Goodyear India's first-quarter profit falls on weak auto demand
The net profit of U.S.-based Goodyear Tire's (GT.O), opens new tab Indian unit fell to 141.1 million rupees ($1.61 million) for the three months ended June 30, from 250.3 million rupees a year ago.
Goodyear India, which sells tyres, tubes and flaps, depends on auto sales for a large part of its revenue.
Total vehicle sales in the country fell 5.1% in the quarter ending June, compared to 16.4% growth in the same period last year, according to Society of Indian Automobile Manufacturers data.
The tyremaker's revenue from operations fell 5.1% to 6.56 billion rupees.
The company said that increasing adoption of larger rim sizes in vehicles is expected to drive robust sales in the replacement business this year in its latest annual report.
Total expenses fell 3% to 6.42 billion rupees, but not enough to boost the bottom line.
Rival CEAT (CEAT.NS), opens new tab reported a fall in June-quarter profit, while MRF (MRF.NS), opens new tab is yet to report its quarterly results.
Goodyear India's shares are flat on the day and rose 16.8% in the quarter ended June 30.
($1 = 87.6212 Indian rupees)
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