Goodyear Experiences Difficult Second Quarter
On July 28th, Goodyear posted the results of a difficult second quarter marked by diminishing net revenue, net sales, operating profit and unit tire sales volume, compared to the same period last year.
Sales totals for the company have fallen to $3.69 billion, compared with $3.88 billion registered for the second quarter in 2016. Per share net income fell by 17 cents to 58 cents per share. According to Goodyear, which has increased tire prices twice this year as a result of increases in the price of raw materials, April volumes were “significantly worse than expected,” mainly coinciding with price increases in the U.S. and Europe. “Our second quarter results reflect the volatility of the raw material costs and an increasingly competitive environment, particularly in the American and European markets,” explained company Chairman & CEO, Richard Kramer.
According to Mr. Kramer, there was a weakening in demand in both the OE and consumer replacement markets. Replacement tire deliveries were down 11% and original equipment unit volume was down 8%.
The major automakers reported substantial declines in sales of North-American made vehicles for June, which represents the fourth monthly decline in sales, in spite of generous consumer rebate programs and favorable loan terms.