Goodyear Monthly Investor Update

AKRON, Ohio, Aug. 20 Goodyear's Investor Relations department today published its monthly update for individuals interested in tracking Goodyear's progress on a more frequent basis.

July Operating Highlights

North American Tire -- In July, industry shipments of consumer replacement tires were 7 percent below last year's levels. Goodyear shipments were also down and below industry shipment levels. Industry shipments excluding the July 2001 Ford recall of Firestone tires were flat.

-- Goodyear's shipments to its large wholesalers continued to improve in July. However, volumes are not yet back to last year's levels resulting in a less-favorable brand and product mix for replacement tires.

-- In July, industry shipments of commercial replacement tires were up 8 percent from last year's levels. Goodyear's shipments of commercial replacement tires were below industry shipment levels.

-- Industry shipments in July to original equipment customers were up 16 percent from a year ago for consumer tires and up 30 percent for commercial tires as commercial vehicle manufacturers continue to build ahead of regulation changes. Goodyear's OE unit shipments were below the industry for both consumer and commercial tires.

-- Raw material costs continue to remain favorable over prior year.

European Union -- In July, industry replacement tire shipments were up 4 percent for consumer tires and up 7 percent for commercial tires compared to prior year levels. Goodyear's consumer tire shipments were above industry levels while commercial shipments were below.

-- Industry OE consumer tire shipments were down 3 percent compared to the prior year while Goodyear's shipments were above prior year. Industry OE commercial shipments were down 17 percent, Goodyear's shipments were down but less than the industry.

-- Operating income in July was positively impacted by higher replacement volumes and lower raw material costs.

-- The euro, at 0.98 to the U.S. dollar, weakened about 2 percent in July. However, year-to-date, the euro has strengthened about 9 percent.

Eastern Europe -- In July, Goodyear replacement tire unit sales were up significantly from 2001, primarily due to overall market recoveries in South Africa, Slovenia and Poland.

-- OE tire unit sales for Goodyear in July were up slightly from last year due to improved shipments in Turkey.

-- Productivity improvements and higher volume due to higher capacity utilization have helped to improve operating income over last year.

Latin America -- July replacement tire unit sales were up primarily due to strong commercial sales in Brazil.

-- July OE tire unit sales were down from last year due to soft consumer shipments in Mexico.

-- Volume and mix improvements and lower raw material costs more than offset the negative effect of currency volatility resulting in higher operating income performance compared to prior year.

-- Currency devalued 16 percent in Brazil in the month of July.

Asia -- July replacement and OE tire unit sales were significantly above last year's levels. -- Improved mix and volume and lower raw material costs helped to increase operating income above last year.

Engineered Products -- July sales increased slightly over prior year due to strong shipments of OE and military products.

-- Cost reduction programs have helped to improve operating income compared to prior year.

Chemicals -- In July, sales were impacted by reduced sales volume of synthetic rubber.

-- Despite lower sales, operating income in July was above prior year levels.

Corporate News -- Gary D. Forsee, vice chairman of domestic operations for BellSouth Corp., has been elected to Goodyear's board of directors. Forsee, 52, is responsible for all of BellSouth's domestic operations.

-- Goodyear's board of directors has elected three corporate officers: Kathleen T. Geier, 45, senior vice president, human resources; John G. Loulan, 56, vice president - operations, manufacturing and supply chain - North American Tire; and Darren R. Wells, 36, vice president and treasurer.

-- Goodyear has been named a winner of the prestigious CIO-100 award by CIO magazine. The 2002 CIO-100 awards honor organizations worldwide that demonstrate excellence in using integrated processes and information technology to improve products, services and relationships with customers.

-- For the first time in almost 40 years, four Goodyear blimps will grace the sky in formation following the Sept. 5 christening of the fleet's newest airship, the Spirit of America in Akron. The new blimp will replace the California-based Eagle, which is being retired.