Goodyear Tire & Rubber Co.'s second-quarter sales of $1.7 billion in North America were down 21% compared to 2Q 2008. That primarily reflects "significantly reduced industry demand," according to the company.
Original equipment tire unit volume declined 55%, while replacement tire shipments were down 4%. Overall unit shipments totaled 14.8 million.
Goodyear says its second-quarter sales benefited from the following:
* improved price/mix, and
* the fourth consecutive quarter of market share gains for Goodyear-brand consumer replacement tires.
The second-quarter 2009 segment operating loss of $91 million reflects lower sales and production levels, and reduced operating income from other tire-related businesses.
On the plus side, price/mix improvements of $38 million offset increased raw material costs of $35 million. The 2009 quarter also benefited from actions to reduce costs.
Increased pension expense more than offset savings resulting from the implementation of the Voluntary Employees' Beneficiary Association (VEBA) in the 2009 quarter.
Here are the financial results for the first six months for the North American Tire business unit. The percentage change in tire units from last year to this year is in parentheses.
North American Tire: tire units, 28.7 million (down 20.5%); sales, $3.2 billion; operating loss, $280 million.
Goodyear's North American Tire business unit accounts for 42.8% of the company's worldwide sales.
