Goodyear Tire & Rubber Company reports that its second quarter 2017 sales were down, coming in at $3.7 billion compared to $3.9 billion a year ago.
The company said the decrease largely attributable to lower tire unit volume, partially offset by improved price/mix. Tire unit volumes totaled 37.4 million, down 10 percent from 2016, primarily in Europe, Middle East and Africa and the Americas. Replacement tire shipments were also down, showing a decrease of 11 percent. Original equipment unit volume was down 8 percent. Its results for the second quarter and first half of 2017 also showed percentage drops units sold and operating income.
The company reported second quarter segment operating income of $361 million in 2017, down from $531 million a year ago.
Richard J. Kramer, chairman and chief executive officer of Goodyear said these results reflect the impact of volatile raw material costs and an increasingly competitive U.S. market in addition to a lower OE and consumer replacement demand across many of Goodyear’s key markets during the first half of the year.
“The combination of these factors has led to a highly unusual first half environment, particularly given the favorable trends in miles driven, gasoline prices and unemployment that are generally supportive of our industry,” Kramer said.
In addition, this quarter brought the closure of Goodyear’s Germany based tire manufacturing facility on July 14. From the closure, the company estimated that it would save $45 million annually, beginning in 2018.
