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.

Margins are the earnings engine. See how they work.

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:

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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.