AKRON (Aug. 4, 2005) — Goodyear posted net income of $69 million in the second quarter—marking one full year of profits since the tire maker returned to the black in the second quarter last year.
Goodyear said the improvement from last year's earnings of $30 million reflects record sales and increased unit volume. The Akron-based tire maker posted net sales of $4.99 billion, up from $4.52 billion last year. For the first half of the year, sales rose to $9.76 billion from $8.82 billion a year ago, while net income improved to $137 million compared with a $48 million loss.
Tire unit volume in the second quarter rose 2.5 percent to 56.4 million units from 55.0 million units in 2004. Volume increases were driven by gains in the European, Latin American and Asia/Pacific markets.
“Five of our businesses had record second quarter sales, and margins improved in our North American and European Union tire businesses,” said Robert Keegan, chairman and CEO. “This success is further evidence that our strategies are working and that our unwavering focus on key products, customers and markets is paying off. We continue to gain share in targeted markets.”
North American Tire, Goodyear's largest unit which had struggled for years before regaining profitability last year, posted quarterly segment operating income of $55 million, up from $41 million in 2004. Sales were up 5.8 percent to $2.3 billion from $2.17 billion a year ago. But tire unit volume fell 1.6 percent to 25.3 million units from 25.7 million units.
For the six months, NAT posted segment operating income of $66 million up from $17 million as sales jumped to $4.43 billion from $4.11 billion. Tire unit volume grew modestly to 50.6 million units from 50.4 million units.