Weak Tire Demand Brings Losses to Goodyear

July 31, 2009

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The second quarter brought a $221 million net loss, or 92 cents a share, for the Goodyear Tire & Rubber Company, affected by weak tire demand
. In comparison, the same quarter of last year was characterized by income of $75 million, or 31 cents a share.

"There is little debate as to the severity of the economic and industry downturn we have experienced the past three quarters," said Robert Keegan, chairman and CEO. "We are beginning to see some signs of economic stabilization and recovery, although still fragile at this stage and varied around the globe."

As a result of weak industry demand and increased pension expense in North America, the company's operating income suffered during the quarter, bringing in $24 million compared to $330 million in the year-ago quarter.

Sales were down 25 percent from the second quarter of 2008, landing at $3.9 billion this quarter. The company attributes the decline in sales to a 17 percent drop in tire unit volume due to lower demand and $290 million reduction in sales in other tire-related businesses.

During the second quarter, Goodyear launched 19 new products, and expects to reach its goal of more than 50 new products during 2009.

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