AKRON (June 23, 2003) — Goodyear's shipments of consumer replacement tires increased in May over the same month in 2002 while industry shipments fell almost 4 percent, according to the Akron-based tire maker's monthly investor update.
Goodyear-brand consumer replacement tires were especially strong through the dealer channel, the company said, without providing specific numbers. Goodyear said it also gained share in the commercial replacement market, while industry shipments were up 8 percent in May.
Goodyear's shipments to original equipment customers declined more than the industry's 8 percent as a result of the tire maker's strategy of reducing OE contracts. But Goodyear said it gained share in commercial OE as industry shipments fell 5 percent.
Segment operating income declined as a result of unfavorable raw materials costs and price/mix and conversion costs, which were partially offset by lower labor and development costs. The unfavorable price mix was due to a shift in brand mix in commercial tires as well as more purchases of trailer tires, the tire maker said.