AKRON — Goodyear suffered a 65.9% drop in operating income for the quarter ended June 30 on 8.6% lower sales, results that drove company into the red on a net basis to the tune of $208 million.
Segment operating income fell to $124 million on revenue of $4.87 billion, cutting the operating ratio 4 ½ points to 2.5%. Goodyear cited the negative effects of lower sales volume and higher expenses for the drop into the red.
Tire unit sales volume fell 10.7% in the quarter from a year earlier to 40.8 million units, Goodyear said, with replacement volume down 15.1%, which more than offset a 5.4% improvement in OE supplies.
It's the third straight quarter with lower operating income and a net loss. In the first quarter, Goodyear suffered a 49.8% drop in segment operating income and a net loss of $101 million.
For the first six months of the year, Goodyear reported a net loss of $308 million on 12% lower revenue of $9.81 billion. In fiscal 2022, the first half net was a profit of $262 million.
Based on the first-half results and current market trends, Goodyear has downgraded its industry outlook for the second half for both consumer replacement and commercial replacement.