Goodyear's Deep Tread: Fool by Numbers

On Nov. 9, Goodyear Tire & Rubber (NYSE: GT  ) released third-quarter 2006 earnings for the period ended Sept. 30.

• Revenues grew to a record $5.3 billion -- a 5% increase, or 6% if you exclude discontinued operations.
• Revenues grew despite lower unit production (because of exiting the private label business), thanks to higher prices and higher sales of more premium tires.
• All five tire segments saw increased sales, particularly the key North American market, which saw increases of nearly 12% over last year. Competitor Cooper Tire (NYSE: CTB  ) was unable to gain traction in the North American market this quarter.
• Even though a GAAP loss of $0.27 per share was recorded, taking out one-time expenses had the tire maker exceeding analysts' $0.24 per-share estimates
• Goodyear carries a three-star rating in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q3 2006	Q3 2005	Change
Sales	$0	$5,284	$5,030	5%
Net Profit	--	($48)	$142	N/A
EPS	$0.24	($0.27)	$0.70	N/A
Diluted Shares		177	209	(15.3%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	18.07%	20.34%	(2.27)
Operating Margin	0.34%	4.23%	(3.89)
Net Margin	(0.91%)	2.82%	(3.73)

*Expressed in percentage points.

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Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$1,314	$1,662	(20.9%)
Accounts Rec.	$3,837	$3,702	3.6%
Inventory	$3,222	$2,894	11.3%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$2,098	$1,859	12.9%
Long-Term Debt	$4,630	$4,944	(6.4%)

Learn the ways of the balance sheet.

Cash Flow Highlights

This information was not included in the press release.

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Related Companies:

• Cooper Tire & Rubber
• Bandag (NYSE: BDG  )
• Ford (NYSE: F  )
• Daimler-Chrysler (NYSE: DCX  )
• General Motors (NYSE: GM  )

Related Foolishness:

• Goodyear's Workers Hit the Road
• Goodyear Rolls On
• Goodyear Flattened

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Rich Duprey had positions in both Goodyear and Ford. Fool rules are here.