Goodyear Reports Higher First Quarter Earnings

                Goodyear Reports Higher First Quarter Earnings

- Segment operating income increases, despite weakness in Europe

- Three of four businesses report operating income growth

- North American Tire earnings up 59%, new first quarter record

- Full-year segment operating income outlook remains at $1.4 to $1.5 billion

- Company continues to target positive cash flow in 2013, excluding pension
pre-funding

PR Newswire

AKRON, Ohio, April 26, 2013

AKRON, Ohio, April 26, 2013 /PRNewswire/ -- The Goodyear Tire & Rubber Company
(NASDAQ: GT) today reported higher earnings for the first quarter of 2013
compared to the year-ago quarter.

(Logo: http://photos.prnewswire.com/prnh/20050204/GTLOGO )

"Despite a tough economic environment, we continue to achieve solid earnings
improvement," said Richard J. Kramer, chairman and chief executive officer.
"Our first quarter earnings demonstrate that our strategic focus on improving
productivity and selling innovative products in targeted market segments where
our brands add value is working, especially in North America, where our
business continues to outperform expectations."

Three of Goodyear's four regional businesses posted higher earnings with North
America and Asia Pacific posting record first quarter operating income. Asia
Pacific and Latin America achieved both increased tire unit volume and higher
operating income.

"In Europe, we are taking steps to address weak industry demand brought about
by recessionary conditions that continue to impact the auto and tire
industries. We are executing a three-point plan to address profitability in
this region," Kramer added.

"We remain confident in our full-year outlook and continue to expect global
segment operating income of $1.4 billion to $1.5 billion in 2013, which would
be up more than 12 percent from 2012 and a record," he said. The company
continues to target positive cash flow in 2013, excluding pension pre-funding.

Goodyear's first quarter 2013 sales were $4.9 billion, compared to $5.5
billion a year ago. First quarter 2013 sales reflect $364 million in lower
tire unit volumes; $178 million in lower sales in other tire related
businesses, most notably third party chemical sales in North America, and $115
million in unfavorable foreign currency translation. Tire unit volumes
totaled 39.5 million, down 8 percent from 2012, primarily reflecting lower
volumes in Europe.

The company reported segment operating income of $302 million in the first
quarter of 2013. This was up 3 percent from the year-ago quarter, reflecting
$230 million in lower raw material costs (before the benefit of cost savings
actions) and cost-reduction activities that exceeded inflation, partially
offset by $138 million in lower tire volume and associated unabsorbed overhead
costs, lower price/mix of $71 million and $17 million in unfavorable foreign
currency translation. See the note at the end of this release for further
explanation and a segment operating income reconciliation table.

Goodyear's first quarter 2013 net income available to common shareholders was
$26 million (10 cents per share), compared to a net loss of $11 million (5
cents per share) in the 2012 quarter. All per share amounts are diluted.

The 2013 first quarter included a $92 million (37 cents per share) net foreign
currency remeasurement loss resulting from the devaluation of the Venezuelan
bolivar fuerte; $9 million (4 cents per share) in rationalizations, asset
write-offs and accelerated depreciation; a loss of $2 million (1 cent per
share) from asset sales; and net gains of $12 million (5 cents per share) due
primarily to tax law changes and $6 million (2 cents per share) from insurance
recoveries related to the impact of the 2011 Thailand flood. All amounts are
after taxes and minority interest.

The company's free cash flow from operations was a use of $276 million for the
first quarter of 2013. See the note at the end of this release for further
explanation and a free cash flow from operations reconciliation table.

See the table at the end of this release for a list of significant items
impacting the 2013 and 2012 quarters.

First Quarter Business Segment Results

North American Tire
                            First Quarter
(in millions)               2013    2012
Tire Units                  14.8    15.8
Sales                       $2,166  $2,497
Segment Operating Income  $127    $80
Segment Operating Margin    5.9%    3.2%

North America's first quarter 2013 sales decreased 13 percent from last year
to $2.2 billion. Sales reflect a 6 percent decrease in tire unit volume and
lower price/mix. Original equipment unit volume was flat. Replacement tire
shipments were down 9 percent, reflecting weak industry demand and decreased
sales of lower-value consumer tires. 

