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UPDATE 1-Goodyear gains share of North American market

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CHICAGO, May 21 (Reuters) - Struggling tire maker Goodyear Tire & Rubber Co. said on Wednesday its North American tire unit gained share in a key market in April, but the unit's operating income fell on higher costs and lower shipments to automakers.

The Akron, Ohio-based company said its share of the North American consumer replacement tire market rose one-half percentage point and its shipments rose from a year ago. Industry-wide shipments of consumer replacement tires fell 1 percent in April.

Most of the market share gain was fueled by shipments of its Goodyear-brand tires, it said in a release. The company also makes Dunlop and Kelly tires.

One of the world's largest tire makers, Goodyear has lost money for the past two years due to problems at its North American unit.

It said North American operating income dropped in April as lower transportation costs were offset by higher raw-material and other manufacturing costs as well as lower shipments to automakers.

Goodyear lost share early last year in North American consumer replacement tires, one of its more profitable products, and is trying to regain it as part of a turnaround plan.

The company recently refinanced most of its bank loans, told investors it plans to cut $1.0 billion to $1.5 billion in costs and asked its labor unions for concessions.

Goodyear also has stopped paying dividends and matching employee 401(k) contributions in order to save money and is trying to sell its chemicals unit. It recently delisted from the Chicago, Pacific and Amsterdam stock exchanges.

Shares of Goodyear were down 8 cents at $6.41 on the New York Stock Exchange. The stock has risen from an all-time low of $3.45 hit in February, before the loan restructuring.