Tyremaker Goodyear India posts 40% jump in Q2 profit on subdued input costs
27/10/2023 10:49
BENGALURU, Oct 27 (Reuters) - Tyre manufacturer Goodyear
India GDYR.NS reported a 40% rise in second-quarter profit on
Friday as its raw material spends declined.
Standalone profit for the Indian unit of U.S.-based Goodyear
Tire and Rubber Co GT.O rose to 379.4 million rupees ($4.6
million) in the three months to Sept. 30 from 271 million rupees
a year earlier.
Rubber prices have contracted sequentially for the second
quarter in a row as production and consumption in China, which
consumes about 40% of global natural rubber, has been sluggish,
according to analysts.
Goodyear's total expenses fell more than 12%, led by nearly
a 30% decline in input costs, while revenue dropped about 10% to
6.90 billion rupees.
Poor monsoons have made commercial vehicles such as tractors
less affordable for India's rural population, hurting automakers
and auto-ancillary companies.
Goodyear has reported a profit climb in each of the last
five quarters.
Rival CEAT CEAT.NS earlier this month reported soaring
second-quarter profit, while other peers MRF MRF.NS , JK Tyre
and Industries JKIN.NS and Apollo Tyres APLO.NS will report
next month.
($1 = 83.2070 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Sohini
Goswami)
((varunvyas.hebbalalu@thomsonreuters.com;))