EX-99 2 l13400aexv99.htm EX-99 SEGMENT INFORMATION Exhibit 99
 

Exhibit 99

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                                 
    Three Months Ended  
    March 31,     June 30,     Sept. 30,     Dec. 31,  
(In millions)   2004     2004     2004     2004  
Net Sales
                                
North American Tire
   $ 1,938.3     $ 2,170.5     $ 2,257.0     $ 2,202.8  
European Union Tire
     1,110.7       1,060.4       1,084.7       1,220.4  
Eastern Europe, Middle East and Africa Tire
     283.0       300.8       344.6       350.6  
Latin American Tire
     302.6       291.4       315.7       335.7  
Asia/Pacific Tire
     322.6       328.0       319.9       341.5  
 
                        
Total Tires
     3,957.2       4,151.1       4,321.9       4,451.0  
Engineered Products
     344.7       368.1       377.2       380.3  
 
                        
Total Segment Sales
     4,301.9       4,519.2       4,699.1       4,831.3  
Other
     —       0.2       15.1       3.6  
 
                        
 
   $ 4,301.9     $ 4,519.4     $ 4,714.2     $ 4,834.9  
 
                        
Segment Operating Income
                                
North American Tire
   $ (24.0 )   $ 40.6     $ 27.6     $ 29.3  
European Union Tire
     69.8       56.7       68.4       57.8  
Eastern Europe, Middle East and Africa Tire
     42.6       45.8       59.8       45.6  
Latin American Tire
     61.7       61.8       63.9       63.8  
Asia/Pacific Tire
     8.4       16.6       19.5       16.6  
 
                        
Total Tires
     158.5       221.5       239.2       213.1  
Engineered Products
     22.0       32.8       34.0       24.4  
 
                        
Total Segment Operating Income
     180.5       254.3       273.2       237.5  
Rationalizations and asset sales
     (21.0 )     (8.3 )     (27.1 )     (3.4 )
Accelerated depreciation, asset impairment and writeoffs
     (4.3 )     (0.6 )     (2.2 )     (3.3 )
Interest expense
     (84.1 )     (88.5 )     (95.7 )     (100.5 )
Foreign currency exchange
     (6.0 )     2.1       (10.6 )     (8.9 )
Minority interest in net (income) loss of subsidiaries
     (6.1 )     (18.6 )     (18.7 )     (14.4 )
Financing fees and financial instruments
     (33.3 )     (27.2 )     (29.2 )     (26.8 )
Equity in earnings (losses) of corporate affiliates
     (0.1 )     0.7       0.4       —  
General and product liability — discontinued products
     (9.2 )     (8.0 )     (8.1 )     (27.4 )
Expenses for insurance fire loss deductibles
     (11.7 )     —       —       —  
Professional fees — investigation and restatement
     (15.3 )     (9.0 )     (2.2 )     (3.7 )
Professional fees — Sarbanes-Oxley
     (1.3 )     (0.7 )     (10.5 )     (5.7 )
Expenses for environmental remediation
     (3.0 )     (2.0 )     (3.2 )     (3.5 )
Environmental insurance settlement
     —       —       —       156.6  
Other
     (6.4 )     (4.5 )     0.7       (9.0 )
 
                        
Income (Loss) before Income Taxes
   $ (21.3 )   $ 89.7     $ 66.8     $ 187.5  
 
                        

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                                 
    Year to Date  
    March 31,     June 30,     Sept. 30,     Dec. 31,  
(In millions)   2004     2004     2004     2004  
Net Sales
                                
North American Tire
   $ 1,938.3     $ 4,108.8     $ 6,365.8     $ 8,568.6  
European Union Tire
     1,110.7       2,171.1       3,255.8       4,476.2  
Eastern Europe, Middle East and Africa Tire
     283.0       583.8       928.4       1,279.0  
Latin American Tire
     302.6       594.0       909.7       1,245.4  
Asia/Pacific Tire
     322.6       650.6       970.5       1,312.0  
 
