Goodyear loses $1.1 billion in fourth quarter

June 1, 2003
The Goodyear Tire & Rubber Co reported a net loss of $1.1 billion for the fourth quarter of 2002, compared with a net loss of $174.0 million in fourth-quarter

The Goodyear Tire & Rubber Co reported a net loss of $1.1 billion for the fourth quarter of 2002, compared with a net loss of $174.0 million in fourth-quarter 2001.

Results for the fourth quarter of 2002 include a previously announced non-cash charge of $1.08 billion to establish a valuation allowance against federal and state deferred tax assets. The fourth quarter also included after-tax gains of $11.1 million resulting from asset sales and a net after-tax benefit of $1.4 million from rationalization actions.

Goodyear reported sales of $3.53 billion for the fourth quarter of 2002, up 1.7% from $3.47 billion during the prior-year period. Tire unit volume in 2002's fourth quarter was 53.6 million units, down from 54.5 million units in the 2001 period.

The company's net loss for 2002 was $1.1 billion; for 2001, it had a net loss of $203.6 million.

The 2002 results include the non-cash tax valuation allowance charge of $1.08 billion, a net after-tax gain of $22.0 million resulting from asset sales, and net after-tax charges of $8.8 million from rationalization actions.

Net sales for 2002 were $13.9 billion, down 2.1% from $14.1 billion in 2001. Tire volume was 214.3 million units, down 5.0 million units, or 2.3%, for the year.