AKRON, Ohio – The Goodyear Tire and Rubber Company reported a 5% decrease in sales for the second quarter of 2019.
AKRON, Ohio – The Goodyear Tire and Rubber Company reported a 5% decrease in sales for the second quarter of 2019.
Sales were $3.6 billion, a reduction caused by unfavorable currency translation, lower volume, and reduced sales from other tire related businesses, officials said.
Tire unit sales totaled 37.4 million, a 4% decrease from 2018, though replacement tire shipments declined less than 1%. Original equipment unit volume was down 11%,reflecting lower global vehicle production and strategic fitment choices.
Goodyear’s second quarter 2019 net income was $54 million, down from $157 million – about 65 cents per share, from a year ago. Second quarter 2019 adjusted net income was $58 million, compared to $150 million in 2018.
Company CEO Richard Kramer said Goodyear continued to perform well, despite the challenging market place.
“We have continued our focus on strengthening our business by investing in premium supply and enhancing our OE pipeline and cost competitiveness,” Kramer said in a media statement.
“I am encouraged that several of the external factors that have impacted our business in recent quarters are beginning to moderate, positioning us to deliver stronger results going forward,” he said.
Goodyear’s sales for the first six months of 2019 were$7.2 billion, a 6% decrease from the same period in 2018. Company officials said unfavorable foreign currency translation, lower volume and reduced sales from other tire related businesses were responsible.
Tire unit volumes totaled 75.4 million, down by 3% from 2018 Goodyear’s net loss was$7 million for the first six months of 2019, or about 3 cents per share, compared to net income of $232 million in the prior year’s period.
The first half of 2019 included several significant items, most notably $107 million in rationalization charges, primarily related to the previously announced plan to modernize two tire manufacturing facilities in Germany.
Adjusted net income for the first half of 2019 was $103million compared to $272 million in the prior year’s period.
The company reported first half segment operating income of $409 million in 2019, down from $605 million a year ago. The decrease was primarily due to higher raw material costs.
Goodyear is one of the world’s largest tire companies. It employs about 64,000 people and manufactures its products in 47 facilities in 21 countries around the world. It has two Innovation Centers, one in Akron, Ohio, and the second in Colmar-Berg, Lux- embourg.