Goodyear Reports Higher Third Quarter Earnings

                Goodyear Reports Higher Third Quarter Earnings

- Third quarter segment operating income of $431 million, up 24%

- Year-over-year quarterly earnings improvement in all four businesses

- Record North America earnings of $161 million for third quarter

- Company now expects record 2013 segment operating income of more than $1.5
billion

- Company continues to target positive cash flow, excluding pension
pre-funding, through 2016

PR Newswire

AKRON, Ohio, Oct. 29, 2013

AKRON, Ohio, Oct. 29, 2013 /PRNewswire/ --The Goodyear Tire & Rubber Company
(NASDAQ: GT)today reported higher earnings for the third quarter of 2013.

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

"Our third quarter results, announced just weeks after our recent Investor
Day, demonstrate continued sustainable earnings growth and the type of
disciplined execution needed to deliver on our targets in 2013 and beyond,"
said Richard J. Kramer, chairman and chief executive officer.

"As the industry continues to recover, we see strong volume growth in the
segments we are targeting," he added. "While we continue to be disciplined in
our approach, we are seeing growth in unit volumes, including in our North
America business, driven by the Goodyear brand."

All four of Goodyear's regional businesses achieved higher operating income in
the quarter compared to the year-ago period, with North America posting record
third quarter operating income. Three businesses posted higher tire unit
volumes than last year.

"We now expect to see record segment operating income of more than $1.5
billion in 2013, and continue to target 10 percent to 15 percent annual growth
in segment operating income through 2016. As previously announced, we will
take the first steps in our capital allocation plan in the fourth quarter with
our reinstated quarterly dividend," Kramer said. Additionally, the company
continues to target positive cash flow, excluding pension pre-funding, through
2016.

Goodyear's third quarter 2013 sales were $5.0 billion, compared to $5.3
billion a year ago. Third quarter 2013 sales reflect $82 million in higher
tire unit volumes, more than offset by $178 million in lower sales in other
tire-related businesses, most notably a decrease in the price and volume of
third-party chemical sales; $89 million in lower price/mix, despite continued
favorable mix; and $77 million in unfavorable foreign currency translation.
Tire unit volumes totaled 42.6 million, up 2 percent from 2012.

The company reported segment operating income of $431 million in the third
quarter of 2013. This was up 24 percent from the year-ago quarter, reflecting
favorable price/mix net of raw materials of $87 million (excluding raw
material cost savings), lower unabsorbed overhead of $18 million due to higher
production levels and $14 million in higher tire unit volumes, partially
offset by $40 million in higher SAG expenses and $10 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 third quarter 2013 net income available to common shareholders was
$166 million (62 cents per share), a third quarter record and up 51 percent
from $110 million (41 cents per share) in the 2012 quarter. All per share
amounts are diluted.

The 2013 third quarter included total charges of $19 million (7 cents per
share) due to rationalizations, asset write-offs and accelerated depreciation
and gains of $2 million (1 cent per share) on asset sales. All amounts are
after taxes and minority interest.

The 2012 third quarter included total charges of $32 million (12 cents per
share) due to rationalizations, asset write-offs and accelerated depreciation;
$6 million (2 cents per share) due to pension settlements in the United
Kingdom; and $3 million (1 cent per share) due to discrete tax charges; and
gains of $5 million (2 cents per share) from asset sales; and $4 million (1
cent per share) in insurance recoveries related to flooding in Thailand. All
amounts are after taxes and minority interest.

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

Business Segment Results
North America
                          Third Quarter     Nine Months
(in millions)             2013     2012     2013      2012
Tire Units                15.8     15.6     45.4      46.8
Sales                     $ 2,186  $ 2,404  $  6,553 $ 7,352
Segment Operating Income 161      130      492       398
Segment Operating Margin  7.4%     5.4%     7.5%      5.4%

North America's third quarter 2013 sales decreased 9 percent from last year to
$2.2 billion. Sales reflect a $170 million decline in sales in other
tire-related businesses, most notably a decrease in the price and volume of
third-party chemical sales. The impact of increased tire unit volumes was more
than offset by lower price/mix. Original equipment unit volume was up 5
percent. Replacement tire shipments were flat.

