“Industry fundamentals remain favourable across many of our key markets and demand for our premium, high-value-added tires is strong,” added an upbeat Kramer.
At $1.3 billion, second quarter sales at Goodyear’s EMEA business came in about level with the prior-year amount.
A 4 percent increase in sales volume in the EMEA region was offset by unfavourable price/mix and foreign currency translation, the company said.
In the region, replacement tire shipments were up 3 percent and OE unit volume was up 8 percent.
But second quarter 2016 segment operating income of $148 million was 37 percent above the prior year on higher volume and lower selling, administrative and general expenses, Goodyear said.
At Goodyear’s Americas business unit, segment operating income in the quarter fell 19 percent to $291 million, due to the deconsolidation of the Venezuela unit, higher conversion cost, an out-of-period adjustment mostly linked to 2012 and related to the elimination of intra-company profit, as well as lower volume.
Sales in the unit fell 13.5 percent to $2.1 billion, reflecting a 6-percent drop in tire units sold, due mainly to the sale of the former Goodyear Dunlop Tires North America Ltd business and the deconsolidation of Venezuela. Replacement and OE tire shipments were down 2 and 15 percent, respectively.
First-half operating income in the Americas unit was down 9.1 percent to $551 million, while sales fell 13.2 percent to $4.0 billion, reflecting a negative currency translation of $225 million and the deconsolidation of Venezuela.
In Asia Pacific, Goodyear’s second-quarter sales increased 8 percent year-on-year to $528 million. Sales reflect a 21 percent increase in tire unit volume, primarily due to growth in Japan and China. This improvement was partially offset by negative currency translations. Replacement tire shipments were up 38 percent. Original equipment unit volume was up 1 percent.
Second quarter 2016 segment operating income of $92 million was up 10 percent in Asia Pacific and a record, driven by higher volume, Goodyear said.