AKRON (Sept. 23, 2003) — Operating income at Goodyear's North American Tire unit fell in August from the year-ago level on high raw material and energy costs though the tire maker gained market share in consumer replacement tires, the company said.
According to its monthly investor update, Goodyear's shipments of consumer replacement tires in August outpaced the industry's 4-percent increase. But shipments of commercial replacement tires fell more than the industry's decline of 10 percent, Goodyear said, citing unfavorable product mix.
For the month, shipments of consumer tires to original equipment manufacturers declined less than the industry's 11 percent, and Goodyear shipments of OE commercial tires fell at about the same rate as the industry's 10.5 percent decrease.
The Akron-based tire maker did not provide figures for its shipments.
In addition to high raw materials and energy costs, Goodyear said conversion costs were higher in August as a result of lower production volume and higher wage and benefit costs.
In Goodyear's other business units, operating income for August increased in Eastern Europe, Latin America, Engineered Products and Chemical. Operating income fell in Asia and was unchanged in European Union.