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Goodyear’s net income nearly doubles

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Goodyear Tire & Rubber Co. has reported second-quarter net sales of nearly $5.2 billion, down $470 million from this time last year. The company’s net income of $103 million is nearly double the $56 million Goodyear reported in 2011.

After minority shareholders’ income and preferred stock dividends are deducted, Goodyear’s net income available to common shareholder is $85 million, or 33 cents per share, for the three months ended June 30, 2012. That was up from $40 million, or 16 cents per share, a year ago.

The company reported that a drop in tire sales has been offset by lower costs, and it expects global sales to be sluggish. Goodyear’s revenue dropped 8.4% to $5.15 billion as tough economic conditions in Europe reduced demand.

"We are taking actions to manage our European business through this tough environment and ensure we are well positioned for continued growth in targeted market segments," said Goodyear CEO Richard Kramer. “Recessionary economic conditions in Europe continue to have a negative impact on tire industry volumes in the region.’

Kramer said that three of Goodyear’s businesses increased year-over-year operating income and margins, all in a difficult economic environment.

"North American Tire continues to build on the structural improvements we've made to the business and has achieved year-over-year increases in operating income for 12 consecutive quarters," Kramer said. "The business is on track to achieve its 2013 target of $450 million in segment operating income this year, one year ahead of plan."

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