Goodyear Tire & Rubber (NASDAQ:GT) reports sales dropped 41% in Q2, driven by lower industry volume and reduced sales from other tire-related businesses.
Tire unit volume down 45% to 20.4M for the quarter. Amongst, replacement tire shipments declined 39%, reflecting the impact of lower consumer demand, temporary store closings and wholesale and retail customers reducing inventory levels. Original equipment unit volume decreased 62%, driven by reduced vehicle production, including the effects of global auto manufacturers temporarily suspending vehicle production.
China consumer replacement volume increased year-over-year in both May and June.
Divided by segment sales, sales in America yearly declined 42% to $1.13B; in EMEA yearly decreased 41% to $676M and in Asia Pacific yearly down by 36% to $334M. Total segment operating margin was -20.1% vs. 6% year ago.
Suspension of dividend due to pandemic, will preserve ~$37M of cash on a quarterly basis and provide added financial flexibility in the near term.
GT +1.13% premarket. The stock has fallen 30% in the last 12 months.
