U.S./Canada Lead the Way for Goodyear in 3Q
Goodyear Tire & Rubber Co. enjoyed record segment operating income for the third quarter of 2015. The North American Business Unit is largely responsible for that result.
In the North American segment (defined as the United States and Canada), Goodyear posted record 3Q segment operation income of $323 million, up 54% versus the same period last year. The improvement was primarily driven by favorable price/mix net of raw materials, as well as cost reduction actions.
The only other segment showing a positive 3Q result was Latin America, which increased from $49 million to $50 million (up 2%).
The Europe, Middle East and Africa Business Unit was down 14.9% in 3Q operating income, from $181 million last year to $154 million this year. The Asia Pacific Business Unit was down 10%, from $80 million to $72 million.
“Our strong momentum in North America continues," say Richard Kramer, chairman and CEO. "The business grew its segment operating margin to more than 16% and achieved a 54% year-over-year increase in earnings driven by strong demand for our high-value-added products.”
The North American segment’s third-quarter 2015 sales decreased 4% from last year. A 3% increase in tire unit volume was more than offset by a decrease in other tire-related sales, principally third-party chemical sales. Original equipment unit volume was up 8%, while replacement tire volume was up 1%.
Here are Goodyear's results its North American Business Unit through the first nine months of 2015 (with 2014 results in parentheses).
Tire units: 46.2 million (45.1 million)
Sales: $5.8 billion ($6 billion).
Segment operating income: $842 million ($574 million).
Overall, Goodyear posted net income of $271 millon on net sales of nearly $4.2 billion for its third quarter ending Sept. 30, 2015. That compares to income of $161 million on sales of more than $4.6 billion for the same period last year.
For more information about Goodyear's financials, please see Goodyear Posts Pretty Positive Numbers for 3Q.