                        
Total Tires
     3,957.2       8,108.3       12,430.2       16,881.2  
Engineered Products
     344.7       712.8       1,090.0       1,470.3  
 
                        
Total Segment Sales
     4,301.9       8,821.1       13,520.2       18,351.5  
Other
     —       0.2       15.3       18.9  
 
                        
 
   $ 4,301.9     $ 8,821.3     $ 13,535.5     $ 18,370.4  
 
                        
Segment Operating Income
                                
North American Tire
   $ (24.0 )   $ 16.6     $ 44.2     $ 73.5  
European Union Tire
     69.8       126.5       194.9       252.7  
Eastern Europe, Middle East and Africa Tire
     42.6       88.4       148.2       193.8  
Latin American Tire
     61.7       123.5       187.4       251.2  
Asia/Pacific Tire
     8.4       25.0       44.5       61.1  
 
                        
Total Tires
     158.5       380.0       619.2       832.3  
Engineered Products
     22.0       54.8       88.8       113.2  
 
                        
Total Segment Operating Income
     180.5       434.8       708.0       945.5  
Rationalizations and asset sales
     (21.0 )     (29.3 )     (56.4 )     (59.8 )
Accelerated depreciation, asset impairment and writeoffs
     (4.3 )     (4.9 )     (7.1 )     (10.4 )
Interest expense
     (84.1 )     (172.6 )     (268.3 )     (368.8 )
Foreign currency exchange
     (6.0 )     (3.9 )     (14.5 )     (23.4 )
Minority interest in net (income) loss of subsidiaries
     (6.1 )     (24.7 )     (43.4 )     (57.8 )
Financing fees and financial instruments
     (33.3 )     (60.5 )     (89.7 )     (116.5 )
Equity in earnings (losses) of corporate affiliates
     (0.1 )     0.6       1.0       1.0  
General and product liability — discontinued products
     (9.2 )     (17.2 )     (25.3 )     (52.7 )
Expenses for insurance fire loss deductibles
     (11.7 )     (11.7 )     (11.7 )     (11.7 )
Professional fees — investigation and restatement
     (15.3 )     (24.3 )     (26.5 )     (30.2 )
Professional fees — Sarbanes-Oxley
     (1.3 )     (2.0 )     (12.5 )     (18.2 )
Expenses for environmental remediation
     (3.0 )     (5.0 )     (8.2 )     (11.7 )
Environmental insurance settlement
     —       —       —       156.6  
Other
     (6.4 )     (10.9 )     (10.2 )     (19.2 )
 
                        
Income (Loss) before Income Taxes
   $ (21.3 )   $ 68.4     $ 135.2     $ 322.7  
 
                        

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                                 
    Three Months Ended  
    March 31,     June 30,     Sept. 30,     Dec. 31,  
(In millions)   2003     2003     2003     2003  
Net Sales
                                
North American Tire
   $ 1,714.0     $ 1,816.4     $ 1,929.7     $ 1,819.1  
European Union Tire
     928.6       961.7       985.6       1,045.6  
Eastern Europe, Middle East and Africa
     227.4       268.6       283.2       294.2  
Latin American Tire
     231.7       258.3       262.1       288.9  
Asia/Pacific Tire
     140.7       149.1       140.1       151.9  
 
                        
Total Tires
     3,242.4       3,454.1       3,600.7       3,599.7  
Engineered Products
     291.9       299.0       299.9       312.9  
 
                        
Total Segment Sales
     3,534.3       3,753.1       3,900.6       3,912.6  
Other
     12.2       1.0       6.1       2.2  
 
                        
 
   $ 3,546.5     $ 3,754.1     $ 3,906.7     $ 3,914.8  
 
                        
Segment Operating Income
                                
North American Tire
   $ (59.7 )   $ (8.0 )   $ (37.5 )   $ 2.7  
European Union Tire
     22.6       37.7       49.2       20.3  
Eastern Europe, Middle East and Africa Tire
     20.9       34.4       43.5       47.8  
Latin American Tire
     26.8       34.0       44.0       43.8  
Asia/Pacific Tire
     13.2       12.7       10.3       13.7  
 
