Tyre maker faces headwinds from low-cost imports but exceeds transformation goals

Goodyear Tire & Rubber reported an adjusted net loss for the second quarter, citing challenges from global trade shifts and a surge of low-cost imports across key markets. However, asset sales helped boost overall revenue.

The Akron, Ohio-based tyre maker posted an adjusted net loss of USD 48 million, or 17 cents per share, compared with adjusted net income of USD 48 million, or 17 cents per share, in the same period last year.

Net sales for the quarter totalled USD 4.5 billion with tyre unit volumes of 37.9 million. The company reported net income of USD 254 million, or 87 cents per share, compared with USD 79 million, or 28 cents per share, a year earlier, boosted by significant one-off gains.

“The second quarter proved challenging in both our consumer and commercial businesses, driven by industry disruption stemming from shifts in global trade - including a surge of low-cost imports across our key markets,” said Chief Executive Mark Stewart.

The results included a pre-tax gain of USD 385 million from the sale of the Dunlop brand to Sumitomo Rubber Industries in May, alongside rationalisation charges of USD 59 million and USD 5 million in transformation costs.

Segment operating income fell to USD 159 million from USD 334 million a year ago. After adjusting for the February sale of its off-the-road tyre business, segment operating income declined by USD 152 million, primarily due to higher raw material costs.

The company’s Americas division, its largest segment, saw net sales drop 1.3 percent to USD 2.7 billion with tyre unit volumes down 2.6 percent. Segment operating income fell to USD 141 million from USD 241 million the previous year, hurt by higher raw material costs and inflation.

In Europe, Middle East and Africa, the company posted a segment operating loss of USD 25 million compared with income of USD 30 million last year, despite net sales rising 5.1 percent to USD 1.3 billion.

Asia Pacific recorded the steepest decline, with net sales falling 22.7 percent to USD 459 million and tyre unit volumes dropping 15.6 percent, affected by the OTR business divestiture and actions to reduce lower-margin business outside China.

Stewart expressed confidence about prospects, stating: “We expect conditions to stabilise in the coming quarters, and we see a clear opportunity ahead as we capitalise on our strong U.S. manufacturing footprint.”

The company continues to execute its “Goodyear Forward” transformation plan, reporting USD 195 million in benefits during the quarter. The programme has generated USD 905 million from the February sale of its OTR business to Yokohama Rubber and USD 735 million from the Dunlop brand sale.

Goodyear has also agreed to sell the majority of its chemical business to an affiliate of Gemspring Capital Management for an undisclosed sum, with the transaction expected to close in late 2025.

“We continue to expect to exceed the original goals for Goodyear Forward both in terms of cost savings and proceeds from asset sales,” Stewart added.

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Steelastic LLC, part of the HEICO Companies, has officially announced a new strategic partnership with IBP for the territories of India, Sri Lanka and Bangladesh. In this capacity, the company has welcomed John Powath as its official agent for these regions. Powath is a respected leader within the tyre industry, bringing a wealth of experience from his roles as a Partner at IBP and as a Co-Founder of Automoto. He is also recognised as an active contributor to global tyre and automotive industry events.

Operationally, Steelastic’s Business Development Manager Hemant Agrawal will work in close coordination with the IBP team. Their collective focus will be on strengthening the support infrastructure for customers and driving the growth of Steelastic’s business footprint across South Asia. The company has expressed considerable optimism regarding this collaboration and believes it will unlock substantial new opportunities for its valued customer base in the region, enhancing product access and technical service.

The company statement read: “We welcome John Powath as Steelastic’s official agent in these regions. Powath is a respected leader in the tyre industry, Partner at IBP, & Co-Founder at Automoto, as well as an active contributor to global tyre and automotive events. Moving forward, Steelastic Business Development Manager, Hemant Agrawal, along with the IBP team, will work closely to strengthen customer support and grow Steelastic’s business across South Asia. We are excited about this collaboration and the opportunities it will bring for our valued customers.”

