Goodyear 2Q Earnings Down 9 Percent
Monday, July 24th 2000, 12:00 am
By: News On 6
AKRON, Ohio (AP) â€” Goodyear Tire & Rubber Co. reported Monday that its second-quarter earnings fell 9 percent and were hurt by resistance to price increases, rising raw material costs and competition.
The nation's No. 1 tire manufacturer earned $59.7 million, or 38 cents per share, down from $65.7 million, or 41 cents per share, in the second quarter of 1999.
The Akron-based company had warned in late June that its second-quarter earnings would be below analysts' estimates of 58 cents per share.
Goodyear, which has posted some of its lowest profits in a decade, announced two weeks ago that it was shaking up its management to improve growth.
Revenues increased almost 14 percent to $3.47 billion, compared with $3.05 billion a year ago.
Tire unit volume rose 20 percent, primarily due to the addition of the Dunlop tire operations it acquired during an alliance with Japan's Sumitomo Rubber Industries. Dunlop tire operations contributed $564 million in revenues.
Price increases implemented in the second quarter met with marketplace resistance and had a negative impact on volume in North America and Europe. The strong dollar and weak Euro helped decrease Goodyear's overseas sales.
For the first six months, Goodyear earned $123.3 million, or 78 cents per share, up from $91.2 million, or 57 cents per share, in the first half of 1999.
Revenues were $7.01 billion, up from $6.04 billion.
Goodyear employs more than 105,000 people in its 90 facilities worldwide.