The Goodyear Tire & Rubber Company has reported results for the second quarter and first half of 2020.
Goodyear Mitigate COVID-19 Crisis with Decisive Actions
“Although our first half results were greatly affected by difficult industry conditions as a result of the ongoing COVID-19 pandemic, the decisive actions we took to safeguard our business helped mitigate the impact on our results,” said Richard J. Kramer, chairman, chief executive officer and president.
“While we are encouraged to see industry demand gradually recovering in most major markets, our plans for the second half consider the challenges and uncertainties that remain. We continue to focus on the wellbeing of our associates, servicing our customers and supporting our brands while appropriately managing our costs and working capital,” added Kramer.
From an Asia Pacific point of view, it's second quarter 2020 sales decreased 36% to $334 million, reflecting lower volume, partially offset by improvements in price/mix. Tyre unit volume declined 36%. Original equipment unit volume declined 50%, driven by declines in India and China. Replacement tyre shipments decreased 26%, driven by lower industry demand.
Second quarter 2020 segment operating loss of $34 million was down $75 million from the prior year’s quarter. The decline reflects lower unit volume and reduced factory utilisation, reflecting lower sales and reductions in inventory. These factors were partially offset by lower SAG, driven by reductions in advertising and payroll expenses.