Third quarter 2013 segment operating income of $161 million was a 24 percent
improvement over the prior year and a third quarter record. Segment operating
income was positively impacted by favorable price/mix net of raw materials of
$36 million, decreased conversion costs of $7 million and increased tire
volume of $2 million. This was partially offset by $15 million in higher SAG
expenses.

Europe, Middle East and Africa
                          Third Quarter     Nine Months
(in millions)             2013     2012     2013      2012
Tire Units                16.7     16.3     46.4      48.5
Sales                     $ 1,752  $ 1,748  $  4,936 $ 5,282
Segment Operating Income 115      105      197       214
Segment Operating Margin  6.6%     6.0%     4.0%      4.1%

Europe, Middle East and Africa's third quarter sales increased $4 million from
last year to $1.8 billion. Sales reflect a 3 percent increase in tire unit
volume and favorable foreign currency translation of $42 million, which was
partially offset by lower price/mix. Original equipment unit volume was up 11
percent. Replacement tire shipments were flat.

Third quarter 2013 segment operating income of $115 million was 10 percent
above the prior year. Higher tire unit volumes of $8 million, favorable
price/mix net of raw materials of $8 million and $7 million in favorable
foreign currency translation more than offset $8 million in higher SAG
expenses, the $3 million impact of higher conversion costs and $3 million in
lower earnings in other tire-related businesses.

Latin America
                         Third Quarter       Nine Months
(in millions)            2013     2012       2013    2012
Tire Units               4.5      4.7        13.5    13.3
Sales                    $  527  $   520  $ 1,571 $ 1,544
Segment Operating Income 89       49         231     162
Segment Operating Margin 16.9%    9.4%       14.7%   10.5%

Latin America's third quarter sales increased 1 percent from last year to $527
million. Sales reflect improved price/mix and higher sales in other
tire-related businesses of $11 million partially offset by $75 million in
unfavorable foreign currency translation and a 4 percent decrease in tire unit
volume. Original equipment unit volume was down 21 percent, reflecting the
company's selective fitment strategy. Replacement tire shipments were up 6
percent.

Third quarter segment operating income of $89 million was up 82 percent from a
year ago. Price/mix improvements of $79 million, including a favorable shift
from original equipment to replacement volumes, positively impacted segment
operating income and lower raw material costs added $8 million. Segment
operating income was negatively impacted by higher conversion costs of $27
million, $10 million in unfavorable currency translation, $10 million in
higher SAG expenses and $4 million in lower tire unit volume.

Asia Pacific
                         Third Quarter     Nine Months
(in millions)            2013     2012     2013      2012
Tire Units               5.6      5.2      16.3      15.4
Sales                    $  537  $  592  $  1,689 $ 1,769
Segment Operating Income 66       64       241       202
Segment Operating Margin 12.3%    10.8%    14.3%     11.4%

Asia Pacific's third quarter sales decreased $55 million from last year to
$537 million. Sales reflect an 8 percent increase in tire unit volume, offset
by reduced price/mix, $39 million in unfavorable foreign currency translation
and $12 million in lower sales in other tire-related businesses. Original
equipment unit volume was up 11 percent. Replacement tire shipments were up 5
percent.

Third quarter segment operating income of $66 million was up 3 percent from
last year. Segment operating income was positively impacted by favorable
price/mix net of raw materials of $15 million, lower factory start-up costs of
$13 million and $8 million in higher tire unit volumes, which more than offset
$7 million in higher SAG expenses, $6 million in unfavorable foreign currency
translation, $5 million in higher conversion costs and $4 million in lower
earnings from other tire-related businesses.

Year-to-Date Results

Goodyear's sales for the first nine months of 2013 were $14.8 billion, down 8
percent from the 2012 period. Sales reflect $487 million in lower sales in
other tire-related businesses, most notably third party chemical sales in
North America; $252 million in unfavorable foreign currency translation; $230
million in lower tire unit volumes; and $170 million in lower price/mix. Tire
unit volumes totaled 121.6 million, down 2 percent from 2012.

The company's nine-month segment operating income of $1.2 billion was up 19
percent from last year. Compared to the prior year, year-to-date segment
operating income reflects favorable price/mix net of raw materials of $338
million (excluding raw material cost savings), which more than offset $107
million in higher unabsorbed overhead costs resulting from lower production;
$39 million in unfavorable foreign currency translation; and $35 million in
lower tire volume.

