Goodyear Q4 sales down to $3.7 billionStaff Writer | February 8, 2017
The Goodyear Tire & Rubber company reported results for the fourth quarter and full-year of 2016.
Goodyear Full-year adjusted net income was $1.1 billion
Tire unit volumes totaled 41.1 million, down 2 percent from 2015. Replacement tire shipments were down 1 percent.
Original equipment unit volume was down 7 percent, driven in part due to weakness in the U.S. commercial truck market.
Goodyear’s fourth quarter 2016 net income was $561 million ($2.14 per share), compared to a net loss of $380 million ($1.42 per share) in the year-ago quarter. The prior year was negatively impacted by a charge to deconsolidate Venezuela.
Fourth quarter 2016 adjusted net income was $249 million (95 cents per share), compared to $257 million (93 cents per share) in 2015. Per share amounts are diluted.
The company reported fourth quarter segment operating income of $479 million in 2016, compared to $480 million a year ago.
Segment operating income in 2016 benefited from net cost savings, which was more than offset by lower price/mix net of raw material costs, lower volume and the deconsolidation of Venezuela.
Core segment operating income, which excludes Venezuela, was $458 million in the year-ago quarter.
Goodyear’s 2016 sales were $15.2 billion, down 8 percent from 2015, primarily reflecting the deconsolidation of Venezuela and unfavorable foreign currency translation.
Tire unit volumes totaled 166.1 million, essentially unchanged from 2015. Replacement tire shipments were up 2 percent. Original equipment unit volume was down 4 percent.
Excluding the impact of the deconsolidation of Venezuela, unit volumes increased 1 percent.
Goodyear’s 2016 net income of $1.3 billion ($4.74 per share) is up from $307 million ($1.12 per share) in 2015. The increase was driven by a charge in 2015 to deconsolidate Venezuela and a decrease in 2016 income tax expense due to the release of foreign tax valuation allowances.
Full-year adjusted net income was $1.1 billion ($4.00 per share), up from $906 million ($3.32 per share) in 2015. Per share amounts are diluted.
The company reported 2016 segment operating income of $2.0 billion, down 2 percent from a year ago.
The decrease was more than explained by the deconsolidation of Venezuela. Core segment operating income, which excludes Venezuela, was $1.9 billion in 2015. ■