A worldwide slowdown in auto and truck sales, plus currency devaluations in some countries, hurt second quarter sales and earnings for The Goodyear Tire & Rubber Co.

Overall net income was $7.8 million for the quarter, compared with $77.1 million in second quarter 2000 and a $46.7 million loss in first quarter of 2001. Sales totaled $3.58 billion for the second quarter, compared to $3.61 billion a year ago and $3.4 billion the first quarter of this year.
Second quarter tire volume was 55.5 million units worldwide, down less than 1% from second quarter 2000. Goodyear blamed the unit decline on reduced shipments to North American auto and truck makers as well as weak replacement markets in North America, Europe, Latin America and Asia.
Tire sales in North America totaled $1.83 billion for the quarter, compared to $1.76 billion a year ago. Operating income was $49 million, compared to $86.1 million in second quarter 2000. North American tire volume was 28.9 million units, about level with last year’s second quarter. Shipments to original equipment customers were down 12.7%. Replacement market volume was up 7.5%. In the latter weeks of the second quarter, Goodyear sold about 1 million tires through a Ford Motor Co. customer satisfaction program as replacements for certain Firestone-brand tires.
Goodyear also noted that, in North America, industry shipments of consumer replacement tires were up 1% over last year but its shipments rose 10% and its market share was up more than three points. The company said some tire revenue losses from weaker demand by equipment manufacturers was offset by a change in product mix to higher priced tires and price increases in the replacement market.
Second quarter sales of Goodyear Engineered Products were $300.9 million, compared to $306.4 million a year ago. The decrease was attributed to lower shipments of apr spring, hose, power transmission belts and molded rubber products to auto and truck makers. Operating income was $8.4 million compared to $20.5 million, due to lower revenues, higher raw material costs, and the impact of production cuts.
Chemical product sales totaled $271.6 million for the quarter, compared to $293.8 million a year ago. Operating income was $12.9 million compared to $30 million. The sales reduction was due primarily to reduced demand from tire manufacturers.
Goodyear has reduced production and inventory, cutting some 7,800 jobs so far. Another 2,000 positions will be eliminated this year.