The Goodyear Tire & Rubber Company (NASDAQ:GT) Q2 2019 Earnings Conference Call - Final Transcript

Jul 26, 2019 • 09:30 am ET


The Goodyear Tire & Rubber Company (NASDAQ:GT) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Keith, and I'll be your conference operator today. At this time, I would like to welcome everyone to Goodyear's Second Quarter 2019 Earnings Call. [Operator Instructions]

I will now hand the program over to Nick Mitchell, Senior Director, Investor Relations.

Nicholas Mitchell

Thank you, Keith, and thank you, everyone, for joining us for Goodyear's Second Quarter 2019 Earnings Call. I'm joined here today by Richard Kramer, Chairman, Chief Executive Officer; and Darren Wells, Executive Vice President and Chief Financial Officer. The supporting slide presentation for today's call can be found on our website at, and a replay of this call will be available later today.

Replay instructions were included in our earnings release issued earlier this morning. If I could now draw your attention to the safe harbor statement on Slide two. I would like to remind participants on today's call that our presentation includes some forward-looking statements about Goodyear's future performance. Actual results could differ materially from those suggested by our comments today.

The most significant factors that could affect future results are outlined in Goodyear's filings with the SEC and in our earnings release. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Our financial results are presented on a GAAP basis, and in some cases, a non-GAAP basis. The non-GAAP financial measures discussed on the call are reconciled to the U.S. GAAP equivalent as part of our -- of the appendix to the slide presentation.

And with that, I'll now turn the call over to Rich.

Richard J. Kramer

Great. Thank you, Nick, and good morning, everyone. During today's call, I'll share some highlights of our second quarter operating performance and discuss the progress we are making with several of our initiatives. I'll also take a few minutes to highlight the recognition that our teams and products are earning around the globe. Darren will follow with a review of our financial performance and an update on the steps we're taking to mitigate the impact of the raw material cycle and the global OE slowdown.

He will conclude by offering some insights into how we're thinking about our business going forward. Our U.S. business continued to perform well in the period as we maintained the momentum from recent quarters. In all, our U.S. consumer replacement volume increased 4%. This growth was well balanced as shipments increased across all our major distribution channels, including retail, wholesale and mass merchants. I am pleased to say that we accomplished this while increasing our revenue per tire relative to last year, which is a testament to the strength of our brand and our product offering.

We continue to excel in the all-important, high-margin premium segment of the market. Shipments of large rim diameter tires increased by 9%. This growth was more than double the industry and came on top of a strong performance in the previous year. We benefited from the increasing premium supply aided by