Goodyear posts record sales in Q2 on reduced tyre volumes

ERJ staff report (DS)

Akron, Ohio -- Goodyear said its revenues per tyre jumped by 18 percent in the last three months, but it sold fewer tyres. The company also posted record revenues in the three months to June 2011.

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. Tyre unit volumes totaled 42.9 million, down 2 percent from 2010, primarily reflecting weaker industry volumes, particularly in the North American consumer tyre business.

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 tyre unit volume. Original equipment unit volume was up slightly. Replacement tyre shipments were up 2 percent. Second quarter revenue per tyre increased 19 percent in 2011 compared to 2010, excluding the impact of foreign currency translation.

North American Tire's second quarter 2011 sales increased 18 percent from last year to $2.4 billion, a second quarter record. Revenue per tyre increased by 20 percent, compared to 2010's second quarter. Original equipment unit volume decreased 9 percent. Replacement tyre shipments were down 5 percent.

Latin American Tire's second quarter sales increased 21 percent from last year to $640 million, a record for any quarter. Original equipment unit volume was flat. Replacement tyre shipments were down 5 percent. Second quarter revenue per tyre 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 tyre business in April 2011.

Asia Pacific Tire's second quarter sales increased 27 percent from last year to $626 million, a record for any quarter. Original equipment unit volume was down 10 percent, reflecting the impact of the natural disaster in Japan. Replacement tyre shipments were up 3 percent. Second quarter revenue per tyre increased 18 percent in 2011 compared to 2010, excluding the impact of foreign currency translation.

Goodyear's sales for the first six months of 2011 were $11 billion, up 25 percent from $8.8 billion in the 2010 period. Sales reflect improved price/mix and the $140 million impact of a 2 percent improvement in tyre unit volume, as well as a $497 million increase in sales in other tyre-related businesses, primarily third-party chemical sales by North American Tire. In addition, favorable currency translation increased sales by $473 million.

Goodyear expects the global tyre industry will continue to grow in 2011. In recognition of second quarter volume levels and a reduced outlook for the U.S. consumer replacement industry, the company now expects that its unit volumes for the year will increase at the lower end of its previously announced range of 3 percent to 5 percent.

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Press release from Goodyear