Goodyear reporting the market is tightening with net income for the first half of the year of $313 million dollars on sales of $7.4 billion, down two percent from $386 million the first half of 2016. Overall tire volumes were down seven percent. CEO Richard Kramer says there's a weakening in the original equipment and consumer replacement tire markets despite overall strength in the industry, notably lower gasoline prices.

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(Goodyear Tire and Rubber) Goodyear Reports Second Quarter, First Half 2017 Results

- Second quarter results in line with guidance
- Goodyear net income of $147 million for second quarter, $313 million for first half
- Segment operating income of $361 million for second quarter, $746 million for first half
- Germany plant closure complete, $45 million in annual savings expected
- Company updates 2017 segment operating income guidance

AKRON, Ohio, July 28, 2017 – The Goodyear Tire & Rubber Company today reported results for the second quarter and first half of 2017. "Our second quarter results reflect the impact of volatile raw material costs and an increasingly challenging competitive environment, particularly in the United States and Europe," said Richard J. Kramer, chairman and chief executive officer. "In addition to higher raw material costs, we have seen a weakening in OE and consumer replacement demand across many of our key markets during the first half, despite strong underlying industry fundamentals," he said.

"The combination of these factors has led to a highly unusual first half environment, particularly given the favorable trends in miles driven, gasoline prices and unemployment that are generally supportive of our industry," Kramer added. "In light of the challenging global marketplace in the first half of 2017, we have lowered our segment operating income expectations for the remainder of the year," he said. "Despite the near-term challenges, I am no less optimistic about our ability to drive our strategic priorities against the favorable industry megatrends." Goodyear's second quarter 2017 sales were $3.7 billion, down from $3.9 billion a year ago, with the decrease largely attributable to lower tire unit volume, partially offset by improved price/mix.

Tire unit volumes totaled 37.4 million, down 10 percent from 2016, primarily in Europe, Middle East and Africa and the Americas. Replacement tire shipments were down 11 percent. Original equipment unit volume was down 8 percent. Goodyear's second quarter 2017 net income was $147 million (58 cents per share), down from $202 million (75 cents per share) in the year-ago quarter. Second quarter 2017 adjusted net income was $177 million (70 cents per share), down from $314 million ($1.16 per share) in 2016. Per share amounts are diluted.

The company reported second quarter segment operating income of $361 million in 2017, down from $531 million a year ago. The decrease reflects higher raw material costs and the impact of lower volume, which were partially offset by improved price/mix and cost savings.

Year-to-Date Results

Goodyear's sales for the first six months of 2017 were $7.4 billion, down 2 percent from the 2016 period, reflecting lower tire unit volume, partially offset by improved price/mix. Tire unit volumes totaled 77.4 million, down 7 percent from 2016. Replacement tire shipments were down 6 percent, reflecting increased competition. Original equipment unit volume was down 8 percent, driven by lower auto production.

Goodyear's year-to-date net income of $313 million ($1.23 per share) is down from $386 million ($1.43 per share) in 2016's first half. All per share amounts are diluted.

The company reported first half segment operating income of $746 million in 2017, down from $950 million a year ago. The decrease was driven by higher raw material costs and the impact of lower volume, partially offset by improved price/mix and cost savings.