All seven of Goodyear Tire & Rubber Co.´s business units -- including the all-important North American Tire operation -- were profitable during the second quarter of 2004, leading to net income of $25.1 million.
Goodyear´s North America Tire operation, its largest business segment, posted segment operating income of $30.4 million after recording a $10.2 milliion loss the second quarter of 2003.
Unit volume in North America increased 1.6% in the second quarter to 25.7 million units; replacement volume was up 5.6% vs. the same period last year, while original equipment volume was down 5.9%.
North American sales of $1.98 billion were a second-quarter record for the company, plus a 17.1% increase compared to the same period last year.
Goodyear says second-quarter results in North America were driven by "sustained improvement in Goodyear-brand tires, as well as some stabilization in the company´s private label business."
Goodyear´s European Union Tire recorded segment operating income of $56.6 million, a 50% increase over the same period a year ago. Unit volume increased 3.2% to 15.4 million units, while sales increased 10.4% to $1.06 billion.
Second-quarter operating income for all seven segments was $285.8 million, an increase of 91.7% compared to $149.1 million in the second quarter of 2003.
Total segment operating income is the sum of the segment operating income of the individual strategic business units (SBUs) as determined in accordance with Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information."
(Goodyear believes total segment operating income is useful because it represents the aggregate value of income created by the company´s
SBUs and excludes items not directly related to the SBUs for performance evaluation purposes.)
