Goodyear reports record first-quarter earnings

Akron, Ohio – Goodyear Tire & Rubber Co. achieved record earnings for the first quarter of 2015 despite a significant decline in sales, the company reported 29 April.

Operating income for the first three months came in at $391 million, up from $373 million a year ago. The increase was driven by higher sales volume, a net benefit from changes in price/mix and raw material costs and improvements in other cost items.

These gains were made despite a drop in sales for first quarter of 2015 – down to $4 billion (€3.6 billion) from $4.5 billion in 2014.

Goodyear put down the decrease to “unfavourable” foreign currency factors, which contributed to £393 million of the drop.

Tire unit volumes totalled 40.8 million for the first quarter of 2015, up 2 percent from last year. OE unit volume was up 3 percent and replacement tire shipments were up 2 percent.

“Our strong first quarter provides solid momentum as we start 2015,” said CEO Richard Kramer.

“We overcame significant foreign currency headwinds and delivered record earnings led by North America, which achieved its fourth consecutive quarter of segment operating income margin of more than 10 percent,” he added.