Goodyear’s financial results for the third quarter of 2019 show that sales were US$3.8bn – down 3% from a year ago. According to the company, this decrease is attributable to foreign currency translation and lower third-party chemical sales.
“In the Americas, we saw continued strength in our US consumer replacement business and solid growth in Brazil, giving us positive momentum in these important markets as we head into the final months of the year,” said Richard J Kramer, chairman and CEO.
Tire unit volumes totaled 40.3 million, down 1% from 2018. Original equipment unit volume decreased 5%, driven by lower global vehicle production. Replacement tire shipments increased 1%.
Goodyear’s third-quarter 2019 net income was US$88m, down from US$351m a year ago. The decrease was driven by a US$287m net gain recorded during the third quarter of 2018 resulting from the company’s TireHub transaction.
In addition, the US brand reported segment operating income of US$294m in 2019, down from US$362m a year ago. The decrease primarily reflects increased raw material costs, the impacts of lower volume, and the non-recurrence of a favorable indirect tax settlement in Brazil.
Regarding Europe, Kramer said that the industry conditions were softer than they anticipated. He added “We continued to see an adverse impact from lack of alignment in our distribution channels. In response, we expect to accelerate our plans to rationalize distribution in the region. These actions, which will begin early next year, should improve the focus on our brands and ensure that we capture the full benefits of the investments we are making to increase the supply of premium, high-margin tires over the next few years.”
In Asia-Pacific, volume was up 5%, driven by China, which helped mitigate the impact of lower auto production.