The tiremaker posted first half sales of $7.5 billion, down from $10.2 billion for the first half of 2008, and a net loss of $554 million compared to net income of $222 million in 2008’s first half.
Goodyear’s North American Tire unit saw first half sales shrink from $4.13 billion last year to $3.23 billion this year, while net profit fell from $56 million for the first half of 2008 to a loss of $280 million this year. Unit sales for the period fell to 28.7 million tires from 36.1 million last year.
“There is little debate as to the severity of the economic and industry downturn we have experienced the past three quarters,” said Bob Keegan, chairman and CEO. “We are beginning to see some signs of economic stabilization and recovery, although still fragile at this stage and varied around the globe.”
“Our results strengthened compared to the first quarter as reduced raw material costs and our strategic actions aimed at our top line, cost savings and cash generation continue to have the desired effect,” he said. “Our intense focus on emerging from the downturn in a position of strength is helping us significantly improve our competitiveness today.”
Those top-line actions included cutting some 5,500 jobs world-wide, more than Goodyear’s 2009 target of 5,000 reductions, and total first half savings of $345 million. (Tire Review/Akron)