Goodyear's year-to-date net income available to common shareholders of $372
million ($1.43 per share) is up from $183 million (73 cents per share) in
2012's first nine months. All per share amounts are diluted.

Outlook

For the full year of 2013 in North America, Goodyear's industry outlook is
unchanged. It expects consumer replacement as well as commercial replacement
and commercial original equipment volumes to be at essentially 2012 levels. It
expects consumer original equipment volumes to be up approximately 5 percent.

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

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) 283-4641 or
(402) 220-0851. 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. GT-FN

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)
                             Three Months            Nine Months

                             Ended                   Ended
                             September 30,           September 30,
(In millions, except per     2013        2012        2013         2012
share amounts)
NET SALES                    $  5,002  $  5,264  $14,749      $15,947
Cost of Goods Sold           3,946       4,315       11,732       13,063
Selling, Administrative and  686         652         2,022        2,011
General Expense
Rationalizations             21          26          41           67
Interest Expense             100         86          287          270
Other (Income) Expense       --          (1)         112          128
Income before Income Taxes   249         186         555          408
United States and Foreign    54          53          136          164
Taxes
Net Income                   195         133         419          244
 Less: Minority         22          16          25           39
Shareholders' Net Income
Goodyear Net Income          173         117         394          205
Less: Preferred Stock      7           7           22           22
Dividends
Goodyear Net Income
Available to                 $  166     $  110     $  372      $  183
 Common Shareholders
Goodyear Net Income
Available to
 Common Shareholders- Per
Share of
 Common Stock
 Basic                     $   0.67 $   0.45 $    1.51 $   0.75
 Weighted Average Shares   246         245         246          245
Outstanding
 Diluted                   $   0.62 $   0.41 $    1.43 $   0.73
 Weighted Average Shares   278         281         276          281
Outstanding
Cash Dividends Declared Per  $   0.05 --          $    0.05 --
Common Share



The Goodyear Tire & Rubber Company and Subsidiaries
Consolidated Balance Sheets (unaudited)
(In millions, except share data)                    September 30, December 31,
                                                    2013          2012
Assets:
Current Assets:
 Cash and Cash Equivalents                         $   2,500   $   2,281
 Accounts Receivable, less Allowance - $106 ($99   3,254         2,563
in 2012)
 Inventories:
 Raw Materials                                  616           743
 Work in Process                                172           169
 Finished Products                              2,156         2,338
                                                    2,944         3,250
 Prepaid Expenses and Other Current Assets         371           404
 Total Current Assets                           9,069         8,498
Goodwill                                            660           664
Intangible Assets                                   138           140
Deferred Income Taxes                               190           186
Other Assets                                        550           529
Property, Plant and Equipment
                                                    7,065         6,956
 less Accumulated Depreciation - $9,151 ($8,991 in
2012)
 Total Assets                                    $  17,672    $  16,973
Liabilities:
Current Liabilities:
 Accounts Payable-Trade                            $   3,084   $   3,223
 Compensation and Benefits                         794           719
 Other Current Liabilities                         1,130         1,182
 Notes Payable and Overdrafts                      44            102
 Long Term Debt and Capital Leases due Within One  132           96
Year
 Total Current Liabilities                       5,184         5,322
Long Term Debt and Capital Leases                   6,366         4,888
Compensation and Benefits                           3,111         4,340
Deferred and Other Noncurrent Income Taxes          273           264
Other Long Term Liabilities                         995           1,000
 Total Liabilities                               15,929        15,814
Commitments and Contingent Liabilities
Minority Shareholders' Equity                       540           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
– 247 million (245 million in 2012) 
                                                    247           245
after deducting 4 million treasury shares (6
million in 2012)
Capital Surplus                                     2,838         2,815
Retained Earnings                                   1,730         1,370
Accumulated Other Comprehensive Loss                (4,363)       (4,560)
 Goodyear Shareholders' Equity                    952           370
Minority Shareholders' Equity – Nonredeemable       251           255
 Total Shareholders' Equity                       1,203         625
 Total Liabilities and Shareholders' Equity       $  17,672    $  16,973



