Profits drop 90% at Goodyear

Goodyear Tire & Rubber Co. said its second-quarter profit fell 90% and that third quarter production will be slowed because automakers are producing fewer trucks and cars. Goodyear’s net income dropped to $7.8 million from $77.1 million in the second quarter 2000, while sales fell slightly to $3.58 billion from $3.61 billion. “The ongoing slowdown in the auto and commercial truck industries around

July 23, 2001

“The ongoing slowdown in the auto and commercial truck industries around the globe have led to a significant reduction in orders and a corresponding effort to adjust production and inventory levels in our tire, engineered products and chemicals businesses,” said Samir G. Gibara, Goodyear’s chairman & CEO. “More production curtailments will be needed in the third quarter until demand improves.”

Gibara added that sluggish economies and significant currency devaluations in Europe, Asia, Turkey and Brazil had a negative impact on both sales and earnings during the quarter.

In North America, industry shipments of consumer replacement tires were up about 1% during the second quarter of 2001 compared with last year. However, Goodyear's shipments in this segment grew more than 10%.

“Goodyear continues to be the clear winner as consumers, concerned about tire safety and quality, look to the brands they know and trust,” Gibara said.