The Goodyear Tire & Rubber Company reported second quarter 2009 financial results and updated its progress on actions taken to address market and economic challenges around the world. The second quarter 2009 Goodyear net loss was $221 million (92 cents per share), compared with net income of $75 million (31 cents per share) in 2008’s second quarter and a net loss of $333 million ($1.38 per share) in 2009’s first quarter. All per share amounts are diluted. The company’s second quarter 2009 sales were $3.9 billion, down 25% from 2008’s record second quarter. Excluding the impact of currency translation, sales were down 18% from last year.
Goodyear made additional progress during the second quarter on its Four-Point Cost Savings Plan to achieve $2.5 billion in gross savings by the end of 2009. The company achieved $200 million in new savings during the second quarter, for a total of $345 million in the first half of 2009.
During the second quarter of 2009, the company reduced its global work force by approximately 1,700 positions. There were 3,800 reductions in the first quarter. The company’s full-year target was a reduction of 5,000 positions.
The company, in May, announced plans to eliminate approximately 6 million units of high-cost manufacturing capacity in France. In July, it announced plans to close a plant in the Philippines this year, eliminating another 2 million units. These actions are part of Goodyear’s strategy to reduce inefficient manufacturing capacity around the world by 15 million to 25 million units.