According to a news article from Reuters, the Goodyear tire company posted a loss for the quarter, but did much better than the industry thought it would. Their loss was much smaller than analysts had predicted according to the article.
The loss equated to this, from the article by David Bailey:
“The net loss amounted to $221 million, or 92 cents per share, for the second quarter, compared with a profit of $75 million, or 31 cents per share, a year earlier.”
The tire companies have been feeling the pressure because of the economic downturn and the slowing United States auto market. And Goodyear is the largest United States Tire maker. The industry is also struggling because consumers are holding off on purchasing replacement tires for their vehicles.
The tire company has also been forced to do layoffs this year. The article states:
“Goodyear cut 5,500 jobs in the first half of the year, ahead of its plan to cut 5,000 for the year. The Akron, Ohio-based automaker had 75,000 employees worldwide at the end of 2008.”
The company did post an operating income growth in its Asian Pacific unit.
At least there has been improvement from the first quarter. The news however is still bittersweet and we will see what next quarter brings for the American tire industry.