Goodyear reports higher Q2 earnings on 24 percent sales growth
Goodyear Tire & Rubber Co. on July 28 reported record sales and higher earnings for the second quarter of 2011.
“I’m very pleased with our outstanding second quarter results, which represent another step on the path toward our 2013 targets,” said Richard J. Kramer, chairman and chief executive officer. ”They present confirmation that our strategies are right and that they are working,” he added.
“Earnings growth in North America is a key outcome of our strategies. North American Tire’s second quarter results show the type of performance we should be able to sustain once we reach our 2013 targets,” Kramer said.
Goodyear’s second quarter 2011 sales were $5.6 billion, up 24 percent from a year ago and the highest ever achieved by the company in any quarter. Tire unit volumes totaled 42.9 million, down 2 percent from 2010, primarily reflecting weaker industry volumes, particularly in the North American consumer tire business.
Second quarter sales also reflect strong price/mix improvements, which drove revenue per tire up 18 percent over the 2010 quarter, excluding the impact of foreign currency translation.
“All of our businesses continued to make solid progress in driving improved price/mix through innovative product offerings in targeted market segments,” Kramer said.
Second quarter sales were also impacted by a $221 million increase in sales in other tire-related businesses, primarily in North America, and favorable foreign currency translation of $348 million.
The company had segment operating income of $382 million in the second quarter of 2011. This was up $163 million from the year-ago quarter and a second quarter record. Segment operating income reflected improved price/mix of $554 million, which more than offset $428 million in higher raw material costs ($381 million net of raw material cost reduction actions).