AKRON—Goodyear's operating income fell 32 and 21.3 percent for the quarter and six months ended June 30 due to the negative effects of higher raw materials costs and lower unit volumes.
Sales were down in both periods as well, with business in Europe suffering the most due to "increased competition and lower summer tire industry demand."
Richard Kramer, Goodyear's chairman and CEO, said the results "reflect the impact of volatile raw material costs and an increasingly challenging competitive environment, particularly in the U.S. and Europe."
Kramer called the first half a "highly unusual" environment, with weakening OE and replacement demand despite strong underlying industry fundamentals, such as favorable trends in miles driven, gasoline prices and unemployment.
In light of the first half results and the "challenging global marketplace," Goodyear has lowered its segment operating income expectations for the remainder of 2017.
"Despite the near-term challenges, I am no less optimistic about our ability to drive our strategic priorities against the favorable industry megatrends," Kramer said.
Segment operating income fell to $361 million in the quarter and to $746 million in the first half, whiles sales were off 5 percent in the quarter to $3.69 billion and 2.4 percent to $7.39 billion in the half. Unit volume fell 10 percent to 37.4 million units worldwide.