In a public recap of financial results by Goodyear Tire & Rubber Company discussing the tiremaker’s the second quarter and first half of 2018, the company’s chairman, CEO and president, Richard Kramer, in a release indicated the new joint distribution venture in partnership with Bridgestone Americas is off to a strong start.
“Our new TireHub distribution joint venture in the U.S. is performing exceptionally well out of the gate, and our shipments to the wholesale channel are running ahead of our transition plans. Goodyear’s customer base has demonstrated its loyalty to our brand and I am confident that TireHub’s best-in-class service model, together with added supply from our new Americas plant, will enhance value for our retail and fleet customers,” said Kramer.
Regarding the company’s fiscal results:
- Goodyear’s second quarter 2018 sales were $3.8 billion, up 4% from a year ago, driven by higher volume and improved price/mix.
- Tire unit volumes totaled 39.0 million, a 4% increase from 2017.
- Consumer replacement shipments in the U.S. outpaced industry growth after adjusting for the impact of the TireHub transition, driven by outperformance in the 17-inch-and-larger category.
- Replacement tire shipments rose 5%, attributable to increased industry demand and share gains in EMEA.
- Original equipment unit volume was up 3%, primarily driven by consumer demand in Asia Pacific and global commercial shipments.
Goodyear’s second quarter 2018 net income was $157 million, up from $147 million a year ago. Second quarter 2018 adjusted net income was $150 million , compared to $177 million in 2017. Second quarter segment operating income of $324 million in 2018, down from $369 million a year ago. The decrease was driven by the impacts of higher raw material costs, general cost inflation and lower price/mix, which were partially offset by the benefits from cost savings initiatives and increased sales volume.