                        
Total Tires
     23.8       110.8       109.5       128.3  
Engineered Products
     (8.7 )     20.1       13.6       21.8  
 
                        
Total Segment Operating Income
     15.1       130.9       123.1       150.1  
Rationalizations and asset sales
     (60.4 )     (30.1 )     (60.2 )     (165.9 )
Accelerated depreciation, asset impairment and writeoffs
     (7.5 )     (0.7 )     (0.5 )     (124.1 )
Interest expense
     (58.4 )     (82.4 )     (78.9 )     (76.6 )
Foreign currency exchange
     (1.8 )     (18.6 )     (10.9 )     (9.4 )
Minority interest in net (income) loss of subsidiaries
     (9.4 )     (12.7 )     (8.7 )     (2.0 )
Financing fees and financial instruments
     (28.0 )     (25.1 )     (18.8 )     (27.5 )
Equity in earnings (losses) of corporate affiliates
     (4.5 )     (4.2 )     (2.1 )     (7.5 )
General and product liability — discontinued products
     (19.1 )     9.1       (62.5 )     (65.6 )
Professional fees — investigation and restatement
     —       —       —       (6.3 )
Professional fees — Sarbanes-Oxley
     —       —       (0.1 )     —  
Expenses for environmental remediation
     (2.5 )     (1.5 )     4.5       (0.5 )
Other
     7.7       (7.7 )     (3.3 )     (24.8 )
 
                        
Income (Loss) before Income Taxes
   $ (168.8 )   $ (43.0 )   $ (118.4 )   $ (360.1 )
 
                        

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                                 
    Year to Date  
    March 31,     June 30,     Sept. 30,     Dec. 31,  
(In millions)   2003     2003     2003     2003  
Net Sales
                                
North American Tire
   $ 1,714.0     $ 3,530.4     $ 5,460.1     $ 7,279.2  
European Union Tire
     928.6       1,890.3       2,875.9       3,921.5  
Eastern Europe, Middle East and Africa Tire
     227.4       496.0       779.2       1,073.4  
Latin American Tire
     231.7       490.0       752.1       1,041.0  
Asia/Pacific Tire
     140.7       289.8       429.9       581.8  
 
                        
Total Tires
     3,242.4       6,696.5       10,297.2       13,896.9  
Engineered Products
     291.9       590.9       890.8       1,203.7  
 
                        
Total Segment Sales
     3,534.3       7,287.4       11,188.0       15,100.6  
Other
     12.2       13.2       19.3       21.5  
 
                        
 
   $ 3,546.5     $ 7,300.6     $ 11,207.3     $ 15,122.1  
 
                        
Segment Operating Income
                                
North American Tire
   $ (59.7 )   $ (67.7 )   $ (105.2 )   $ (102.5 )
European Union Tire
     22.6       60.3       109.5       129.8  
Eastern Europe, Middle East and Africa Tire
     20.9       55.3       98.8       146.6  
Latin American Tire
     26.8       60.8       104.8       148.6  
Asia/Pacific Tire
     13.2       25.9       36.2       49.9  
 
                        
Total Tires
     23.8       134.6       244.1       372.4  
Engineered Products
     (8.7 )     11.4       25.0       46.8  
 
