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Goodyear Sees First Half Profits; Tight N.A. Outlook

The tire maker reported year-to-date net income of $143 million, up from 2010’s net loss of $19 million.

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From Tire Review

AKRON, Ohio — Goodyear Tire & Rubber Co. reported sales of $11 billion through the first six months of 2011, up 25 percent from the $8.8 billion in sales posted at the same time last year.

The result was a year-to-date net income of $143 million, up from 2010’s net loss of $19 million.

Goodyear North American Tire posted sales of $4.72 billion for the first half, up considerably from $3.83 billion year-over-year. Operating profits improved from $2 million last year to $177 million for the first half of 2011. Those results came against first half unit sales of 32.8 million tires, up slightly from the 31.8 million sold during the same period last year.

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North American Tire’s second quarter 2011 sales increased 18 percent from last year to $2.4 billion, even as unit sales fell from 16.6 million tires to 15.7 million. Goodyear said its OE volume was down 9 percent for the quarter compared to the second quarter of 2010, while replacement sales were off 5 percent.

“North American Tire’s results benefited from proactive pricing for the value of our products in the face of rising raw material costs. These results will be difficult to repeat in the second half because of increasing raw material cost challenges and uncertain economic conditions,” Chairman and CEO Rich Kramer said.

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Looking forward, Goodyear said that North America consumer tire replacement sales will be flat to up 2 percent, consumer OE will be up between 5 percent and 10 percent, commercial replacement up between 10 percent and 15 percent, and commercial OE up between 40 percent and 50 percent.

 

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