Standard&Poor's said today that its credit ratings and outlook on Goodyear Tire&Rubber Co. (BB+/Stable/B) were unaffected by the company's announcement that net income reached nearly $29 million for the second quarter of 2002, its most profitable quarter in two years, despite a 3% decline in sales from the second quarter in 2001. Operating margin for the second quarter of 2002 improved to 3.8% from 2.9% in the second quarter of 2001 due to cost containment programs and lower raw material costs. Although six of seven business segments reported improved operating income, the North American tire segment (about 47% of sales) reported a 20% decline due to lower replacement market volumes, unfavorable product mix, reduced facility use,
