Goodyear’s second quarter net income increases

qiangzi

Wednesday, August 1, 2012

Akron, OH - Goodyear Tire & Rubber reported higher net income for the second quarter of 2012 than a year ago. Goodyear’s second quarter 2012 net income available to common shareholders was $85 million (33 cents per share), up from $40 million (16 cents per share) in the 2011 quarter. All per share amounts are diluted. The 2012 second quarter included total charges of $25 million (9 cents per share) due to rationalizations, asset write-offs and accelerated depreciation, debt financing fees of $24 million (9 cents per share) related to the refinancing of $3.2 billion in credit facilities, $20 million. Goodyear’s second quarter 2012 sales were $5.2 billion, down 8% from last year’s record-setting total, reflecting weaker economic conditions and unfavorable foreign currency translation. “Three of our businesses increased year-over-year operating income and margins in a difficult economic environment,” said Richard J. Kramer, chairman and chief executive officer. “Our improved ability to remain profitable through economic cycles is evident in our second quarter results and better positions us going forward given ongoing uncertainty in the global economic and policy environment,” he added. “Our $336 million of segment operating income is a strong performance given global tire volumes that are similar to those we saw at the depths of the 2009 recession when the company reported a segment operating loss,” Kramer said. “It is clear evidence that our strategy is working. “North American Tire continues to build on the structural improvements we’ve made to the business and has achieved year-over-year increases in operating income for 12 consecutive quarters,” Kramer said. “The business is on track to achieve its 2013 target of $450 million in segment operating income this year, one year ahead of plan.” Kramer said recessionary economic conditions in Europe continue to have a negative impact on tire industry volumes in the region. “We are taking actions to manage our European business through this tough environment and ensure we are well positioned for continued growth in targeted market segments,” he added. “The long-term industry MegaTrends remain in place,” Kramer said. “We expect global tire demand to recover and we remain committed to our 2013 target of $1.6 billion in segment operating income.” -