AKRON (July 26) — Goodyear said its net income for the second quarter rose to $56 million from $2 million in 2006 on record sales, despite a 2.7-percent falloff in North American Tire sales.
Goodyear's net sales rose 3.9 percent to $4.92 billion from a year ago. The tire maker attributed the gain to the product introductions and record performances of its three emerging markets tire businesses. Eastern Europe, Middle East and Africa Tire sales increased 13.5 percent, Latin American Tire sales improved 18.3 percent and Asia Pacific Tire sales grew 13.5 percent.
The company also said that for the second quarter the aftereffects of last year's United Steelworkers strike cost it about $5 million in earnings.
Sales by the firm's North American Tire unit fell to $2.28 billion, and volume slipped 10.7-percent to 20.8 million units from 23.3 million units a year ago. The company said the lower volume resulted from its decision in 2006 to abandon certain segments of the private label tire business, and also from weak commercial and original equipment markets.
These declines were partially offset by market share gains in higher-value branded tires, improved pricing and mix and higher sales in chemical and other tire-related businesses, Goodyear said.
For the first half of the year, Goodyear's net sales rose 2.4 percent to $9.42 billion. The company reported a loss for the period of $118 million vs. profits of $76 million the previous year.
North American Tire sales fell 6.2 percent to $4.29 billion as tire unit volume slipped 14.5 percent in the first half.