AKRON—Goodyear said higher raw material costs were among the factors that contributed to a 32.4 percent drop in operating income for both the quarter that ended June 30 and for the first six months of 2019.
The Akron-based tire maker said lower volume, weaker results from other tire-related businesses and adverse currency, partially offset by favorable price/mix, also contributed to the drop in operating income in the quarter, from $324 million a year ago to $219 million in 2018.
Operating income in the first half decreased from $605 million in 2018 to $409 million in 2019.
Goodyear also reported a net loss of $7 million for the first six months of 2019, compared to net income of $232 million in the same period of 2018. That was due, Goodyear said, to several significant items, including $107 million in rationalization charges, related to the previously announced plan to modernize two of tire manufacturing facilities in Germany.
First half 2019 adjusted net income was $103 million, compared to $272 million in 2018.
Net income for the quarter was $54 million, compared to $157 million in the corresponding quarter of 2018.
According to Goodyear, unfavorable currency translation, lower volume and reduced sales from other tire-related businesses were factors in a 5 percent drop in net sales during the quarter, from $3.8 billion in 2018 to $3.6 billion during the most recent quarter.
Tire unit volumes were 37.4 million, a decrease of 4 percent from 2018. Replacement tire shipments were flat, while OE unit volume dropped 11 percent, reflecting lower global vehicle production and strategic fitment choices.