                        
Total Segment Operating Income
     15.1       146.0       269.1       419.2  
Rationalizations and asset sales
     (60.4 )     (90.5 )     (150.7 )     (316.6 )
Accelerated depreciation, asset impairment and writeoffs
     (7.5 )     (8.2 )     (8.7 )     (132.8 )
Interest expense
     (58.4 )     (140.8 )     (219.7 )     (296.3 )
Foreign currency exchange
     (1.8 )     (20.4 )     (31.3 )     (40.7 )
Minority interest in net (income) loss of subsidiaries
     (9.4 )     (22.1 )     (30.8 )     (32.8 )
Financing fees and financial instruments
     (28.0 )     (53.1 )     (71.9 )     (99.4 )
Equity in earnings (losses) of corporate affiliates
     (4.5 )     (8.7 )     (10.8 )     (18.3 )
General and product liability — discontinued products
     (19.1 )     (10.0 )     (72.5 )     (138.1 )
Professional fees — investigation and restatement
     —       —       —       (6.3 )
Professional fees — Sarbanes-Oxley
     —       —       (0.1 )     (0.1 )
Expenses for environmental remediation
     (2.5 )     (4.0 )     0.5       —  
Other
     7.7       —       (3.3 )     (28.1 )
 
                        
Income (Loss) before Income Taxes
   $ (168.8 )   $ (211.8 )   $ (330.2 )   $ (690.3 )
 
                        

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment sales and operating income, and the reconciliation of segment operating income to Income (Loss) before Income Taxes, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                         
(In millions)   2004     2003     2002  
Net Sales
                        
North American Tire
   $ 8,568.6     $ 7,279.2     $ 7,097.7  
European Union Tire
     4,476.2       3,921.5       3,319.4  
Eastern Europe, Middle East and Africa Tire
     1,279.0       1,073.4       807.1  
Latin American Tire
     1,245.4       1,041.0       947.7  
Asia/Pacific Tire
     1,312.0       581.8       531.3  
 
                  
Total Tires
     16,881.2       13,896.9       12,703.2  
Engineered Products
     1,470.3       1,203.7       1,126.3  
 
                  
Total Segment Sales
     18,351.5       15,100.6       13,829.5  
Other
     18.9       21.5       26.5  
 
                  
 
   $ 18,370.4     $ 15,122.1     $ 13,856.0  
 
                  
Segment Operating Income
                        
North American Tire
   $ 73.5     $ (102.5 )   $ (21.5 )
European Union Tire
     252.7       129.8       101.1  
Eastern Europe, Middle East and Africa Tire
     193.8       146.6       93.2  
Latin American Tire
     251.2       148.6       107.6  
Asia/Pacific Tire
     61.1       49.9       43.7  
 
                  
Total Tires
     832.3       372.4       324.1  
Engineered Products
     113.2       46.8       39.0  
 
                  
Total Segment Operating Income
     945.5       419.2       363.1  
Rationalizations and asset sales
     (59.8 )     (316.6 )     22.5  
Accelerated depreciation, asset impairment and asset write-offs
     (10.4 )     (132.8 )     —  
Interest expense
     (368.8 )     (296.3 )     (242.7 )
Foreign currency exchange
     (23.4 )     (40.7 )     8.7  
Minority interest in net (income) loss of subsidiaries
     (57.8 )     (32.8 )     (55.6 )
Financing fees and financial instruments
     (116.5 )     (99.4 )     (48.4 )
Equity in earnings (losses) of corporate affiliates
     1.0       (18.3 )     (15.7 )
General and product liability — discontinued products
     (52.7 )     (138.1 )     (33.8 )
Expenses for insurance fire loss deductibles
     (11.7 )     —       —  
Professional fees — investigation and restatement
     (30.2 )     (6.3 )     —  
Professional fees — Sarbanes-Oxley
     (18.2 )     (0.1 )     —  
Expenses for environmental remediation
     (11.7 )     —       (8.3 )
Environmental insurance settlement
     156.6       —       —  
Other
     (19.2 )     (28.1 )     (8.8 )
 
                  
Income (Loss) before Income Taxes
   $ 322.7     $ (690.3 )   $ (19.0 )
 
                  

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment assets at December 31, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                 
(In millions)   2004     2003  
Assets
                
