Lower tire volume erased $132 million from segment operating income
Goodyear Tire & Rubber swung to a $204 million net loss in the second quarter, reversing the $254 million profit it earned a year earlier. The loss came as lower tire unit volume and higher costs weighed on results, though the figures still topped analyst forecasts on both profit and revenue.
Lower tire unit volume reduced organic net sales by 1.4% in the quarter, the company said, and was the largest single drag on segment operating income. Total net sales slipped 4.8% to $4.25 billion, ahead of the $4.19 billion analysts had projected.
The impact of lower volume and higher costs showed up most clearly at the segment level. Adjusting for the sales of its chemical business and the Dunlop brand, segment operating income fell $79 million, Goodyear reported. Lower volume shaved $132 million off the measure, higher tariffs and other costs added $100 million, and inflation contributed $53 million.
On a per-share basis, Goodyear reported a net loss of 71 cents for the quarter, compared with profit of 87 cents a share a year earlier. On an adjusted basis, the company reported a loss of 61 cents a share — narrower than the 63-cent loss that analysts polled by FactSet had expected.
Goodyear shares fell 3.48%.