The Goodyear Tire & Rubber Company reported robust results for the second quarter and first half of 2016. The leading tire manufacturer in the world recorded a strong net income of $202 million for second quarter of 2016, and $386 million for first half of the year.
“We delivered higher volumes and solid earnings in the quarter, achieving operating margins above 11 percent in all three business units,” said Richard J. Kramer, chairman and chief executive officer. “Industry fundamentals remain favorable across many of our key markets and demand for our premium, high-value-added tires is strong. Our focus remains on the disciplined execution of our strategy and delivering on our financial targets.”
Goodyear’s second quarter 2016 sales were $3.9 billion, down from $4.2 billion a year ago, with the decrease largely attributable to the deconsolidation of the company’s subsidiary in Venezuela, the sale of the North American motorcycle tire business and unfavorable currency translation. Tire unit volumes totaled 41.5 million, up 2 percent from 2015, driven by growth in the Asia Pacific and Europe, Middle East and Africa regions. Replacement tire shipments were up 4 percent. Original equipment unit volume was down 4 percent.
Goodyear’s sales for the first six months of 2016, on the other hand, were $7.6 billion, down 8 percent from the 2015 period, reflecting unfavorable foreign currency translation of $225 million and the deconsolidation of Venezuela. Tire unit volumes totaled 83.0 million, up 2 percent from 2015, driven by growth in the Asia Pacific region, primarily in Japan and China. Replacement tire shipments were up 3 percent. Original equipment unit volume was down 1 percent. Excluding the impact of the deconsolidation of Venezuela, unit volumes increased 3 percent.