First quarter 2013 segment operating income of $127 million was a 59 percent
improvement over the prior year and a first quarter record. Segment operating
income was positively impacted by $163 million in lower raw material costs.
This was partially offset by $58 million resulting from decreased volume and
unabsorbed overhead from related production cuts, $47 million in lower
price/mix and $18 million primarily due to lower third party chemical sales.

Europe, Middle East and Africa Tire


                         First Quarter
(in millions)            2013    2012
Tire Units               15.1    18.0
Sales                    $1,607  $1,938
Segment Operating Income $31     $90
Segment Operating Margin 1.9%    4.6%

Europe, Middle East and Africa's first quarter sales decreased 17 percent from
last year to $1.6 billion. Sales reflect a 16 percent decrease in tire unit
volume, primarily due to economic weakness in the region, as well as
unfavorable foreign currency translation of $38 million. Original equipment
unit volume was down 12 percent. Replacement tire shipments were down 18
percent. 

First quarter 2013 segment operating income of $31 million was $59 million
below the prior year. Lower raw material costs of $89 million were offset by
the $83 million impact of reduced volume and unabsorbed overhead from related
production cuts and $62 million in lower price/mix.

Latin American Tire


                         First Quarter
(in millions)            2013    2012
Tire Units               4.5     4.3
Sales                    $513    $521
Segment Operating Income $60     $55
Segment Operating Margin 11.7%   10.6%

Latin America's first quarter sales decreased $8 million from last year to
$513 million. Sales were negatively impacted by $62 million in unfavorable
foreign currency translation and $33 million related to the sale of the bias
truck tire business. These were partially offset by a 5 percent increase in
tire unit volume and improved price/mix. Original equipment unit volume
decreased 5 percent. Replacement tire shipments were up 11 percent.

First quarter segment operating income of $60 million was up 9 percent from a
year ago. Price/mix improvements of $45 million benefited segment operating
income and lower raw material costs added $4 million. Segment operating
income was negatively impacted by higher conversion costs of $33 million,
primarily due to cost inflation, and $11 million in unfavorable currency
translation.

The devaluation of the Venezuelan bolivar fuerte against the U.S. dollar in
February 2013 and weak economic conditions in that country negatively impacted
segment operating income by approximately $16 million in the first quarter of
2013.

Asia Pacific Tire


                         First Quarter
(in millions)            2013    2012
Tire Units               5.1     4.9
Sales                    $567    $577
Segment Operating Income $84     $67
Segment Operating Margin 14.8%   11.6%

Asia Pacific's first quarter sales decreased $10 million from last year to
$567 million. Sales were negatively impacted by $15 million in lower sales in
other tire-related businesses and $14 million in unfavorable foreign currency
translation. Original equipment unit volume was up 5 percent. Replacement
tire shipments were up 4 percent.

First quarter segment operating income of $84 million was up 25 percent from
last year and a first quarter record. Segment operating income was positively
impacted by $31 million in lower raw material costs. It was negatively
impacted by $7 million in lower price/mix, $3 million in unfavorable foreign
currency translation and the impact of inflation on wages and other costs.

Compared with the year-ago quarter, segment operating income improved by $4
million due to insurance recoveries for costs resulting from flood disruption
in Thailand.

Outlook

Goodyear is now forecasting its 2013 tire unit volumes to be essentially at
2012 levels as a result of weak industry conditions, especially in Europe.

For the full year of 2013 in North America, Goodyear now expects consumer
replacement to be at essentially 2012 levels. The company's full year 2013
outlook in other North American market segments is unchanged. It expects
consumer original equipment volumes to be up approximately 5 percent, while
commercial replacement and original equipment are both expected to remain at
about 2012 levels.

For the full year in Europe, Middle East and Africa, Goodyear now expects
consumer replacement to be at essentially 2012 levels. The company's full
year 2013 outlook in other Europe, Middle East and Africa market segments is
unchanged. It expects consumer original equipment volumes to be down
approximately 5 percent, commercial replacement to be up approximately 5
percent and commercial original equipment to be flat to up 5 percent.

