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Currency Fluctuations Hold Down Goodyear First Half Sales
Time: Jul 29th 2015 Copy editor: Tyrefull
"Foreign currency translation” tripped up Goodyear Tire & Rubber Co. for the first half of 2015, the tiremaker claimed, as it posted sales for the first six months that were off 10% year-over-year.
For the first half of 2015, Goodyear posted sales of $8.2 billion, down from 2014’s $9.13 billion in revenue. Directly impacting the 2015 results was a $794 million swing in currency values year-over-year.
Globally, tire unit volumes totaled 81.6 million for the first half, up 1% from 2014; replacement market tire shipments were up 1% while OE shipments were up 3%, Goodyear said.
Goodyear’s first half segment operating income of $947 million was up 14% from last year…and also a record, Goodyear said. “Compared to the prior year, year-to-date segment operating income reflects the benefits of favorable price/mix net of raw materials and cost reduction actions, which exceeded the impact of inflation and unfavorable foreign currency translation,” the tiremaker said in its release.
The North American Tire unit saw unit sales up marginally for the half, selling 30.6 million tires in 2015 versus 29.9 million in 2014. Still, in dollars, sales were off; first half 2015 came in at $3.88 million compared to $3.92 the year prior. Replacement tire shipments were up 1%, and OE unit volume was up 9%.
"We delivered outstanding segment operating income growth and achieved a segment operating margin of more than 13%, despite significant foreign currency and global economic headwinds,” said Rich Kramer, chairman and CEO. “North America continued to lead the way with a 54% increase in segment operating income and a 16% segment operating margin driven by strong demand for our products. Additionally, three of our four businesses posted segment operating margins in excess of 10%.”
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