AKRON (Aug. 22, 2003)—Goodyear North American Tire shipped more consumer replacement and original equipment commercial tires in July than a year earlier, but the unit's operating income fell from year-ago levels due to “significantly” higher raw material costs.
Separately, Goodyear said it is instituting price increases of up to 4 percent on its Goodyear, Dunlop and Kelly brands of consumer tires to help offset these costs.
In its monthly investor update for July, Goodyear also said conversion costs were impacted in the month from lower production volume and higher wage and benefit costs.
In July, Goodyear said its shipments of consumer replacement tires increased more than the industry's 7-percent rise from year-ago levels. Market share gains for both the Goodyear and Dunlop brands were attributed to continued strength in the dealer channel.
At the same time, Goodyear's shipments of consumer tires to original equipment manufacturers declined more than the industry's 10-percent fall from July 2002 levels. The fall is part of Goodyear's recent strategy of being more selective in the OE segment, the tire maker said.
While industry shipments of commercial tires fell 8 percent in July, Goodyear said it gained market share in commercial replacement tires. It said it also saw an increase in shipments of OE commercial tires while industry shipments fell 4 percent.