Goodyear’s second quarter 2011 net income available to common shareholders was $40 million (16 cents per share), compared with $28 million (11 cents per share) in the 2010 quarter.  All per share amounts are diluted.

The 2011 second quarter included total charges of $66 million (27 cents per share) due to rationalizations, asset write-offs and accelerated depreciation, financing fees of $53 million (22 cents per share) related to the early partial redemption of 10.5 percent senior notes, $7 million (3 cents per share) related to discrete tax charges, and $3 million (1 cent per share) in costs related to tornado damage at a manufacturing facility; and a gain of $10 million (4 cents per share) on asset sales.  All amounts are after taxes and minority interest.

Business Segment Results

North American Tire’s second quarter 2011 sales increased 18 percent from last year to $2.4 billion, a second quarter record. Sales reflect improved price/mix, which drove a 20-percent increase in revenue per tire, excluding the impact of foreign currency translation, compared to 2010′s second quarter. Original equipment unit volume decreased 9 percent. Replacement tire shipments were down 5 percent. Sales were positively impacted by $178 million from higher sales in other tire-related businesses, primarily third-party chemical sales.

Second quarter 2011 segment operating income of $137 million was $121 million above the prior year and the highest achieved in any quarter since 1998.  Improved price/mix of $216 million more than offset $131 million of higher raw material costs. Fixed cost recovery due to higher production levels contributed $20 million to segment operating income. Segment operating income also benefitted from a $20 million reduction in general and product liability expense, higher sales in other tire-related businesses and actions to reduce costs, while higher USW profit sharing expense was an offset.

“North American Tire’s results benefitted 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,” Kramer said.

Europe, Middle East and Africa Tire’s second quarter sales increased 34 percent from last year to $1.9 billion. Sales reflect a 2 percent increase in tire unit volume, strong price/mix performance and favorable foreign currency translation of $222 million. Original equipment unit volume was up slightly.  Replacement tire shipments were up 2 percent. Second quarter revenue per tire increased 19 percent in 2011 compared to 2010, excluding the impact of foreign currency translation.

Second quarter 2011 segment operating income of $126 million was $53 million above the prior year.  Improved price/mix of $199 million more than offset $135 million of higher raw material costs. The impact of favorable foreign currency translation and actions to reduce costs also contributed to segment operating income.

Latin American Tire’s second quarter sales increased 21 percent from last year to $640 million, a record for any quarter. Sales reflect strong price/mix performance and favorable foreign currency translation of $55 million.  Original equipment unit volume was flat. Replacement tire shipments were down 5 percent.  Second quarter revenue per tire increased 9 percent in 2011 compared to 2010, excluding the impact of foreign currency translation. Sales were negatively impacted by $25 million resulting from the sale of the farm tire business in April 2011.