Goodyear bucks trend with higher sales, profits in Q2
ERJ staff report (DS)
Akron, Ohio -- Goodyear has reported first half net earnings of $222 million for 2008, compared with a loss of $118 million a year ago. Revenues in the six months were $10 181 million, up from $9420 million a year ago.
Although the number of units sold declined in all Goodyear's regional business units except Asia/Pacific, revenue per tyre increased by 9 percent in the second quarter, compared with the same three months of 2007.
Regionally, North America contributed less than ever, while overseas businesses all generated more sales. The Asia Pacific unit generated record sales for a quarter.
In the six months, Goodyear's North American unit sold 36.1 million tyres, for a total of $4127 million. This compares with 40.1 million units and $4293 million in revenues for the first half of 2007. Goodyear said, "ire volume declined by 2.5 million units reflecting significantly weaker demand compared to last year, particularly in the consumer original equipment market and in low-value-added segments of the consumer replacement market. " Goodyear said it improved the product mix, which in turn helped the revenue per tyre.
The European unit also recorded higher revenues from fewer tyre sales. In Europe Goodyear sold 38.8 million tyres in the first half of 2008 compared with 39.9 million a year earlier. Tyre units sold in Europe exceeded North America sales in both the six-month and the three-month period. Revenues in Europe stood at $3974 million for the first half, up significantly from $3447 million a year earlier. Goodyear said this was due largely to the strength of the euro against the dollar, but also by a better product mix.
Sales performance in Latin America was largely unchanged, although profits increased 14 percent from 2007 due to improved pricing and product mix of $43 million that more than offset $17 million in higher raw material costs.
I Asia Pacific both unit sales and revenues jumped strongly, leading to higher profits and margins. Asia Pacific Tire's quarterly sales exceeded $500 million for the first time, increasing 20 percent compared to the 2007 second quarter primarily due to improved pricing and product mix, higher volume and the favorable impact of foreign currency translation. The unit sold 10.3 million tyres in the first half, up from 9.3 million a year ago. Revenues amounted to $978 million, up from just $812 million a year ago.
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Press release from Goodyear
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