Goodyear Reports Second Quarter Financial Results

The Goodyear Tire & Rubber Company reported its second quarter 2009 financial results. The company’s second quarter 2009 sales were US$3.9 billion, down 25 per cent from 2008’s record second quarter. Excluding the impact of currency translation, sales were down 18 per cent from last year.

Second quarter 2009 sales reflect the US$673 million impact of a 17 per cent decline in tire unit volume due to significantly lower global industry demand as well as a US$290 million reduction in sales in other tire-related businesses, primarily third-party chemical sales by North American Tire.

The company had segment operating income of US$24 million in the second quarter of 2009, compared to US$330 million in the 2008 second quarter and a segment operating loss of US$176 million in 2009’s first quarter.

The second quarter 2009 Goodyear net loss was US$221 million (92 cents per share), compared with net income of US$75 million (31 cents per share) in 2008’s second quarter and a net loss of US$333 million ($1.38 per share) in 2009’s first quarter. All per share amounts are diluted.

“Despite the significant impact this has had on our performance, we had a respectable and encouraging second quarter,” Keegan said. “Our results strengthened compared to the first quarter as reduced raw material costs and our strategic actions aimed at our top line, cost savings and cash generation continue to have the desired effect. Our intense focus on emerging from the downturn in a position of strength is helping us significantly improve our competitiveness today.”