Goodyear's financial results are 'strong' again
Goodyear Tire & Rubber Co. posted net income of $192 million on net sales of nearly $4.2 billion for its second quarter ended June 30, 2015. That compares to income of $213 million on sales of almost $4.7 billion for the same period last year.
The company's income-to-sales ratio was 4.6%.
Segment operating income was a record for any quarter. It rose 21%, from $460 million in 2Q 2014 to $556 million. The increase was driven by favorable price/mix net of raw materials and cost reduction actions. (These were partially offset by inflation and unfavorable foreign currency translation.)
“We delivered outstanding segment operating income growth and achieved a segment operating margin of more than 13%, despite significant foreign currency and global economic headwinds,” says Richard Kramer, chairman and CEO.
“North America continued to lead the way with a 54% increase in segment operating income and a 16% segment operating margin driven by strong demand for our products. Additionally, three of our four businesses posted segment operating margins in excess of 10%.
"Our strong second quarter results -- even amid ongoing global challenges -- reflect the strength of our strategy and of our value proposition.”
Tire unit volume for the quarter totaled 40.8 million, up 1% compared to 2Q '14. Here is the breakdown:
* original equipment tire shipments were up 4%;
* replacement shipments were down 1%.
Second-quarter results were also impacted by $79 million of U.S. tax expense following the release of the company’s U.S. tax valuation allowance in the fourth quarter of 2014. Due to tax credits and prior tax-loss carryforwards, the company does not expect to pay significant cash income taxes in the United States for about five years.
Goodyear recorded net income of $416 million on net sales $8.2 billion for the first six months of fiscal 2015. That compares to income of $155 million on sales of $9.1 billion for the same six-month period last year.
The company’s first-half segment operating income of $947 million was up 14% from last year. Tire unit volumes totaled 81.6 million for the first half, up 1% from 2014.
For more information on Goodyear's financial health, visit these links: