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Goodyear posts 21% rise in Q3 results

Goodyear Tire & Rubber Company reported 21% increase in operating income at $520 million for the third quarter of 2014.

Segment operating income was up 21% from the year-ago quarter driven by significant improvement in North America; Europe, Middle East and Africa, and Asia Pacific, the company said in Q3 results.

“We delivered outstanding earnings growth in the quarter and achieved a segment operating income margin of more than 11 percent, the highest in more than a decade, despite an increasingly challenged global economy,” said Richard J. Kramer, chairman and chief executive officer.

“These results reflect our focus on capturing the value of our branded products in the marketplace and continued progress generating cost savings through our operational excellence activities,” he added.

Goodyear’s third quarter 2014 sales were $4.7 billion, compared to $5.0 billion a year ago. Sales were negatively impacted by $137 million in unfavorable foreign currency translation.

Tire unit volumes totaled 41.9 million for the third quarter of 2014, down 2% year-over-year. Original equipment unit volume was down 3 %, primarily due to reduced vehicle production in Brazil.

Replacement tire shipments were down 1 %, due primarily to a decline in North America where markets were disrupted due to significant stockpiling of imported low-end tires in advance of potential tariffs being imposed in 2015.

“In the distorted North American industry environment, we remained committed to our strategy of pursuing profitable volume and we achieved record segment operating income in the quarter,” said Kramer.

Goodyear’s third quarter 2014 net income available to common shareholders was $161 million (58 cents per share). Excluding certain significant items, adjusted net income was $242 million (87 cents per share).

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