The Goodyear Tire & Rubber Co. has reported results for the second quarter and first half of 2016.
“We delivered higher volumes and solid earnings in the quarter, achieving operating margins above 11 percent in all three business units,” said Richard Kramer, chairman and CEO. “Industry fundamentals remain favorable across many of our key markets and demand for our premium, high-value-added tires is strong. Our focus remains on the disciplined execution of our strategy and delivering on our financial targets.”
Goodyear’s second quarter 2016 sales were $3.9 billion, down from $4.2 billion a year ago, with the decrease largely attributable to the deconsolidation of the company’s subsidiary in Venezuela, the sale of the North American motorcycle tire business and unfavorable currency translation.
Goodyear’s second quarter 2016 net income was $202 million (75 cents per share), up from $192 million (70 cents per share) in the year-ago quarter. The company said this improvement was primarily due to a decrease in income tax expense. Excluding certain significant items, second quarter 2016 adjusted net income was $314 million ($1.16 per share), up from $229 million (84 cents per share) in 2015. Per share amounts are diluted.
Year to Date Results
Goodyear’s sales for the first six months of 2016 were $7.6 billion, down 8 percent from the 2015 period, reflecting unfavorable foreign currency translation of $225 million and the deconsolidation of Venezuela.
Goodyear’s year-to-date net income of $386 million ($1.43 per share) is down from $416 million ($1.52 per share) in 2015’s first half. The decrease was due to a one-time gain of $155 million ($99 million after-tax) on the recognition of deferred royalty income in 2015. All per share amounts are diluted.
As a part of its previously announced $1.1 billion share repurchase program, the company repurchased 3.6 million shares of its common stock for $100 million during the second quarter.
The company has reaffirmed its previously communicated 2016 financial targets.
