The Goodyear Tire & Rubber Co. has reported net income of $33.7 million (20 cents per share) for the third quarter of 2002.
Net income in the third quarter of 2001 was $9.3 million (6 cents per share). All per share amounts are diluted.
Worldwide, Goodyear's third quarter sales were $3.5 billion in 2002, versus $3.7 billion in 2001. Tire unit volume in 2002's third quarter was 54.4 million units, down 4% from last year.
The company estimates that the effects of currency movements negatively impacted worldwide sales by approximately $4 million and earnings by $10 million in the third quarter of 2002.
"Our international business units demonstrate that our initiatives to achieve top line growth and substantial earnings improvement are delivering results," said Sam G. Gibara, chairman and chief executive officer. "Our focus is now to drive this change throughout North America and regain our momentum in the consumer replacement market. We expect our sharpened market approach and effective execution will lead to improved financial performance."
Gibara added, "While economic conditions in our key markets and rising raw material costs are a concern, we remain committed to generating significant cash flow through continued concentration on working capital reduction in the fourth quarter."
Net income in the 2002 third quarter included an after-tax gain of $8.2 million (4 cents per share) resulting primarily from the sale of land in Mexico. In addition, an after-tax rationalization charge of $8.9 million (5 cents per share) related chiefly to a manufacturing facility consolidation in Europe and the closure of a mold manufacturing facility in the United States.
Third quarter 2001 results included $50 million in pre-tax earnings resulting from the company's participation in the Ford Motor Co. tire replacement program and $2 million in pre-tax earnings contributed by the Specialty Chemical business, which was sold in December 2001.
Capital expenditures in 2002's third quarter were $120.4 million compared with $94.7 million in the 2001 period. Depreciation and amortization expense in 2002's third quarter was $149.1 million compared with $154.1 million in the 2001 period.