The Goodyear Tire & Rubber Company Business Report FY2011

Business Highlights

Financial Overview

(in million dollars)
  FY2011 FY2010 Rate of
Net Sales 22,767 18,832 20.9 1)
Operating profit 1,368 917 49.2 -

-Net sales in FY2011 increased by 20.9% year-on-year, due primarily to favorable changes in price and product mix of 2.6 billion dollars, increased sales in other tire-related businesses of 875 million dollars, primarily in North American Tire's third party sales of chemical products, and 599 million dollars due to favorable foreign currency translation.

Sales Units

-The worldwide tire unit sales in the replacement and OE markets during the period indicated were as follows.
  (in million of tires)
  FY2011 FY2010 FY2009
North American Replacement tire units 50.0 50.8


OE 16.0 15.9 12.7
Europe, Middle East and Africa Tire Replacement tire units 56.8 55.6 52.8
OE 17.5 16.4 13.2
Latin America Replacement tire units 13.0 13.9 13.1
OE 6.8 6.8 6.0
Asia pacific Replacement tire units 12.4 12.7 12.1
OE 8.1 8.7 7.1
Total Replacement tire units 132.2 133.0 128.0
OE 48.4 47.8 39.0
Total 180.6 180.8 167.0

-Worldwide tire unit sales in FY2011 decreased by 0.1% (0.2 million units) year-on-year.

-In Europe, Middle East and Africa, OE volume increased 1.1 million units, or 6.7%, due to increased demand in both our consumer and commercial businesses due to increased vehicle production.


-The Company announced that it has agreed to sell its wire business to Korea-based Hyosung Corporation which produces tire reinforcements. Goodyear will receive approximately 50 million USD for the business. The business, which manufactures tire reinforcement wire in Asheboro, North Carolina, U.S. and Colmar-Berg, Luxembourg, employs about 600 people. The sale is expected to close in the third quarter of 2011. Goodyear sold its tire fabric operations to Hyosung in 2006. (From a press release on June 10, 2011)

Plant Closure

-The Company announced that it has closed its tire manufacturing facility in Union City, Tennessee, U.S. In February 2011, the company had announced its intention to close the plant by the end of 2011. (From a press release on July 11, 2011)


-The Company announced that its Eagle F1 Supercar tires are fitted to the new 2012 Fisker Karma EVer hybrid. The tire sizes are 285/35/R22 (rear) and 255/35/R22 (front). (From a press release on September 20, 2011)

-The Company announced that Scion has selected the Company's tire, Assurance Fuel Max, as the original equipment fitment for the 2012 Toyota Scion iQ, which will start appearing in dealer showrooms this October. The tire size will be P175/60R16. The Company is also supplying Assurance Fuel Max tires for the Toyota Prius, Chevrolet Volt, Chevrolet Cruze Eco and Ford Fusion S. (From a press release on September 9, 2011)

-The Company announced that Assurance Fuel Max tires have been selected as original equipment for 2011 Chevrolet Cruze Eco. (From a press release on May 27, 2011)


R&D Expenditure

(in million USD)
  FY2011 FY2010 FY2009
Overall 369 342 337

R&D Structure

-The Company owns and operates two research and development facilities and technical centers.

R&D Activities

-The Company announced that it is currently developing Air Maintenance Technology (AMT) system, which will enable tires to remain inflated at the optimum pressure without the need for any external pumps or electronics. All components of the AMT system, including the miniaturized pump, will be fully contained within the tire. The United States Department of Energy's Office of Vehicle Technology announced it has awarded a 1.5 million dollars grant for research and development of the AMT system for commercial truck tires. The grant will be administered by the National Energy Technology Laboratory and work will be conducted at Goodyear's Innovation Center in Akron, Ohio. In addition, The DOE's Office of Vehicle Technology today also announced that it will award a 1.5 million dollars grant for a joint project between PPG Industries, based in Pennsylvania, U.S., and Goodyear to improve the rolling resistance and fuel efficiency of tires. (From a press release on August 11, 2011)

Investment Activities

Capital Expenditure

(in million USD)
  FY2011 FY2010 FY2009
North American Tire 236 319 306
Europe, Middle East and Africa Tire 240 183 212
Latin American Tire 237 135 76
Asia Pacific Tire 314 281 134
Total Segment Capital Expenditures 1,027 918 728
Corporate 16 26 18
Total 1,043 944 746

Investment in USA

-The Company announced that it broke ground on its new headquarters complex. The project is scheduled to be completed in early 2013. At that time, the Company will relocate about 2,000 associates into the building, which will serve as headquarters for the company's global operations and North American tire business team. (From a press release on April 18, 2011)