2nd August, 2012
KUALA LUMPUR: Goodyear Tire and Rubber Co’s sales for the second quarter of 2012 fell by eight per cent to US$5.2 billion compared with the same period last year, reflecting weaker economic conditions and unfavourable foreign currency translation.
Goodyear, one of the world’s largest tyre manufacturers, also posted a weaker segment operating income (SOI), which declined by US$46 million to US$336 million in the same quarter reviewed, reflecting lower tyre volume and associated unabsorbed overheads.
In a statement yesterday, chairman/chief executive officer, Richard Kramer, said the US$336 million SOI was a strong performance given global volumes that were similar to those at the depths of the 2009 recession when the company reported a segment operating loss.
“It is clear evidence that our strategy is working,” he said.
Asia-Pacific’s sales fell by four per cent to US$600 million, it said.
“The sales were negatively impacted by US$38 million due to unfavourable foreign translation,” it said.
Goodyear said the record second quarter SOI of US$71 million was nine per cent higher than last year, reflecting an improved price/mix of US$21 million and higher volume.
“The SOI was negatively impacted by US$5 million in cost related to the start up of a new factory in China as well as unfavourable foreign currency translation,” it said.
On outlook, Kramer said, the company remained confident that long-term growth in the global tyre industry would continue, but at a slower pace near term than previously forecast due to continued economic challenges, particularly in Europe.
“Goodyear now expects that its full-year tyre unit volume for 2012 will be approximately five per cent to seven per cent below 2011,” he said.