The Goodyear Tire & Rubber Company and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In millions)                                        Nine Months Ended
                                                     September 30,
                                                     2013         2012
Cash Flows from Operating Activities:
Net Income                                           $    419 $    244
 Adjustments to reconcile net income to cash flows
from operating activities:
 Depreciation and amortization                   539          513
 Amortization and write-off of debt issuance     13           64
costs
 Net rationalization charges                     41           67
 Rationalization payments                        (60)         (66)
 Net (gains) losses on asset sales               (6)          (22)
 Pension contributions and direct payments       (1,072)      (490)
 Venezuela currency devaluation                  115          --
 Customer prepayments and government grants      32           94
 Insurance proceeds                              17           39
 Changes in operating assets and liabilities, net
of asset acquisitions and dispositions:
 Accounts receivable                             (728)        (729)
 Inventories                                     249          257
 Accounts payable - trade                        (26)         (432)
 Compensation and benefits                       215          169
 Other current liabilities                       (12)         70
 Other assets and liabilities                    (34)         (107)
 Total Cash Flows from Operating Activities      (298)        (329)
Cash Flows from Investing Activities:
 Capital expenditures                               (734)        (788)
 Asset dispositions                                 8            14
 Government grants received                         6            2
 Decrease (increase) in restricted cash             3            (17)
 Short term securities acquired                     (89)         (25)
 Short term securities redeemed                     81           10
 Other transactions                                 --           4
 Total Cash Flows from Investing Activities      (725)        (800)
Cash Flows from Financing Activities:
 Short term debt and overdrafts incurred            30           74
 Short term debt and overdrafts paid                (89)         (89)
 Long term debt incurred                            2,152        3,042
 Long term debt paid                                (660)        (2,322)
 Common stock issued                                15           1
 Preferred stock dividends paid                     (22)         (22)
 Transactions with minority interests in            (10)         (23)
subsidiaries
 Debt related costs and other transactions          (16)         (63)
 Total Cash Flows from Financing Activities      1,400        598
Effect of exchange rate changes on cash and cash     (158)        16
equivalents
Net Change in Cash and Cash Equivalents              219          (515)
Cash and Cash Equivalents at Beginning of the Period 2,281        2,772
Cash and Cash Equivalents at End of the Period       $  2,500    $   2,257



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  Nine Months
                                                   Ended         Ended
                                                   September 30, September 30,
(In millions)                                      2013    2012  2013     2012
Segment Operating Income                          $431    $348  $1,161   $976
 Rationalizations                                 21      26    41       67
 Interest expense                                 100     86    287      270
 Other (income) expense                           --      (1)   112      128
 Asset write-offs and accelerated                 5       13    15       19
depreciation
 Corporate incentive compensation plans           34      25    79       47
 Intercompany profit elimination                  5       (12)  5        (11)
 Retained expenses of divested operations         7       3     17       12
 Other                                            10      22    50       36
Income before Income Taxes                         $249    $186  $555     $408



Free Cash Flow from Operations Reconciliation Table
                                        Three Months       Trailing Twelve
                                        Ended              Months Ended
(in millions)                           Sept. 30, 2013     Sept. 30, 2013
Net Income                              $195               $412
 Depreciation and Amortization        182                713
 Working Capital (1)                  (284)              856
 Pension Expense                      65                 291
 Other (2)                            102                163
 Capital Expenditures                 (241)              (1,073)
Free Cash Flow from Operations          $19                $1,362
(non-GAAP)
 Capital Expenditures                 241                1,073
 Pension Contributions and Direct     (79)               (1,266)
Payments
 Rationalization Payments             (17)               (100)
Cash Flow from Operating Activities     $164               $1,069
(GAAP)
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.

Third Quarter Significant Items (after tax and minority interest)

2013

  oRationalizations, asset write-offs and accelerated depreciation, $19
    million (7 cents per share)
  oGains from asset sales, $2 million (1 cent per share)

2012

  oRationalizations, asset write-offs and accelerated depreciation, $32
    million (12 cents per share)
  oPension settlements in the United Kingdom, $6 million (2 cents per share)
  oDiscrete tax charges, $3 million (1 cent per share)
  oGains from asset sales, $5 million (2 cents per share)
  oInsurance recoveries related to flooding in Thailand, $4 million (1 cent
    per share)

SOURCE The Goodyear Tire & Rubber Company

Website: http://www.goodyear.com
Contact: MEDIA CONTACT: Keith Price, 330-796-1863; ANALYST CONTACT: Tom
Kaczynski, 330-796-6704
 
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