3Q Sales in the Americas Are Up, Says Goodyear
Tire units in Goodyear Tire & Rubber Co.'s Americas Business Unit totaled 17.8 million units in the third quarter ended Sept. 30, 2018. That total is up 4% compared to the same period last year.
Sales also were up for the quarter, from $2 billion to $2.1 billion. Goodyear says the 3.2% increase was primarily related to the following:
* increased volume,
* higher third-party chemical sales, and
* increases in price/mix.
These increases were partially offset by unfavorable foreign currency translation.
Replacement tire shipments were up 5%, led by 11% growth in the U.S. consumer business, which more than offset a 6% decline in Brazil. U.S. sell-out was up 5%, "the third straight quarter of solid growth," said the company. Original equipment unit volume was relatively flat compared to the prior year’s third quarter.
Third quarter 2018 segment operating income of $194 million was nearly flat compared to the prior year's operating income of $196 million. "The modest decline was driven by the impact of reduced price/mix, higher conversion costs, unfavorable foreign currency translation and increased raw material costs, substantially offset by a favorable indirect tax settlement in Brazil and higher tire volumes."
(Goodyear combined its former North America and Latin America strategic business units into one Americas strategic business unit on Jan. 1, 2016.)
In the Europe, Middle East and Africa Business Unit, 3Q 2018 sales decreased approximately 2% from last year to $1.3 billion. Tire unit volumes increased 3%. Segment operating income of $111 million was up 23% versus 3Q 2017.
In the Asia Pacific Business unit, third-quarter 2018 sales decreased 7% from last year to $531 million. Tire unit volumes were down 4%. Segment operating income of $57 million was down 30% versus 3Q 2017.
Overall, Goodyear posted net income of $351 million on net sales of $3.928 billion for the third quarter ended Sept. 30, 2018. For more information on Goodyear's financial results, check out this link: