Goodyear Tire & Rubber Co. said Thursday that it lost $1.1 billion in the fourth quarter and for all of 2002, its biggest losses ever, due to a large previously disclosed charge.
The Akron-based tiremaker lost $1.1 billion, or $6.30 a share, in the fourth quarter, compared with a loss of $174 million, or $1.07 a share, in the year-ago period. Sales rose to $3.53 billion from $3.47 billion.
The results had been expected. Goodyear said last month it would take a $1.1 billion fourth-quarter charge for deferred tax assets, and tipped its hand on the size of the loss in a securities filing late Tuesday.
But company officials said its recent debt refinancing deal would enable it to do better, though analysts remain concerned about a $5 billion debt load. The release of Goodyear’s financial results was delayed as it worked on replacing $2.94 billion in financing with $3.3 billion in secured credit.
Goodyear lost market share to Bridgestone Corp. last year even as the rival tiremaker dealt with fallout from the 2000 recall of Firestone-brand tires that regulators linked to 271 deaths, said Morgan Stanley analyst Steve Girsky.
“There’s no reason they [Goodyear] shouldn’t be making money in this environment,” said Girsky. “Firestone was in a lot of trouble and Goodyear couldn’t capitalize on it.”
For all of 2002, Goodyear lost $1.1 billion, or $6.62 a share, on sales of $13.85 billion. In 2001, the company lost $203.6 million, or $1.27 a share, on sales of $14.15 billion. Goodyear’s previous largest full-year loss was $658 million in 1992.
The per-share figure for the full year was larger than for the fourth quarter because Goodyear had fewer shares outstanding on average for the year than it did for the quarter.
Goodyear sold 214.3 million tires last year, down 2.3 percent from 2001.
Shares of Goodyear closed up 33 cents at $5.74 on the New York Stock Exchange.
– American Greetings Corp. said it swung to a fourth-quarter profit, as it reaped the benefits of last year’s restructuring plan in which the Cleveland-based greeting card company laid off workers and closed plants.
American Greetings made $45.4 million, or 60 cents a share, compared with a loss of $13.1 million, or 20 cents a share, a year earlier. The most recent result met Wall Street estimates. Sales fell to $525.9 million from $562.1 million.
For the full fiscal year, American Greetings earned $121 million, or $1.63 a share, compared with a loss of $122 million, or $1.92 a share, in the previous fiscal year. Sales rose to $2 billion from $1.93 billion.
Shares of American Greetings closed down 35 cents at $13.11 on the NYSE.