North American Tire
   $ 5,692.5     $ 5,687.3  
European Union Tire
     4,264.0       4,001.9  
Eastern Europe, Middle East and Africa Tire
     1,315.1       1,102.7  
Latin American Tire
     845.6       710.0  
Asia/Pacific Tire
     1,153.8       669.5  
 
            
Total Tires
     13,271.0       12,171.4  
Engineered Products
     764.7       680.5  
 
            
Total Segment Assets
     14,035.7       12,851.9  
Corporate
     2,497.6       1,849.2  
 
            
 
   $ 16,533.3     $ 14,701.1  
 
            

Portions of the items included in the Rationalizations and Other (Income) and Expense footnotes, were not charged (credited) to the SBUs for performance evaluation purposes but were attributable to the SBUs, on a pro forma basis reflecting the integration of Chemical Products into North American Tire, as follows:

                         
(In millions)   2004     2003     2002  
Rationalizations
                        
North American Tire
   $ 8.4     $ 191.9     $ (1.9 )
European Union Tire
     23.1       54.3       (0.4 )
Eastern Europe, Middle East and Africa Tire
     3.6       (0.1 )     (0.4 )
Latin American Tire
     (1.7 )     10.0       —  
Asia/Pacific Tire
     —       —       (1.7 )
 
                  
Total Tires
     33.4       256.1       (4.4 )
Engineered Products
     22.8       29.4       4.6  
 
                  
Total Segment Rationalizations
     56.2       285.5       0.2  
Corporate
     (0.6 )     6.0       5.3  
 
                  
 
   $ 55.6     $ 291.5     $ 5.5  
 
                  
Other (Income) and Expense
                        
North American Tire
   $ 13.2     $ 3.8     $ 4.1  
European Union Tire
     (6.2 )     1.5       (13.7 )
Eastern Europe, Middle East and Africa Tire
     0.1       —       —  
Latin American Tire
     —       (2.0 )     (13.7 )
Asia/Pacific Tire
     —       (2.1 )     —  
 
                  
Total Tires
     7.1       1.2       (23.3 )
Engineered Products
     (2.5 )     6.3       (0.6 )
 
                  
Total Segment Other (Income) and Expense
     4.6       7.5       (23.9 )
Corporate
     3.6       255.9       80.7  
 
                  
 
   $ 8.2     $ 263.4     $ 56.8  
 
                  

 

 

THE GOODYEAR TIRE & RUBBER COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
Unaudited

The following table presents segment capital expenditures, depreciation and amortization, on a pro forma basis reflecting the integration of Chemical Products into North American Tire:

                         
(In millions)   2004     2003     2002  
Capital Expenditures
                        
North American Tire
   $ 171.2     $ 144.0     $ 250.5  
European Union Tire
     111.6       84.5       84.8  
Eastern Europe, Middle East and Africa Tire
     56.4       31.7       20.2  
Latin American Tire
     64.6       35.3       19.3  
Asia/Pacific Tire
     66.6       48.7       30.2  
 
                  
Total Tires
     470.4       344.2       405.0  
Engineered Products
     28.1       16.8       21.3  
 
                  
Total Segment Capital Expenditures
     498.5       361.0       426.3  
Corporate
     20.1       14.4       31.8  
 
                  
 
   $ 518.6     $ 375.4     $ 458.1  
 
                  
Depreciation and Amortization
                        
North American Tire
   $ 303.3     $ 313.7     $ 310.0  
European Union Tire
     129.7       120.4       119.6  
Eastern Europe, Middle East and Africa Tire
     45.8       44.1       44.2  
Latin American Tire
     24.3       19.6       23.4  
Asia/Pacific Tire
     51.6       30.9       29.5  
 
                  
Total Tires
     554.7       528.7       526.7  
Engineered Products
     32.9       39.1       33.1  
 
                  
Total Segment Depreciation and Amortization
     587.6       567.8       559.8  
Corporate
     41.1       123.8       45.5  
 
                  
 
   $ 628.7     $ 691.6     $ 605.3