The continued decline in orders for tires and engineered products by North American auto and truck manufacturers has a "substantial" impact on Goodyear's first quarter performance.
Its North American Tire operation sold 25.8 million units for the quarter, down 9.6% from first quarter 2000. Sales to original equipment customers were down 22.1%. Replacement market sales volume was down 2.7%. Revenue was $1.62 billion, down slightly from $1.73 billion a year ago. The company said a drop in unit sales was partially offset by improved pricing and product mix.
In North America, industry shipments of commercial truck tires to the replacement market were down about 16%, but Goodyear-brand shipments were up 7.5%. In the consumer tire market, industry demand was down some 7%, while Goodyear-brand sales grew more than 4%.
The company said competitive pressures exist in several North American markets, but price increases enacted earlier this year are providing "much-needed relief from high raw material and energy costs." However, raw material costs increased another 3% in first quarter and continue to rise.
Goodyear’s European tire shipments in the first quarter were up 3.1%. Original equipment volume increased 12%; replacement market volume was flat. Volume to eastern Europe, Africa and the Middle East was down slightly from 2000 due mainly to a 3.1% drop in original equipment sales. Replacement market sales volume was flat.
Latin American volume was up 6.2%. Original equipment sales volume was up 41.6%, while replacement market sales were down 3%. Asia volume was down 4.1%. Original equipment volume was up 11.6% while replacement market sales volume dropped 8.9%.
Engineered product revenues in the first quarter totaled $299.4 million compared to $321 million a year. The company said the decline was due to reduced hose, molded rubber product, air spring and power transmission product shipments to original equipment customer in North American. The replacement markets for hose and power transmission products remain weak.
Worldwide, Goodyear’s sales in first quarter, including tires, engineered products, and chemical products, totaled $3.4 billion versus $3.7 billion first quarter 2000. Its first quarter net loss, after special charges and the impact of foreign currency changes, was $46.7 million, compared to a $48.2 million profit the same period last year.
Its North American Tire operation sold 25.8 million units for the quarter, down 9.6% from first quarter 2000. Sales to original equipment customers were down 22.1%. Replacement market sales volume was down 2.7%. Revenue was $1.62 billion, down slightly from $1.73 billion a year ago. The company said a drop in unit sales was partially offset by improved pricing and product mix.
In North America, industry shipments of commercial truck tires to the replacement market were down about 16%, but Goodyear-brand shipments were up 7.5%. In the consumer tire market, industry demand was down some 7%, while Goodyear-brand sales grew more than 4%.
The company said competitive pressures exist in several North American markets, but price increases enacted earlier this year are providing "much-needed relief from high raw material and energy costs." However, raw material costs increased another 3% in first quarter and continue to rise.
Goodyear’s European tire shipments in the first quarter were up 3.1%. Original equipment volume increased 12%; replacement market volume was flat. Volume to eastern Europe, Africa and the Middle East was down slightly from 2000 due mainly to a 3.1% drop in original equipment sales. Replacement market sales volume was flat.
Latin American volume was up 6.2%. Original equipment sales volume was up 41.6%, while replacement market sales were down 3%. Asia volume was down 4.1%. Original equipment volume was up 11.6% while replacement market sales volume dropped 8.9%.
Engineered product revenues in the first quarter totaled $299.4 million compared to $321 million a year. The company said the decline was due to reduced hose, molded rubber product, air spring and power transmission product shipments to original equipment customer in North American. The replacement markets for hose and power transmission products remain weak.
Worldwide, Goodyear’s sales in first quarter, including tires, engineered products, and chemical products, totaled $3.4 billion versus $3.7 billion first quarter 2000. Its first quarter net loss, after special charges and the impact of foreign currency changes, was $46.7 million, compared to a $48.2 million profit the same period last year.
media brand
0 Comments
See all comments