Will Goodyear Tire & Rubber Company (NASDAQ:GT) have a good year?

Posted by Kristi Scott July 31, 2013 0 Comment 788 views

Goodyear Tire & Rubber Co. (Nasdaq: GT) has reported its record Q2 earnings despite the fact that its sales have been lower than what they were in 2012. The tire maker said that it’s Q2 net income more than doubled and rose to $181M or 67 cents /share from the $85M or 33 cents/share that it stood at, a year earlier. Sales dropped from $5.2B to $4.8B.

GT’s chairman and CEO, Richard Kramer said that the company’s outstanding Q2 results clearly indicate that they have been successful in executing their strategies in a disciplined manner. They have integrated and managed all their operations in a very efficient way. He said that the company is leveraging the increased integration as well as their product innovation to boost their earnings right through the cycle.

The right leverage

He added that GT has been able to achieve notably higher earnings and a record operating income in the Asia Pacific and North American regions. He said that the objective is to spotlight all the targeted market-segments where the company will be able to capture the value of their brands. This will help them prepare themselves to leverage the market recovery, whenever it takes place.

All 4 GT businesses have achieved much higher operating-incomes in the Q2 in comparison to the same period a year ago. Three businesses also posted much higher tire-unit volumes than 2012. With reference to the company’s performance in Europe, Richard Kramer said that Goodyear Tire & Rubber Co. (Nasdaq: GT) is now seeing signs of the volumes stabilizing and is tasting success in the summer tire-market.

The company

GT is a tire manufacturing company. Along with its subsidiaries and allies is involved in developing, manufacturing, marketing as well as distributing tires that are used in a range of applications. It also produces and markets rubber-based chemicals for numerous applications.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

View all post by Kristi Scott Visit author's website

Write Your Comment