AKRON (July 29, 2010)—Goodyear has reported improved tire unit volumes, higher sales and a net profit in the second quarter of 2010.
Goodyear's sales for the three months to June 2010 were $4.5 billion, up 15 percent from the 2009 quarter.
A 10 percent increase in tire unit volume added $304 million in sales as a result of improved global demand. Sales were also positively affected by improved sales in other tire-related businesses, primarily third-party chemical sales in North America, and by improved price/mix, according to Goodyear. Unfavorable foreign currency translation reduced sales by $37 million.
The company had segment operating income of $219 million in the second quarter of 2010, up from $24 million in the second quarter of fiscal 2009. Compared to last year, second quarter segment operating income reflects higher global demand, strong price/mix performance and cost reduction actions.
President and CEO Richard Kramer said raw material costs remain a challenge and Goodyear continues to see an uncertain economy, but will remain focused on the “proven strategies that have enabled us to address these headwinds over time.”
North American Tire's second quarter 2010 sales increased 21 percent from last year to $2 billion, reflecting a 13 percent increase in tire unit volume, improved price/mix and branded share gains in the consumer replacement business. Original equipment unit volume increased 69 percent, primarily in the consumer business. Replacement tire shipments were up 2 percent from last year.
Europe, Middle East and Africa Tire's second quarter sales increased 5 percent from last year to $1.5 billion primarily because of a 6 percent increase in tire unit volume and strong price/mix performance. Original equipment unit volume increased 27 percent. Replacement tire shipments were up 1 percent.
Latin American Tire's second quarter sales increased 21 percent from last year to $529 million primarily as a result of a 13 percent increase in tire unit volume and strong price/mix performance. Original equipment unit volume increased 16 percent, resulting from higher vehicle production, the company said. Replacement tire shipments were up 11 percent.
Asia Pacific Tire's second quarter sales increased 16 percent from last year to $495 million because of a 9 percent increase in tire unit volume with strong replacement market volumes in China and India and favorable foreign currency translation. Original equipment unit volume increased 22 percent, resulting from higher vehicle production. Replacement tire shipments were up 2 percent.