Due to continued weakness in the European economy and to ensure the company's
long-term competitiveness in the region, Goodyear is implementing a
three-point plan to return its business to historical margin levels. In
addition to its announced exit from the farm tire business in the Europe,
Middle East and Africa region and closure of a manufacturing plant in France,
over the next three years Goodyear is focusing on 1) increasing its share in
targeted market segments, 2) growth in emerging markets and 3) additional
productivity improvements across the region totaling $75 million to $100
million.

2013 Financing Action

During the first quarter, Goodyear successfully issued $900 million in 6.5%
senior notes due 2021. The net proceeds were used to fully fund the company's
frozen U.S. pension plans. Following this, the company changed its target
asset allocation for these plans to a portfolio of fixed income securities
designed to offset the future impact of discount rate movements on the plans'
funded status.

Conference Call

Goodyear will hold an investor conference call at 9 a.m. today. Approximately
45 minutes prior to the commencement of the call, the company will post the
financial and other related information that will be presented on its investor
relations Web site: http://investor.goodyear.com.

Participating in the conference call will be Richard J. Kramer, chairman and
chief executive officer, and Darren R. Wells, executive vice president and
chief financial officer.

Investors, members of the media and other interested persons can access the
conference call on the Web site or via telephone by calling either (800)
895-1085 or (785) 424-1055 before 8:55 a.m. and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800) 283-4593 or
(402) 220-0872. The replay will also remain available on the Web site.

Goodyear is one of the world's largest tire companies. It employs about
69,000 people and manufactures its products in 52 facilities in 22 countries
around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg,
Luxembourg strive to develop state-of-the-art products and services that set
the technology and performance standard for the industry. For more
information about Goodyear and its products, go to www.goodyear.com/corporate.

Certain information contained in this press release may constitute
forward-looking statements for purposes of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. There are a variety of
factors, many of which are beyond our control, that affect our operations,
performance, business strategy and results and could cause our actual results
and experience to differ materially from the assumptions, expectations and
objectives expressed in any forward-looking statements. These factors include,
but are not limited to: our ability to implement successfully strategic
initiatives; pension plan funding obligations; actions and initiatives taken
by both current and potential competitors; increases in the prices paid for
raw materials and energy; a labor strike, work stoppage or other similar
event; deteriorating economic conditions or an inability to access capital
markets; work stoppages, financial difficulties or supply disruptions at our
suppliers or customers; the adequacy of our capital expenditures; our failure
to comply with a material covenant in our debt obligations; potential adverse
consequences of litigation involving the company; as well as the effects of
more general factors such as changes in general market, economic or political
conditions or in legislation, regulation or public policy. Additional factors
are discussed in our filings with the Securities and Exchange Commission,
including our annual report on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K. In addition, any forward-looking statements
represent our estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may elect to
update forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so, even if our estimates change.

(financial statements follow)

The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Operations (unaudited)


(In millions, except per share amounts)              Three Months Ended

                                                     March 31,
                                                     2013      2012
NET SALES                                            $4,853    $ 5,533
Cost of Goods Sold                                   3,940     4,607
Selling, Administrative and General Expense          645       662
Rationalizations                                     7         15
Interest Expense                                     85        101
Other Expense                                        126       92
Income before Income Taxes                           50        56
United States and Foreign Taxes                      19        48
Net Income                                           31        8
 Less: Minority Shareholders' Net Income (Loss) (2)       12
Goodyear Net Income (Loss)                           33        (4)
 Less: Preferred Stock Dividends                7         7
Goodyear Net Income (Loss) Available to              $   26  $  (11)
 Common Shareholders
Goodyear Net Income (Loss) Available to Common
Shareholders - Per Share of Common Stock
 Basic                                             $  0.10  $ (0.05)
 Weighted Average Shares Outstanding               245       244
 Diluted                                           $  0.10  $ (0.05)
 Weighted Average Shares Outstanding               248       244



The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Balance Sheets  (unaudited)


