Bangkok--27 Feb--Aziam Burson-Marsteller
The Goodyear Tire & Rubber Company today reported results for the full-year of 2012.“Our 2012 performance marks the second consecutive year we have exceeded $1.2 billion in segment operating income in a low-volume environment,” said Richard J. Kramer, chairman and chief executive officer. “These results have been driven by North American Tire’s performance, which has momentum and, more importantly, sustainability,” he added.
“In addition, we are beginning to see the benefits of the strategic investments we are making in China,” Kramer said.
“We feel very positive about the progress made in our North American, Latin American and Asia Pacific businesses in 2012 and are confident in our ability to continue delivering improved profitability,” he said.
Goodyear’s 2012 annual sales were $21 billion, down 8 percent from $22.8 billion a year ago. Sales reflect strong price/mix performance, which drove revenue per tire up 8 percent year-over-year, excluding the impact of foreign currency translation. Unfavorable unit volume and foreign currency translation reduced sales by $1.6 billion and $766 million, respectively. Lower sales in other tire related businesses, most notably third party chemical sales in North America, reduced 2012 sales by $489 million.
The company’s segment operating income of $1.2 billion was down $120 million from last year. Compared to the prior year, the decline in 2012 segment operating income primarily reflects weakness in Europe, partially offset by improvement in North American Tire.
Compared to the prior year, 2012 also benefitted from $1 billion in improved price/mix, which more than offset $576 million in higher raw material costs. Raw material costs reflect $249 million in actions taken to reduce their impact.
Asia Pacific Tire
Twelve Months
(in millions) 2012 2011
Tire Units 20.6 20.5
Sales $ 2,357 $ 2,396
Segment Operating Income 259 234
Segment Operating Margin 11.0% 9.8%
2013 Outlook
Goodyear now expects to achieve segment operating income of $1.4 billion to $1.5 billion in 2013, an increase of more than 12 percent over 2012 and a record. The company's current expectation is below its previously announced target for total segment operating income of $1.6 billion.
Goodyear continues to expect long-term growth in the global tire industry but at a slower pace near-term than previously forecast. The company expects that its full-year tire unit volume for 2013 will reflect a low single digit percentage growth rate compared to 2012.
Media information, please contact:
Goodyear (Thailand) Public Co., Ltd.
Chanapa Dachapanya
Tel.(0) 2909-8080 ext.372
Email:
[email protected]
Aziam Burson-Marsteller Co., Ltd.
Phitsinee Hirunsinsoontorn
Tel.(0) 2252 9871-7
Email:
[email protected]
Satida Sritunyatorn
Tel.(0) 2252 9871-7
Email:
[email protected]