By Denna Bowman
Goodyear tyres second quarter growth demonstrates that the company “pulled the right levers during the economic downturn” and is on the right road moving forward.
Richard Kramer, president and chief executive officer of the US tyres manufacturer, said: “From an operational standpoint, our performance was driven by our ability to capture the benefits of recovering industry demand in terms of both sales volume and factory utilisation.”
Kramer notes that in its North American business, Goodyear continued to focus on innovation, price mix, productivity and improving manufacturing efficiency, which were all disrupted by the recent recession.
“Our results reflect progress in these areas and give us confidence in our ability to achieve our 5% segment operating income margin target. Certainly we have more actions planned, but we absolutely are on the right path.”
Goodyear reported a 15% increase in sales from last year on 10% unit growth and announced that tyre sales grew in all four business units, reflecting global recovery.
Kramer said: “We are very pleased with our strong performance in the second quarter and first half of the year.
“Our businesses continue to perform better than a year ago as they capture the benefits of recovering industry demand, strong new product performance and solid productivity improvements. We are clearly on the right path as our strategies position us to grow profitably as markets continue to improve.”