Tyremaker Goodyear India posts 40% jump in Q2 profit on subdued input costs
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Tyre manufacturer Goodyear India 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 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 earlier this month reported soaring second-quarter profit, while other peers MRF, JK Tyre and Industries and Apollo Tyres will report next month.