(In millions, except share data)                      March 31,   December 31,
                                                      2013        2012
Assets:
Current Assets:
 Cash and Cash Equivalents                           $   2,386 $   2,281
 Accounts Receivable, less Allowance - $96 ($99 in   3,021       2,563
2012)
 Inventories:
 Raw Materials                                    668         743
 Work in Process                                  179         169
 Finished Products                                2,321       2,338
                                                      3,168       3,250
 Prepaid Expenses and Other Current Assets           467         404
 Total Current Assets                             9,042       8,498
Goodwill                                              647         664
Intangible Assets                                     139         140
Deferred Income Taxes                                 195         186
Other Assets                                          534         529
Property, Plant and Equipment
                                                      6,901       6,956
 less Accumulated Depreciation - $9,004 ($8,991 in
2012)
 Total Assets                                      $  17,458  $  16,973
Liabilities:
Current Liabilities:
 Accounts Payable-Trade                              $   3,218 $   3,223
 Compensation and Benefits                           687         719
 Other Current Liabilities                           1,156       1,182
 Notes Payable and Overdrafts                        107         102
 Long Term Debt and Capital Leases due Within One    167         96
Year
 Total Current Liabilities                         5,335       5,322
Long Term Debt and Capital Leases                     6,307       4,888
Compensation and Benefits                             3,239       4,340
Deferred and Other Noncurrent Income Taxes            261         264
Other Long Term Liabilities                           1,014       1,000
 Total Liabilities                                 16,156      15,814
Commitments and Contingent Liabilities
Minority Shareholders' Equity                         515         534
Shareholders' Equity:
Goodyear Shareholders' Equity:
Preferred Stock, no par value:
Authorized, 50 million shares, Outstanding shares –
10 million (10 million in 2012),                      500         500

liquidation preference $50 per share
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares –
246 million (245 million in 2012)
                                                      246         245
after deducting 5 million treasury shares (6 million
in 2012)
Capital Surplus                                       2,818       2,815
Retained Earnings                                     1,396       1,370
Accumulated Other Comprehensive Loss                  (4,424)     (4,560)
 Goodyear Shareholders' Equity                      536         370
Minority Shareholders' Equity – Nonredeemable         251         255
 Total Shareholders' Equity                         787         625
 Total Liabilities and Shareholders' Equity         $  17,458  $  16,973



The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)
                                                   Three Months Ended
(In millions)
                                                   September 30,
                                                   March 31,
                                                   2013         2012
Cash Flows from Operating Activities:
Net Income                                         $     31 $      8
 Adjustments to reconcile net income to cash
flows from operating activities:
 Depreciation and amortization                 177          170
 Amortization and write-off of debt issuance   5            33
costs
 Net rationalization charges                   7            15
 Rationalization payments                      (24)         (31)
 Net (gains) losses on asset sales             2            (4)
 Pension contributions and direct payments     (908)        (114)
 Venezuela currency devaluation                115          --
 Customer prepayments and government grants    29           38
 Insurance proceeds                            17           25
 Changes in operating assets and liabilities, net
of asset acquisitions and dispositions:
 Accounts receivable                           (500)        (635)
 Inventories                                   31           (48)
 Accounts payable - trade                      134          (84)
 Compensation and benefits                     (23)         (19)
 Other current liabilities                     (4)          (20)
 Other assets and liabilities                  (26)         (88)
 Total Cash Flows from Operating Activities    (937)        (754)
Cash Flows from Investing Activities:
 Capital expenditures                             (271)        (276)
 Asset dispositions                               5            --
 Government grants received                       4            --
 Increase in restricted cash                      (23)         (21)
 Other transactions                               2            2
 Total Cash Flows from Investing Activities    (283)        (295)
Cash Flows from Financing Activities:
 Short term debt and overdrafts incurred          30           57
 Short term debt and overdrafts paid              (24)         (31)
 Long term debt incurred                          1,558        1,107
 Long term debt paid                              (78)         (783)
 Common stock issued                              2            --
 Preferred stock dividends paid                   (7)          (7)
 Transactions with minority interests in          (4)          (3)
subsidiaries
 Debt related costs and other transactions        (15)         (14)
 Total Cash Flows from Financing Activities    1,462        326
Effect of exchange rate changes on cash and cash   (137)        34
equivalents
Net Change in Cash and Cash Equivalents            105          (689)
Cash and Cash Equivalents at Beginning of the      2,281        2,772
Period
Cash and Cash Equivalents at End of the Period     $  2,386   $   2,083



Non-GAAP Financial Measures

This earnings release presents total segment operating income and free cash
flow from operations, on a historical basis, which are important financial
measures for the company but are not financial measures defined by U.S. GAAP.

