Goodyear Reports Increase in Net Income; Tire Unit Volumes Up

AKRON, Ohio (Akron Beacon Journal/TNS) -
The Goodyear blimp
The Goodyear blimp

Goodyear Tire & Rubber Co. said Wednesday that second-quarter net income was $202 million, or 75 cents per share, up from $192 million, or 70 cents per share, in the year-ago quarter.

The Akron-headquartered tire-maker said the improvement was primarily due to a decrease in income tax expense.

Adjusted net income was $314 million, or $1.16 per share, up from $229 million, or 84 cents per share, in 2015.

Revenue for the second quarter totaled $3.9 billion, down from $4.2 billion a year ago, the company said.

The decrease is 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, the company said.

Goodyear said 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.

“We delivered higher volumes and solid earnings in the quarter, achieving operating margins above 11 percent in all three business units,” Richard J. Kramer, chairman and chief executive officer, said in a prepared statement.

“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.”