Goodyear: Results are mixed in North America
Goodyear Tire & Rubber Co.'s North American Tire business unit recorded sales of $2.3 billion for the second quarter ended June 30, 2006. Sales were up 2% compared to 2Q 2005, a second-quarter Goodyear record.
The increase was driven by improved pricing and product mix, and higher sales in chemical and other tire-related businesses, according to the company. Sales were offset by decreased volume in the lower-value segment of the consumer replacement market.
Second-quarter segment operating income of $6 million decreased compared to the 2005 period "due to lower volume, including costs related to reduced production, and increases in energy and labor costs." Price and product mix improvements of $91 million were not enough to offset raw material cost increases of approximately $98 million.
Tire Units totaled 23.3, down nearly 8% compared to the second quarter of 2005.
Divestitures in 2005 reduced second-quarter 2006 sales by approximately $72 million; unfavorably impacted segment operating income by $14 million; and reduced volume by 300,000 units.
For the first six months of 2006, Goodyear posted operating income of 49 million, a decrease of 25.7% compared to the first half of 2005. Sales were up 3.2%, from $4.43 billion to $4.58 billion. Unit sales were down 7.3%, from 50.6 million tires to 46.9 million tires.