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
Gary Sass is joining Point S North America following time at Kumho, Continental and Goodyear.
News

Point S Names Network Operations Manager for North America

Gary Sass has joined Point S North America as its first network operations manager. Sass will be responsibile for continuing the synergy between the Point S entities in the U.S. and Canada, and working to expand the company's network, partnerships and brand in North America.

News

Wegmann To Open New West Coast Distribution Center

Wegmann automotive USA Inc. is moving into a larger distribution facility to serve its West Coast customers. The company says the location in Phoenix will help improve fill rates and delivery services.

Kenda tires will run exclusively on Vore 2016 Roush Mustangs, Ford F-150 Raptors and Vore challenge racing trucks. 
News

Kenda Sponsors Off-Road Driving Experience

American Kenda Rubber Industrial Co. Ltd.’s Kenda brand is the new tire sponsor of Vore Adrenaline Compound, an off-road driving experience based in Las Vegas, Nev.

Article

Dealers Hope New President Will be Good for Business

Each month we ask members of our National Advisory Council (NAC) a question or questions on a current hot topic. Recently we asked, “What effect do you believe Donald Trump will have on your business as president?” Here are some of their responses.

Service Line says its Renegade Model TMB4000 manual parts washer is a cost-effective way to wash parts without solvents.
Product

Service Line Has Manual Parts Washer

Service Line Inc.’s Renegade TMB 4000 manual parts washer for general repair cleaning is designed to be a practical alternative to washing parts with solvents.

Bosch says the Robinair AC1234-6 machine has a liquid refrigerant flushing function that flushes A/C systems or individual components using liquid refrigerant instead of harsh chemicals.
Product

Robinair Offers 1234YF Recover, Recycle, Recharge Machine

The Robinair AC1234-6 was the first commercially available fully automatic R1234YF machine to meet the SAE’s requirement for recovering, recycling and recharging vehicle A/C systems with the new refrigerant, according to Bosch Automotive Service Solutions.

Tire Factory moved its dealer meeting out of Oregon and planned new activities for dealers, including a visit to Octane Raceway and a timed pit crew challenge. Tiffany Fox prepares to lower the jack once her teammates from Point S J&J Tire & Auto Service in Helena, Mont., finish their tire installations.
Article

Point S Rebranding Exceeds Expectations

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

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!