Despite a solid showing in the fourth quarter, Goodyear still saw 2009 sales fall off by more than $3 billion and net profits drop some $300 million year-over-year.
Driven by significantly lower tire volumes in North America and Europe, the tiremaker said its overall global sales for 2009 came in at $16.3 billion, down dramatically from 2008’s $19.5 billion. Net profits for 2009 were a net loss of $375 million, down from 2008’s net loss of $77 million.
For the fourth quarter of 2009, Goodyear’s sales were $4.4 billion, up 7% year-over-year, thanks to an 8% boost in tire sales or the period. Net profits for the quarter were $107 million, up from a net loss of $330 million in 2008’s final period.
“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,” said Bob Keegan, chairman and CEO. “These gains are a reflection of the success we had in strengthening our business despite a challenging economy and operating environment.”
While Keegan said he sees tire demand improving, he warned that, “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.”
Goodyear’s North American Tire unit posted 2009 sales of $6.98 billion, down from 2008’s $8.26 billion, resulting in a net loss of $305 million in 2009 vs. a loss of $156 million in the prior year. Tire unit sales amounted to 62.7 million tires, down from 2008’s 71.1 million tires.
In the fourth quarter, though, the North American unit has sales of $1.88 billion, down slightly year-over-year from 2008’s $1.94 billion – even though unit sales stayed level at 16.9 million tires. The net loss for the period was $27 million compared to a loss of $193 million in 2008’s fourth quarter.
