GOODYEAR TIRE Q1 NET PROFIT FALLS 10%

Time: May 2nd 2017   Copy editor: Tyrefull

Goodyear Tire’s net profit for the first quarter ended March 31,2017 fell 9.8% to $166 million on the increased input cost and weaker demand.

The company had reported a net profit of $184 million in the same period of last year.

“These results are a great outcome given an environment of rising raw material costs and weaker demand,” said Richard J. Kramer, chairman, chief executive officer and president.

Sales for the Jan-March period spiked to $3.7 billion from $3.69 billion the Jan-March period of 2016.  “This solid performance is a result of the disciplined execution of our strategy,” Kramer added.

Tyre unit volumes totalled 40.0 million, down 4 % from 2016. Original equipment unit volume was down 8 %, primarily driven by lower U.S. auto production in the first quarter of 2017 and very strong volumes in the U.S. and China during the first quarter of 2016. Replacement tyre shipments were down 2 %.

While raw material inflation has moderated in recent weeks, we continue to expect a significant year-over-year headwind in 2017,” said Kramer. “We remain confident in our ability to offset raw material cost inflation over time.”

Regionwise, Americas’ first quarter 2017 tyre unit volume was down 5 %. Sales of $2.0 billion were flat as higher chemical and tyre pricing as well as favorable foreign currency translation were partially offset by lower tyre unit volume. Replacement tyre shipments were down 2 %, original equipment unit volume was down 12 %. In the Europe, Middle East and Africa region, sales fell 1% to$1.2 billion, which reflects a 4 % decrease in tire unit volume, Replacement tyre shipments fell 5% and  OE unit volume was down by 1%.

A 3% increase was seen in sales in the Asia Pacific regions. The sales stood at $502 million primarily due to improved price/mix. Tyre unit volumes were flat. Replacement tyre shipments were up 7 % and OE unit was down 9 %.

The company confirmed its 2017 segment operating income guidance of approximately $2.0 billion and its 2020 financial targets and capital allocation plan.

AD: You can get  better price from us for Doublestar tire. Doublestar brand tire is the TOP 10 Chinese brand tires since 2004. Give us a call and  you would get a surprice price!