The impact of tariffs is highly uncertain!
Goodyear's operating profit fell 52.4% year-on-year to $159 million in the second quarter of this year, while revenue declined 2.3% to $4.465 billion, impacted by rising raw material costs and low-priced imports. In the first half of the year, Goodyear's net sales fell 4.3% to $8.718 billion, and segment operating profit fell 38.3% to $354 million. Goodyear expects market conditions to stabilize in the coming quarters and is optimistic about its manufacturing advantages in the United States.
■ Yokohama's revenue increased by 10.3% to ¥579.2 billion and operating profit increased by 13.8% to ¥62.1 billion in the first half of this year, both reaching record highs. The company raised its full-year revenue forecast to ¥1.235 trillion, an increase of ¥15 billion from its February forecast; its operating profit forecast was also raised to ¥153 billion.
■ Bridgestone's first-half financial report shows that despite a 3% year-on-year decline in global sales, its adjusted operating profit bucked the trend, rising 2% to ¥235 billion. This was primarily driven by strong performance in its North American premium tire and truck/bus replacement tire businesses (6% profit increase) and a surge in profits (266%) resulting from its sweeping restructuring in Europe. Adjusted operating profit in the Asia-Pacific, India, and China regions also saw a 5% increase. This contrasts sharply with the 58% profit plunge in the Latin American market, highlighting the uneven recovery across its regional businesses.
■ Bekaert stated in its second-quarter earnings report that demand in several end markets will weaken in the second half of 2025 due to a significant increase in US steel tariffs (from 25% to 50%) and an uncertain macroeconomic outlook. Although its rubber reinforcement business showed resilience in the first half of the year thanks to its global footprint and localization strategy (slightly lower sales volume by 1.5% year-on-year, EBITDA down 10% to €115 million), sales of steel cord tires in Europe and North America declined (down 3.9% and 5.2% respectively), and weak truck tire demand in all regions has led the group to be cautious about its outlook for the second half of the year.
■ Orion lowered its full-year 2025 profit forecast from $270-310 million to $270-290 million due to the influx of low-priced tires into key markets and macroeconomic uncertainty. The company's CEO pointed out that the main reason for the downward revision was the surge in tire imports in the North American market and the deteriorating market environment, with no recovery expected in the industrial end market this year. The company's first-half data showed that rubber carbon black sales volume increased by 4.6% to 372,000 tons, but net sales declined by 2.8% to $625 million due to the transmission effect of lower oil prices. Adjusted profit decreased by 14.2% to $89.7 million due to cost issues.
■ Apollo Tires' revenue for the first quarter of fiscal year 2025-2026 rose 4% year-on-year to 65.61 billion rupees due to strong growth in the Indian aftermarket, but operating profit declined by 4.5% to 8.68 billion rupees; net profit increased by 26.2% to 3.81 billion rupees. Management emphasized that the Indian business met targets, and the European business performed steadily during the off-season.