Goodyear will reduce worldwide employment by more than 7,200 this year, cutting annual costs by about $250 million, as it deals with a sea of red ink.
Goodyear posted a $16.5 million loss from operations in fourth quarter 2000 compared to income of $47.6 million in fourth quarter 1999.
Net loss, including rationalization charges and the impact of a change in inventory costing methods, was $102 million compared to net income of $37 million the previous year. Sales for the quarter were $3.5 billion, down slightly from $3.7 billion in 1999.
"The severe decline in original equipment demand for tires and engineered products in North America and the very soft winter tire market in Europe had a substantial impact on our fourth quarter results,” said Samir Gibara, chairman and CEO. "Unrelenting high costs for raw materials, especially for oil-derived products, continued to depress our results. Additionally, the euro’s value versus the U.S. dollar was a negative factor throughout the quarter."
Goodyear sales for 2000 were a record $14.4 billion, up from $13.4 billion in 1999. Net income was $40.3 million or $103.3 million before extraordinary charges. Its 1999 income was $243.2 million including after-tax adjustments.
Its North American Tire unit sold 29.1 units in fourth quarter, up 3.8 percent from 1999. Volume for the year was 115.9 units, up 6.3 percent with the addition of Dunlop operations and increased replacement market sales following the Bridgestone/Firestone recall. Shipments of commercial tires for the replacement market were down 13.2 percent in fourth quarter while original equipment volume was down 39.9 percent due to shutdowns at truck plants.
Goodyear posted a $16.5 million loss from operations in fourth quarter 2000 compared to income of $47.6 million in fourth quarter 1999.
Net loss, including rationalization charges and the impact of a change in inventory costing methods, was $102 million compared to net income of $37 million the previous year. Sales for the quarter were $3.5 billion, down slightly from $3.7 billion in 1999.
"The severe decline in original equipment demand for tires and engineered products in North America and the very soft winter tire market in Europe had a substantial impact on our fourth quarter results,” said Samir Gibara, chairman and CEO. "Unrelenting high costs for raw materials, especially for oil-derived products, continued to depress our results. Additionally, the euro’s value versus the U.S. dollar was a negative factor throughout the quarter."
Goodyear sales for 2000 were a record $14.4 billion, up from $13.4 billion in 1999. Net income was $40.3 million or $103.3 million before extraordinary charges. Its 1999 income was $243.2 million including after-tax adjustments.
Its North American Tire unit sold 29.1 units in fourth quarter, up 3.8 percent from 1999. Volume for the year was 115.9 units, up 6.3 percent with the addition of Dunlop operations and increased replacement market sales following the Bridgestone/Firestone recall. Shipments of commercial tires for the replacement market were down 13.2 percent in fourth quarter while original equipment volume was down 39.9 percent due to shutdowns at truck plants.
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