Goodyear Tire & Rubber Co., the biggest U.S. tire maker, reported lower-than-expected quarterly revenue as it sold fewer tires to vehicle makers in North America and Latin America.
The company, which competes with Japan’s Bridgestone Corp and France’s Michelin, said tires sold to vehicle makers in North America, its biggest market, fell 4 percent the quarter. Revenue in the region fell 7 percent to $2.04 billion.
However, total replacement tire sales, which are sold through dealers to customers and account for about 70 percent of total tire sales, rose 6 percent.
“We sold significantly more consumer tires and less commercial tires in the quarter giving us a less rich mix than expected,” Chief Financial Officer Laura Thompson said on the call. “The raw material cost benefit was less than we forecast.”
In Latin America, where sales to vehicle manufacturers fell 33 percent, Goodyear said it was hurt by lower vehicle production in Brazil and economic turmoil in Venezuela.
Total sales in the region fell 8 percent to $489 million.
Akron, Ohio-based Goodyear said overall tire volumes rose 3 percent in the quarter.
But revenue declined 5 percent to $4.66 billion, falling short of the average analyst estimate of $4.75 billion.
Net income available to the company’s shareholders increased about 18 percent to $213 million, or 76 cents per share, in the second quarter ended June 30.
Excluding items, Goodyear earned 80 cents per share, 1 cent above the average analyst estimate, according to Thomson Reuters I/B/E/S. (Reuters)