The Goodyear Tire & Rubber Co. has reported record results for the first quarter of 2016.
“We are very pleased with our strong first quarter performance,” said Richard Kramer, chairman, CEO and president. “Demand for our premium-branded, high-value-added products is robust and our product mix continues to grow richer, driving margin expansion.”
The company’s first quarter segment operating margin of 11.4 percent was up from 9.6 percent a year ago.
“Our results are a reflection of our ability to successfully execute on our strategy,” added Kramer. “We will continue to focus on profitable growth in market segments where our innovation, brand and operational excellence capabilities provide a competitive advantage.”
Goodyear’s first quarter 2016 sales were $3.7 billion, down from $4 billion a year ago, largely due to unfavorable foreign currency translation of $141 million and the deconsolidation of the company’s subsidiary in Venezuela.
Goodyear’s first quarter 2016 net income was $184 million, or 68 cents per share. Excluding certain significant items, adjusted net income was $195 million or 72 cents per share. Per share amounts are diluted.
Goodyear’s first quarter 2015 net income was $224 million, or 82 cents per share. Net income included a non-cash, one-time gain of $155 million ($99 million after taxes and minority interest) for the recognition of deferred royalty income resulting from the termination of a licensing agreement associated with the company’s former Engineered Products business. Excluding certain significant items, adjusted net income was $148 million or 54 cents per share. Per share amounts are diluted.
