Goodyear reports second-quarter profit drop
Goodyear’s second quarter 2017 sales were $3.7 billion (Bt122.8 billion), down from $3.9 billion a year ago, with the decrease largely attributable to lower tyre unit volume, partially offset by improved price/mix.
Tyre unit volumes totalled 37.4 million, down 10 per cent from 2016, primarily in Europe, Middle East and Africa and the Americas. Replacement tyre shipments were down 11 per cent, and original equipment unit volume was down 8 per cent.
Its sales for the first six months of 2017 were $7.4 billion, down 2 per cent from the 2016 period, reflecting lower tyre unit volume, partially offset by improved price/mix.
Tyre unit volumes totalled 77.4 million, down 7 per cent from 2016. Replacement tyre shipments were down 6 per cent, reflecting increased competition. Original equipment unit volume was down 8 per cent, driven by lower car production.
“Our second-quarter results reflect the impact of volatile raw material costs and an increasingly challenging competitive environment, particularly in the United States and Europe,” Richard J. Kramer, chairman and chief executive officer said in a press release on Monday.
“In addition to higher raw material costs, we have seen a weakening in OE (original equiopment) and consumer replacement demand across many of our key markets during the first half, despite strong underlying industry fundamentals.
“The combination of these factors has led to a highly unusual first half environment, particularly given the favorable trends in miles driven, gasoline prices and unemployment that are generally supportive of our industry,” Kramer added.
