Retail

Goodyear 2Q: Higher income and record earnings

Posted on July 30, 2014

Goodyear Tire & Rubber Co. posted net income of $213 million on net sales of $4.7 billion for the second quarter ended June 30, 2014. That compares to income of $181 million on sales of nearly $4.9 billion for the same period last year.

Segment operating income was up 7%, from $428 million to $460 million, a second-quarter record. The company’s income to sales ratio was 4.5%.

Goodyear said the increase in segment operating income was driven by significant improvement in Europe, Middle East and Africa, which offset softness in emerging markets.

Tire unit volumes totaled 40.6 million for the second quarter of 2014, up 3% from 2013. Replacement tire shipments were up 6%. Original equipment unit volume was down 4%, primarily in Latin America

The company reported North America second-quarter earnings of $208 million, a record for any quarter. Goodyear said its North American business continued to perform at record levels with segment operating margin of more than 10%.

“We delivered record second quarter results, driven by strong consumer replacement volumes in all of our regions where our new products are in demand,” says Richard Kramer, chairman and chief executive officer.

“Our performance in the first half, which was achieved through a balance of volume growth and cost reduction, gives us confidence that our strategy is working and we are on track to attain our 2014-2016 financial targets.”

North America segment, 2Q 2014

Tire unit sales: 15.3 million (up 3.4%)

Sales: $2.0 billion (down 7%)

Operating income: $208 million (up 2%)

Replacement tire shipments were up 6%. Original equipment unit volume was down 4%. Sales reflect a 3% increase in tire unit volume, offset by lower third-party chemical sales and lower price/mix, according to Goodyear.

Through the first six months, Goodyear recorded net income of $155 million (down 24.7%) on net sales of $9.1 billion (down 6%). The company said Europe, Middle East and Africa second quarter earnings more than doubled to $117 million. Second-quarter tire volumes increase 3%, in line with the full-year outlook. Goodyear reaffirmed its 2014-2016 financial targets. 

Related Topics: Goodyear financials, Richard Kramer

Comments ( 0 )
More Stories
News

Denso Expands TPMS Sensor Coverage

Denso Products and Services Americas Inc. has added 14 part numbers to its selection of First Time Fit tire pressure monitoring system (TPMS) sensors. The new part numbers add coverage for more than 10 million European and Korean vehicles.

News

Goodyear Declares 21st Straight Dividend

Directors of Goodyear Tire & Rubber Co. have declared a quarterly dividend of 10 cents per share of common stock. The dividend is payable March 1, 2017, to shareholders of record on Feb. 1, 2017.

News

Hotwire Will Return After MLK Holiday

Due to the Martin Luther King Jr. holiday, Modern Tire Dealer will not publish Hotwire on Monday. Look for the next edition on Tuesday, Jan. 17.

In 2016 Toyo expanded its production capacity at its North American plant in Georgia. In 2017 the company will add to its R&D center there.
News

Toyo Expands North American R&D Center

Toyo Tire & Rubber Co. Ltd. is expanding its research and development space in White, Ga., to boost its North American business. The work is scheduled to be complete in 2017.

News

Hercules Strengthens Warranty Program in 3 Ways

Hercules Tire & Rubber Co. beefed up its warranty program in three ways on Jan. 1, 2017. Road hazard coverage for mud tires and commercial traction tires is just one part of the expanded program.

News

ASE Names New Leadership for 2017

The National Institute for Automotive Service Excellence (ASE) has named four officers to its board of directors and elected two people to its board of governors.

Michelin says the new Pilot Sport 4S UHP tire solves the pleasure and safety equation for performance enthusiasts, offering unprecedented driving pleasure, exceptional steering precision and tremendous directional stability, while also providing maximum grip on wet or dry roads.
News

Michelin Adds New UHP Tire to Pilot Line

Michelin Group’s new Pilot Sport 4S has a Y speed rating (186+ mph) and offers a 30,000-mile warranty. The product line initially includes 35 sizes, in widths ranging from 225mm to 345mm, aspect ratios from 30 to 45, and rim diameters from 18 to 20 inches.

News

Andreoli Picks Its First General Manager

Russ Carter, former general manager of Griffin Brothers Auto Centers LLC, has joined Andreoli & Associates Inc. He will serve as general manager and take on the duties previously handled by the software company's president Mike Andreoli.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!