Total segment operating income is the sum of the individual strategic business
units' segment operating income as determined in accordance with U.S. GAAP.
Management believes that total segment operating income is useful because it
represents the aggregate value of income created by the company's SBUs and
excludes items not directly related to the SBUs for performance evaluation
purposes.

Free cash flow from operations is the company's cash flow from operations as
determined in accordance with U.S. GAAP before pension contributions and
direct payments and rationalization payments, less capital expenditures.
Management believes that free cash flow from operations is useful because it
represents the cash generating capability of the company's ongoing operations,
after taking into consideration capital expenditures necessary to maintain its
business and pursue growth opportunities.

See the tables below for reconciliations of historical total segment operating
income and free cash flow from operations to the most directly comparable GAAP
measures. This earnings release also presents total segment operating income
on a forward-looking basis. The company is unable to reconcile
forward-looking total segment operating income without unreasonable efforts
because management cannot predict, with sufficient certainty, the various
elements necessary to provide such a reconciliation.



Total Segment Operating Income Reconciliation Table
                                                Three Months
                                                Ended
                                                March 31,
(In millions)                                   2013   2012
Segment Operating Income                       $302   $292
 Rationalizations                              (7)    (15)
 Interest expense                              (85)   (101)
 Other expense                                 (126)  (92)
 Asset write-offs and accelerated depreciation (5)    (2)
 Corporate incentive compensation plans        (10)   (7)
 Intercompany profit elimination               (3)    (10)
 Retained expenses of divested operations      (4)    (4)
 Other                                         (12)   (5)
Income before Income Taxes                      $50    $56



Free Cash Flow from Operations Reconciliation Table
                                             Three Months  Trailing Twelve

                                             Ended         Months Ended
(in millions)                                Mar. 31, 2013 Mar. 31, 2013
Net Income                                   $31           $260
 Depreciation and Amortization             177           694
 Working Capital (1)                       (335)         889
 Pension Expense                           76            305
 Other (2)                                 46            284
 Capital Expenditures                      (271)         (1,122)
Free Cash Flow from Operations (non-GAAP)    $(276)        $1,310
 Capital Expenditures                      271           1,122
 Pension Contributions and Direct Payments (908)         (1,478)
 Rationalization Payments                  (24)          (99)
Cash Flow from Operating Activities (GAAP)   $(937)        $855

Amounts are calculated from the consolidated Statements of Cash Flows except
for pension expense, which is the total defined benefit pension cost (before
curtailments, settlements and termination benefits) as reported in the Notes
to Consolidated Financial Statements.


(1) Working Capital represents total changes in accounts receivable,
inventories and accounts payable – trade.


(2) Other includes amortization and write-off of debt issuance costs, net
rationalization charges, net (gains) losses on asset sales, Venezuela currency
devaluation, customer prepayments and government grants, insurance proceeds,
compensation and benefits less the total defined benefit pension cost (before
curtailments, settlements and termination benefits) reported in the
pension-related note in the Notes to Consolidated Financial Statements, other
current liabilities, and other assets and liabilities.



First Quarter Significant Items (after tax and minority interest)

2013

  oNet foreign currency remeasurement loss resulting from the devaluation of
    the Venezuelan bolivar fuerte, $92 million (37 cents per share).
  oRationalizations, asset write-offs and accelerated depreciation charges,
    $9 million (4 cents per share).
  oNet loss on asset sales, $2 million (1 cent per share).
  oNet gain resulting from tax law changes, $12 million (5 cents per share).
  oNet insurance recoveries resulting from the impact of the 2011 Thailand
    flood, $6 million (2 cents per share).

2012

  oCharges resulting from the early redemption of senior notes, $86 million
    (35 cents per share).
  oRationalizations, asset write-offs and accelerated depreciation charges,
    $14 million (6 cents per share).
  oDiscrete tax charges, $3 million (1 cent per share).
  oNet insurance recoveries resulting from the impact of the 2011 Thailand
    flood, $5 million (2 cents per share).
  oNet gains on asset sales, $3 million (1 cent per share).





SOURCE The Goodyear Tire & Rubber Company

Website: http://www.goodyear.com
Contact: MEDIA CONTACT: Keith Price, 330-796-1863, or ANALYST CONTACT: Greg
Fritz, 330-796-6704