Goodyear reports lower sales for second quarter

Akron, OH – Goodyear reports that second quarter sales decreased 6.6% compared to prior year, driven by lower volume and the impact of foreign exchange, partly offset by strong price/mix. Revenue per tire increased 6% excluding the impact of foreign exchange. Tire unit volume in the quarter totaled 40.8 million units, down 10.7% from prior year levels. The stronger U.S. dollar reduced sales by approximately 2%.

Goodyear’s second quarter results were marked by weak demand in Americas and EMEA, given consumer replacement channel destocking. As context, their second quarter volume was well below normalized levels, with unit volume 16% below 2019. Additionally, the U.S. and European commercial replacement industry weakened considerably in the quarter as freight ton miles and utilization drove channel destocking, resulting in lower
overall mix in our business.

Based on first half trends, Goodyear has downgraded their industry outlook in the second half for both consumer replacement and commercial replacement. At the same time, they expect lower costs in the second half than they had previously shared. Goodyear continues to expect to achieve segment operating margin in the second half that should bring them much closer to their near-term target of 8%. Additionally, Goodyear expects two of their three business units–Americas and Asia Pacific—to record meaningful improvements in margin and exit the year with solid earnings heading into 2024.