First quarter revenue for The Goodyear Tire & Rubber Company was up 4% per tire, excluding foreign exchange, and U.S. consumer replacement tire shipments increased by 6%, according to Goodyear.
“We gained momentum in the U.S. during the quarter, as our consumer and commercial replacement businesses both grew share, while increasing the value we capture in the marketplace,” said Richard J. Kramer, chairman, chief executive officer and president. “In addition, we took steps to increase our long-term competitiveness. The plans we announced to modernize our Hanau and Fulda manufacturing facilities in Germany will improve our supply of cost-effective premium tires in Europe, helping us achieve our goal of having the right tire, at the right place, at the right time, at the right cost.”
Goodyear’s first quarter 2019 sales were $3.6 billion, down 6% from $3.8 billion a year ago, driven by unfavorable currency translation and lower volume in its international businesses, partially offset by improvements in price/mix, Goodyear said.
Tire unit volumes totaled 38 million, down 3% from 39 million in the year ago quarter. Original equipment unit volume declined 7%, primarily reflecting weaker U.S. volumes and lower automotive production in China and India, Goodyear said. Replacement tire shipments were down less than 1% compared with a year ago.
Goodyear’s net loss was $61 million in the first quarter of 2019 (26 cents per share) compared to net income of $75 million (31 cents per share) in the year-ago quarter. The first quarter of 2019 included $93 million in charges related to the previously-announced plan to modernize two tire manufacturing facilities in Germany, Goodyear said.
First quarter 2019 adjusted net income was $45 million (19 cents per share) compared to $122 million (50 cents per share) in 2018. Per share amounts are diluted.
The company reported first quarter segment operating income of $190 million in 2019, down from $281 million a year ago. The decrease reflects higher raw material costs, lower volume, unfavorable foreign currency translation and weaker results from other tire-related businesses, partially offset by favorable price/mix, improved overhead absorption and net cost savings, Goodyear said.
Americas business segment
Goodyear’s first quarter 2019 sales decreased 3% from last year to $1.9 billion in its Americas business unit, the company reported. Sales reflect the negative effect of foreign currency translation and lower third-party chemical sales, partially offset by improved price/mix, Goodyear says. Replacement tire shipments were up 3%, driven by an increase of 4% in consumer replacement. U.S. consumer replacement volume increased 6% over the prior year, led by above-average growth in the 17-inch-and-greater category, Goodyear says. Original equipment unit volume was down 8%, attributable to a 10% decrease in consumer OE driven in part by the impact of changes in OEM production, according to Goodyear.
First quarter 2019 segment operating income of $89 million was down 30% from the prior year. The decrease reflects higher raw material costs, reduced earnings from the company’s other tire-related businesses and unfavorable foreign currency translation, partially offset by favorable price/mix and improved overhead absorption, Goodyear says.