Posted on Thursday, July 28th, 2011 at 5:08 pm.
Goodyear reported record second quarter operating income and sales.
Goodyear’s collective segment operating income rose 74.4 percent to $382 million as sales grew 24.1 percent to $5.62 billion, yielding an earnings ratio of 6.8 percent. Sales revenue was up despite a 2 percent drop in tire unit volumes. Company officials say the drop reflects weaker industry volumes, particularly in the North American consumer tire business. Strong price/mix improvements impacted second quarter sales, which drove revenue per tire up 18 percent over the 2010 quarter.
The Akron-based company reported $137 million in operating income on $2.41 billion in sales, or a 5.7 percent ratio. Sales revenue increased 17.7 percent despite a 5.4 percent drop in tires sold to 15.7 million units.
The drop in demand for consumer tires in the quarter prompted management to revise the company’s outlook for 2011, but only slightly. The company said volume growth will be at the lower end of the previous 3 to 5 percent forecast.
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