement that higher raw material costs of $554 million were more than offset by what he called an “improved price mix” of $739 million
That proved especially true in the North American market, where Goodyear said its third quarter 2011 sales increased 18% from last year to $2.6 billion, driven by a 23% increase in revenue per tire, excluding the impact of foreign currency translation, compared to the third quarter in 2010.
Overall, however, North American tire unit volumes decreased 8%, with original equipment unit volume flat and replacement tire shipments down 10%, primarily reflecting weaker sales of low-value-added tires in the consumer tire business, the company said.