AKRONGoodyear's net income fell 9.9 percent to $192 million for the second quarter, ended June 30, as sales dropped 10.4 percent to $4.17 billion, compared with the year-ago period.
However, the firm reported record segment operating income of $556 milliona 20.9-percent increase over the year-ago perioddue to what it called a favorable price-mix net of raw materials and cost reduction actions.
Akron-based Goodyear said the sales slump was largely attributable to unfavorable foreign currency translation of $401 million.
Tire unit volumes totaled 40.8 million for the second quarter, up 1 percent over last year. Original equipment unit volume jumped 4 percent while replacement tire shipments slid 1 percent.
For the first six months, Good-year more than doubled its net income to $416 million, from $155 million in the 2014 period, despite a drop in net sales.
Sales fell 10.2 percent to $8.2 billion, reflecting unfavorable foreign currency translation of $794 million, the company said. Tire unit volumes totaled 81.6 million for the first half, up 1 percent from 2014. Replacement tire shipments edged up 1 percent while OE unit volume rose 3 percent.
The company's record first-half segment operating income of $947 million was a 13.7-percent increase from the year-ago period, due to favorable price/mix net of raw materials and cost reduction actions, which Goodyear said exceeded the impact of inflation and unfavorable foreign currency translation.
Goodyear's operating income in North America surged 54.3 percent to a record $321 million for the quarter, despite a 0.9-percent dip in sales to $2.03 billion. The earnings improvement was driven by favorable price/mix net of raw materials and higher tire volume, the tire maker said.
The North America segment boosted second-quarter tire unit sales 3.3 percent to 15.8 million, which was more than offset by a decrease in third-party chemical sales. Replacement tire shipments rose 1 percent while OE unit volume climbed 9 percent.
North America continued to lead the way with a 54-percent increase in segment operating income and a 16-percent segment operating margin driven by strong demand for our products, Goodyear Chairman and CEO Richard J. Kramer said.