Goodyear expects its third quarter to go from red to black as it posts record sales in this year's third quarter. The tiremaker expects to report per-share earnings in the range of 19 cents to 21 cents. That result compares to a loss of 68 cents per share in the third quarter of 2003. Goodyear said the improvement was driven by higher segment operating income in all seven of the company's businesses. Third-quarter sales at Goodyear are expected to be a record of approximately $4.7 billion, up from $3.9 billion in the third quarter of 2003. Improved pricing and product mix and higher unit volume contributed to the sales growth. Goodyear said the latest third quarter will include previously announced rationalization charges, mostly related to cost-reduction activities in the company's non-tire businesses, which were largely offset by favorable tax adjustments related to the settlement of prior-year tax liabilities. Goodyear also announced that it will file an amended 2003 Form 10-K that will include additional financial disclosures related to certain affiliates, the results of which were included on an equity basis. This amended Form 10-K filing will include a restatement of the company's prior-period financial statements, including its first and second quarter 2004 Form 10-Qs, to reflect after-tax expense adjustments of approximately $4.6 million. Most of these adjustments were identified through the implementation of the company's previously announced measures to improve its financial controls. In addition to these adjustments, the company identified a misclassification of deferred income tax assets and liabilities in its consolidated balance sheet at Dec. 31, 2003. The misclassification overstated total assets and total liabilities by approximately $360 million each. As part of the restatement, Goodyear will correct the misclassification, which will also impact the March 31, 2004 and June 30, 2004, consolidated balance sheets by equivalent amounts. Goodyear said the correction has no impact on shareholders' equity, net income or cash flows. http://crainscleveland.com/news.cms?newsId=2694
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