Goodyear's second quarter 2013 revenue record
July 30, 2013, Shanghai, China – Goodyear Tire & Rubber Company recently released its second-quarter earnings report for 2013, which recorded a record operating income for the quarter.
Richard Claymer, Goodyear’s president and chief executive officer, said: “Our excellent second quarter revenue reflects Goodyear’s strict implementation of corporate strategy across the globe, and at the same time, the efficiency and reliability of our operations. And the degree of integration has also been improved. We use a virtuous cycle of efficient integration and product innovation to achieve sustainable revenue growth."
He said: “We have significantly increased revenue and set a new record for operating revenue in North America and the Asia Pacific region. We will continue to target high-value-added target market segments, seize the right moments, and prepare for the recovery of the market. Good preparation."
In the second quarter, Goodyear’s all four major business areas achieved high levels of operating income compared to the same period last year. Three of the business areas achieved year-on-year growth in tire sales.
“The outstanding performance in the first half of the year has strengthened our confidence in the global outlook for the full-year revenue. We expect this value to reach approximately US$1.5 billion, which is close to the previously announced high level of US$1.4 to US$1.5 billion, and will set up a company. The history of the new high." Kramer said.
Goodyear’s second-year sales in 2013 were US$4.9 billion, a decrease of US$300 million compared to the same period last year. Among which, sales increased by US$35 million in sales of tires, and sales of other tire-related businesses, particularly sales of third-party chemicals in North America, decreased by US$131 million; product pricing and product portfolio effects The drop resulted in a decrease of $75 million in sales; adverse exchange rate effects led to a $60 million decrease in sales this quarter, which fully offset the $35 million in sales growth resulting from the increase in tire sales. Tire sales totaled 39.5 million in the quarter, which is a 1% increase from the same period in 2012.
Goodyear’s operating revenue for the second quarter of 2013 was US$428 million, an increase of 27% compared to the same period last year. Among them, the favorable product pricing and product mix effect brought by the decrease in raw material costs contributed 92 million U.S. dollars in revenue this quarter, the cost saving measures in response to inflation contributed 38 million U.S. dollars, and the increase in tire sales contributed 11 million U.S. dollars. The U.S. dollar income partially offset the 47 million U.S. dollars in revenue reduction caused by the management costs caused by the reduction in tire production, and the reduction in income caused by adverse exchange rate effects.
Asia Pacific Business
Goodyear Asia Pacific tires sales in the second quarter of 2013 were US$585 million, a decrease of US$15 million compared to the same period last year, of which 5% of sales growth was offset by a reduction in product pricing and product mix, and Decline in sales of other tire-related businesses led to a decrease of US$12 million in sales during the quarter. Unfavorable exchange rate effects caused sales to decrease by US$10 million in sales this quarter. Compared with the same period of last year, sales in the original market increased by 4%, and sales in the replacement market increased by 6%.
In the second quarter of 2013, the Asia Pacific region’s operating income was US$91 million, which represented an increase of 28% compared to the same period of last year and reached a record high. The raw material product pricing and product mix effect resulting from the reduction in raw material costs contributed US$11 million in revenue growth, the reduction in production plant startup costs contributed US$9 million, and the increase in tire sales contributed US$7 million in revenue. The increase completely offset the increase in conversion costs and the decrease in revenue due to unfavorable exchange rate effects.
First half performance
The company's first-half revenue reached 730 million U.S. dollars, an increase of 16% compared with the same period of last year, and set a new record. Compared with last year, the year-to-date operating revenue reflects the fact that raw material product pricing and product mix effects resulting from declining raw material costs contributed US$250 million in revenue growth, and contributed 73 million US dollars in cost-saving measures against inflation. The increase in revenue offsets the decrease in revenue due to the increase in conversion costs, which is mainly caused by the reduction in production costs caused by the reduction in production volume, and the reduction in revenue due to the reduction in tire sales and the adverse exchange rate impact.
Outlook for the whole year of 2013
Goodyear expects that the sales volume of tires in 2013 will be basically the same as in 2012.
Kramer said: “We expect sales growth to occur in the second half of 2013 compared to the same period of last year. Continuous improvement in emerging markets and slow but steady recovery in mature markets will contribute 3% to 5% of sales in the third quarter. increase."
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