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The Bridgestone Potenza Sport has been declared the definitive winner in EVO's 2025 Tyre Test, decisively outperforming eight rival products. Evaluated on a high-powered BMW 135i xDrive with 302 bhp in the size 235/35 R19, the tyre delivered six class-leading results.

The tyre’s dominance was particularly evident in wet conditions, where it achieved the shortest braking distance and top scores for cornering and aquaplaning resistance. The tyre also excelled in dry performance, recording the fastest lap time and a strong third-place finish in dry braking. Test editors praised it as an exceptional and emphatic winner, noting its superb on-road feel and capability in all conditions.

This assessment is further supported by independent TÜV SÜD testing, which confirms the Potenza Sport's superior dry braking, cornering and stability against other premium tyres. Its wet performance is also officially recognised with a top EU 'A' wet grip rating and leading results in wet cornering and handling, solidifying its status as a top-tier ultra-high-performance tyre.

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Michelin has announced the full deployment of its proprietary TreadEye technology across the Michelin Retread Technologies franchise network in the United States. TreadEye is a technology developed to enhance the retread process and deliver value to fleets.

The company stated that TreadEye is a tread depth assessment tool that helps fleets maximise their tyre investment. The system collects 1,200 measurement points accurately and consistently, providing insights into tread wear and casing condition.

Key benefits of the TreadEye technology include:

• Identification of pull points by fleet location.
• Maximisation of rubber on the road by helping to avoid early pulls.
• Helps in prevention of casing damage and helps reduce DOT violations.
• Helps reduce downtime from late pulls.
• Improved efficiency in the tyre removal process, directly affecting a fleet’s bottom line.

Nate Kirian, Vice-President of Sales and Distribution, Commercial Business Lines for Michelin North America, Inc, said, “TreadEye is a game-changer for our retread operations and for the fleets we serve. It’s a powerful example of how Michelin continues to innovate in ways that directly benefit our customers.”

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In a significant move for UK road safety, TyreSafe, the nation's dedicated tyre safety charity, has formed a landmark partnership with the National Tyre Distributors Association (NTDA). This alliance represents a powerful consolidation of industry voices, uniting manufacturers, distributors and safety advocates behind the common goals of enhancing road safety, elevating professional standards and promoting positive behavioural change among motorists.

This formal collaboration brings together two central organisations within the automotive aftercare sector. By combining their strategic objectives, they aim to amplify crucial safety messages and deepen engagement with the frontline professionals – retailers, fitters and technicians – who directly influence driver habits. The NTDA, a leading trade association founded in 1930, represents over 300 companies operating more than 2,000 retail outlets across the country, from major national chains to independent family-run businesses.

The partnership will facilitate joint public campaigns, shared research projects and the development of educational resources designed to help both consumers and industry professionals better understand the critical importance of correct tyre maintenance and timely replacement. This collaborative effort is bolstered by compelling new data from the NTDA's recent TyreCheck 2025 study, which examined over 58,000 vehicles. The research revealed a concerning increase in the number of tyres nearing the legal minimum tread depth, underscoring an urgent need for renewed public education on what constitutes a truly roadworthy and safe tyre. Ultimately, this unified initiative marks a new era of cooperation, driven by a shared vision to eliminate the dangers posed by illegal and defective tyres on Britain's roads.

Stuart Lovatt, TyreSafe Chair, said, “This partnership represents a pivotal moment for the tyre industry. TyreSafe and the NTDA share a common goal – to make tyre safety a central part of the national road safety conversation. By combining TyreSafe’s public awareness and behavioural insight with the NTDA’s trade expertise and nationwide reach, we are uniting every part of the tyre supply chain behind one clear message – safe tyres save lives. Together, we can make that message stronger, more consistent and more effective than ever before.”

Ian Andrew, CEO, NTDA, said, “The NTDA has long been committed to raising standards across the tyre trade and promoting the professionalism of our members. Working collaboratively with TyreSafe allows us to take this commitment to the next level – ensuring that retailers, fitters and technicians play a central role in improving driver understanding and road safety outcomes. This partnership will help unify our industry around shared goals, driving both cultural and practical change.”

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