Goodyear Revises its Third Quarter Financial Results Upward
12 November 1999
Goodyear Revises its Third Quarter Financial Results Upward
AKRON, Ohio, Nov. 12 -- The Goodyear Tire & Rubber Company
said today that previously announced financial results have been revised for
the periods ended Sept. 30, 1999.
Net income for the third quarter has been increased to $109.1 million
(69 cents per share) from the $97.2 million (61 cents per share) reported on
Oct. 21, 1999. For the first nine months of 1999, net income has been
increased to $200.3 million ($1.26 per share) from $188.4 million ($1.18 per
share). All per share-amounts are diluted.
This revision is a result of the company completing an audited valuation
of the assets contributed to its European joint venture with Sumitomo Rubber
Industries Ltd. The one-time gain in other income resulting from the
transaction, previously estimated at $137.8 million ($131.8 million after tax,
83 cents per share), has been increased to $149.7 million ($143.7 million
after tax, 90 cents per share).
Additionally, Goodyear said it has revised segment results for its two
European-headquartered tire businesses. The change, however, did not impact
consolidated results.
Goodyear is the world's largest tire and rubber company. Headquartered in
Akron, Ohio, the company manufactures tires, engineered rubber products and
chemicals in more than 90 facilities in 30 countries. It has marketing
operations in almost every country around the world. Goodyear, with the
addition of its Dunlop tire joint ventures, employs more than 105,000 people
worldwide.
(Revised financial statements follow)
The Goodyear Tire & Rubber Company and Subsidiaries
Business Segment Information (revised)
(In millions) Third Quarter Nine Months
Ended Sept. 30 Ended Sept. 30
1999 1998 1999 1998
Sales
North American Tire $1,622.5 $1,603.8 $4,709.4 $4,678.0
European Union Tire 661.5 523.7 1,635.8 1,494.7
Eastern Europe, Africa &
Middle East Tire 212.3 222.6 582.8 626.4
Latin America Tire 234.7 302.6 694.5 965.1
Asia Tire 150.0 123.8 439.8 358.2
Engineered Products 297.9 311.9 935.3 970.5
Chemical Products 231.5 236.6 683.1 741.3
Operating Income (loss)
North American Tire $(108.6) $94.9 $7.4 $294.3
European Union Tire 42.7 39.8 123.3 147.8
Eastern Europe, Africa &
Middle East Tire 13.1 31.6 34.3 78.5
Latin America Tire 12.5 40.1 58.6 154.0
Asia Tire 5.5 1.6 16.9 9.4
Engineered Products 8.9 22.3 60.2 89.9
Chemical Products 36.5 34.5 95.4 109.4
Margin
North American Tire NA 5.9% NA 6.3%
European Union Tire 6.5% 7.6% 7.5% 9.9%
Eastern Europe, Africa &
Middle East Tire 6.2% 14.2% 5.9% 12.5%
Latin America Tire 5.3% 13.3% 8.4% 16.0%
Asia Tire 3.7% 1.3% 3.8% 2.6%
Engineered Products 3.0% 7.1% 6.4% 9.3%
Chemical Products 15.8% 14.6% 14.0% 14.8%
The Goodyear Tire & Rubber Company and Subsidiaries
Consolidated Statement of Income (revised)
(In millions, except per share)
Third Quarter Nine Months
Ended Sept. 30 Ended Sept. 30
1999 1998 1999 1998
Net Sales $3,288.8 $3,191.7 $9,328.7 $9,423.2
Cost of Goods Sold 2,764.6 2,469.8 7,531.2 7,193.7
Selling, Administrative
and General Expenses 515.4 471.5 1,435.4 1,382.4
Rationalizations 6.1 -- 163.9 (29.7)
Interest Expense 46.2 41.4 123.5 105.7
Other (Income) Expense (159.2) (44.3) (148.2) (72.5)
Foreign Currency
Exchange (1.3) (0.3) (34.8) (14.8)
Minority Interest in
Net Income of
Subsidiaries 12.1 9.7 23.1 25.6
Income from Continuing
Operations before
Income Taxes 104.9 243.9 234.6 832.8
United States and Foreign
Taxes on Income (4.2) 58.9 34.3 237.3
Income from Continuing
Operations 109.1 185.0 200.3 595.5
Discontinued Operations -- -- -- (34.7)
Net Income $109.1 $185.0 $200.3 $560.8
Per Share of Common Stock
- Basic Income from
Continuing Operations $0.70 $1.19 $1.28 $3.80
Discontinued Operations -- -- -- (0.22)
Net Income $0.70 $1.19 $1.28 $3.58
Average Shares
Outstanding 156.3 156.4 156.1 156.8
Per Share of Common Stock
- Diluted Income from
Continuing Operations $0.69 $1.17 $1.26 $3.75
Discontinued Operations -- -- -- (0.22)
Net Income $0.69 $1.17 $1.26 $3.53
Average Shares
Outstanding 159.5 157.8 159.0 158.7
The Goodyear Tire & Rubber Company and Subsidiaries
Consolidated Balance Sheet (revised)
(In millions) Sept. 30 Dec. 31
1999 1998
Assets
Current Assets
Cash and Cash Equivalents $ 233.4 $ 239.0
Accounts and Notes Receivable,
less allowance - $90.6
($54.9 in 1998) 2,639.4 1,770.7
Inventories
Raw Materials 378.0 369.9
Work in Process 100.0 87.5
Finished Product 1,807.0 1,707.1
Total 2,285.0 2,164.5
Investment in Sumitomo 136.1 --
Prepaid Expenses and Other
Current Assets 334.4 354.9
Total Current Assets 5,628.3 4,529.1
Long Term Accounts and
Notes Receivable 172.8 173.5
Investments in Affiliates, at Equity 127.4 111.4
Other Assets 75.0 99.5
Goodwill 636.5 259.0
Deferred Charges 983.4 1,058.3
Properties and Plants,
Less Accumulated Depreciation -
$5,499.2 ($5,394.6 in 1998) 5,512.0 4,358.5
Total Assets $13,135.4 $10,589.3
Liabilities
Current Liabilities
Accounts Payable - Trade $1,310.5 $1,131.7
Compensation and Benefits 812.0 751.0
Other Current Liabilities 375.9 351.9
United States and Foreign Taxes 141.4 252.6
Notes Payable to Banks 1,613.8 763.3
Sumitomo Cross-Investment 123.5 --
Long Term Debt due within One Year 157.1 26.0
Total Current Liabilities 4,534.2 3,276.5
Compensation and Benefits 2,189.4 1,945.9
Long Term Debt 1,673.3 1,186.5
Other Long Term Liabilities 173.0 175.6
Minority Equity in Subsidiaries 886.7 259.0
Total Liabilities 9,456.6 6,843.5
Shareholders' Equity
Preferred Stock, no par value
Authorized 50 shares, unissued -- --
Common Stock, no par value
Authorized 300 shares
Outstanding Shares - 156.3 (155.9 in 1998)
After Deducting 39.4 Treasury Shares
(39.7 in 1998) 156.3 155.9
Capital Surplus 1,029.0 1,015.9
Retained Earnings 3,537.5 3,477.8
Accumulated Other
Comprehensive Income (1,044.0) (903.8)
Total Shareholders' Equity 3,678.8 3,745.8
Total Liabilities and
Shareholders' Equity $13,135.4 $10,589.3