Goodyear posts stronger results in Q2

ERJ staff report (DS)

Akron, Ohio -- The Goodyear Tire & Rubber Company today reported improved tyre 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 tyre unit volume added $304 million in sales, due to improved global demand. Sales were also positively affected by improved sales in other tyre-related businesses, primarily third-party chemical sales in North America, and by improved price/mix. 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 year-ago quarter. Compared to last year, second quarter segment operating income reflects higher global demand, strong price/mix performance and cost reduction actions.

“Raw material costs remain a challenge and we continue to see an uncertain economy, but we remain focused on the proven strategies that have enabled us to address these headwinds over time,” said Richard Kramer, president and chief executive officer.

North American Tire's second quarter 2010 sales increased 21 percent from last year to

$2 billion, reflecting a 13 percent increase in tyre 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 tyre 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 due to a 6 percent increase in tyre unit volume and strong price/mix performance. Original equipment unit volume increased 27 percent. Replacement tyre shipments were up 1 percent.

Latin American Tire's second quarter sales increased 21 percent from last year to $529 million primarily due to a 13 percent increase in tyre unit volume and strong price/mix performance. Original equipment unit volume increased 16 percent, resulting from higher vehicle production. Replacement tyre shipments were up 11 percent.

Asia Pacific Tire's second quarter sales increased 16 percent from last year to $495 million due to a 9 percent increase in tyre 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 tyre shipments were up

2 percent.

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Press release from Goodyear