Goodyear sold 1m less tires in North America in Q1 than year ago

26 April 2013 17:14  [Source: ICIS news]

HOUSTON (ICIS)--Goodyear said on Friday that it sold 14.8m tyres in North America in the first quarter of 2013, a million fewer tyres than it sold in the same period in 2012.

Goodyear sold 39.5m tyres worldwide in the first quarter of 2013, down 8% from year ago tyre sales, the US-headquartered tyre maker said in a release reporting Q1 earnings.

The company said Q1 tyre sales to original equipment manufacturers, such as Ford and GM, were flat compared with a year ago, while replacement tyre shipments fell by 9%, "reflecting weak industry demand and decreases sales of lower-value consumer tires".

In Europe, Middle East and Africa, Goodyear's Q1 tyre sales were down by nearly 3m units from a year ago, 15.1m in 2013 compared with 18.0m in 2012. Both Latin America and Asia Pacific reported sales declines of less than 0.5% for the current quarter.  

As a result of the reduced tyre sales, Goodyear is now forecasting its 2013 tire unit volumes to be essentially flat compared with 2012 "as a result of weak industry conditions, especially in Europe".

For the full year in North America, Goodyear now expects consumer replacement tyre sales to be at 2012 levels. The company expects consumer original equipment volumes in North America to be higher by about 5%, while commercial replacement and original equipment are both expected to remain at about 2012 levels.

Goodyear also expects full-year 2013 consumer replacement levels to be essentially at 2012 levels for Europe, Middle East and Africa. The company expects original equipment volumes to be down by approximately 5%, commercial replacement to be up by about 5% and commercial original equipment to be flat to up 5%.

Due to continued weakness in the European economy, Goodyear said it is implementing a three-point plan to return its business to historical margin levels. The company plans to exit the farm-tyre business in the Europe, Middle East and Africa region and close its manufacturing plant in France.

For the first quarter, Goodyear reported net income of $26m (€20m), or 10 cents/share, compared to a net loss of $11m, or 5 cents/share a year ago.

Goodyear’s first quarter 2013 sales were $4.9bn, compared with $5.5bn a year ago. First quarter 2013 sales reflect $364 million in lower tire unit volumes; $178 million in lower sales in other tire related businesses, most notably third party chemical sales in North America, and $115 million in unfavourable foreign currency translation. Tire unit volumes totalled 39.5m, down 8% from 2012, primarily reflecting lower volumes in Europe.

($1 = €0.77) 

By: Mark Yost
+1 713 525 2653

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