Goodyear’s 2Q Profit Improves as Sales Reach Record

Goodyear Tire & Rubber Co. said its second-quarter profit as sales jumped 24% to a quarterly record.

The company earned $40 million, or 16 cents a share, from $28 million, or 11 cents, a year ago. Sales rose to $5.6 billion, from $4.5 billion.

North American sales increased 18% to $2.4 billion, a second-quarter record, and reflected stronger sales of high-end tires. Revenue per tire was up 20%.

Total tire volumes totaled 42.9 million, down 2% from 2010, but its higher sales reflected stronger pricing, which drove revenue per tire up 18%, Goodyear said.

Goodyear projected North American commercial tire replacement at between 10% and 15% this year, and commercial original equipment tire demand to rise 40% to 50%.

The company projected raw material costs for the rest of 2011 will increase jump 30% from last year.