Goodyear Discusses 2008 Economic Challenges at JP Morgan Investor Conference - aftermarketNews

Goodyear Discusses 2008 Economic Challenges at JP Morgan Investor Conference

Darren Wells, Goodyear's executive vice president and CFO, told attendees at yesterday's JP Morgan High Yield Conference that Goodyear is responding to the financial downturn with additional cost savings moves and inventory reductions.

MIAMI BEACH — “It is widely known that the economic slowdown is having a considerable impact on consumer demand and industry volume,” Darren Wells, Goodyear’s executive vice president and CFO, told attendees at yesterday’s JP Morgan High Yield Conference.

“Fourth quarter industry volumes were well below expected levels, prompting a significant increase to our production cuts that now extend across all business units,” he said.

Wells said Goodyear is responding to the financial downturn with additional cost savings moves and inventory reductions. “We continue to adjust production to reduce inventory levels and to keep pace with the lower demand environment,” he said.

Wells indicated that Goodyear would announce additional cost reduction moves during its Feb. 18 conference call with analysts, which follows the release of its 2008 financial report.

Raw material costs remain a challenge, Wells noted. “Goodyear’s raw material costs were approximately 13 percent higher in 2008 than in 2007, with much of this increase coming in the fourth quarter, which was up more than 25 percent. We anticipate raw material cost increases to peak in the first quarter before beginning to moderate in the second quarter.”

Goodyear estimated that 2008 North American consumer replacement shipments were down some 3.5 percent vs. 2007, with the passenger car/light truck OE market down 22 percent year over year.

On the commercial tire side, Goodyear said replacement shipments were down 11 percent and OE shipments were down about 18.5 percent.

In Europe, Goodyear said, the consumer replacement market was down 6 percent in 2008 compared to 2007, and passenger/light truck OE shipments were down 4.5 percent. In the commercial tire market, replacement shipments were down 13 percent and original equipment shipments were down 2 percent. (Courtesy of Tire Review)

You May Also Like

AutoPartSource Wins O’Reilly 2022 Sales and Service Award

AutoPartSource is an aftermarket manufacturer/distributor headquartered in Richmond, Virginia.

AutoPartSource was presented with the 2022 Sales & Service Award from O'Reilly Auto Parts on Jan. 11 in Dallas, Texas. Accepting the award was Dave Gonzales, senior vice president of sales & marketing for Momentum USA Inc., the parent company of AutoPartSource.

AutoPartSource is an aftermarket manufacturer/distributor headquartered in Richmond, Virginia. The company manufactures filtration products, including cabin air filters and PPE masks, and distributes brakes and exhaust products. 

DRiV Expands New Product Coverage Across Brand Portfolio 

Expanded coverage will be introduced for Monroe, MOOG, Fel-Pro, Walker, Wagner and Rancho throughout 2023.

Tenneco Adds H2 to Alt. Fuels Engine-Testing Capabilities

Extensive testing capabilities established in Germany and Michigan for internal combustion engines powered by hydrogen.

Gentex to Open Production Facility in Grand Rapids

Gentex says it continues to implement meaningful solutions to the ongoing labor shortage.

Dana Offers Spicer End Yokes for Allison Transmissions

The end yokes are designed to help minimize noise and vibration and keep drivelines running smoothly.

Other Posts

BorgWarner Included in 2023 Bloomberg Gender-Equality Index

The index measures gender equality across equal pay and gender pay parity, leadership and talent pipeline, inclusive culture and more.

New Bosch Campaign Focuses on Night Performance Wiper Blades

Bosch FOCUS and ENVISION wiper blades are designed to make nighttime driving safer in inclement weather, the company says.

US Motor Works Releases 9 New Water Pumps

The latest nine new water pumps are now in stock and ready to order.

NGK Spark Plugs Announces New Company Name and Logo 

The company says the name change is reflective of transformation in the organization’s business portfolio.