The Goodyear Tire & Rubber Co. has reported record results for the third quarter of 2015.
“We delivered outstanding earnings growth in the quarter and segment operating margin of more than 14 percent, overcoming macroeconomic challenges in some of our key international markets,” said Richard Kramer, chairman and CEO. “Our strong momentum in North America continues. The business grew its segment operating margin to more than 16 percent and achieved a 54 percent year-over-year increase in earnings driven by strong demand for our high-value-added products.”
Kramer added, “Our third quarter results demonstrate continued sustainable earnings growth and our sharp focus on disciplined execution of our strategy in both strong and challenging markets. With our strong year-to-date performance, we now see full-year segment operating income tracking to $2 billion, which would be more than double what we achieved just five years ago.”
Goodyear’s third quarter 2015 sales were $4.2 billion, down from $4.7 billion a year ago, with the decrease largely attributable to unfavorable foreign currency translation of $430 million.
Tire unit volumes totaled 42.5 million for the third quarter of 2015, up 1 percent from last year. Original equipment unit volume was up 4 percent. Replacement tire shipments were flat.
The company reported third quarter segment operating income of $599 million in 2015, up 15 percent from a year ago and a record for any quarter. The company said the increase was driven by favorable price/mix net of raw materials, partially offset by unfavorable foreign currency translation.
Goodyear’s third quarter 2015 net income was $271 million (99 cents per share). Adjusted net income was also $271 million (99 cents per share). Per share amounts are diluted.
Goodyear’s third quarter 2014 net income was $161 million (58 cents per share). Excluding certain significant items, adjusted net income was $242 million (87 cents per share). Per share amounts are diluted.
Year to Date
Goodyear’s sales for the first nine months of 2015 were $12.4 billion, down 10 percent from the 2014 period, reflecting unfavorable foreign currency translation of $1.2 billion. Tire unit volumes totaled 124.1 million for the first nine months of 2015, up 1 percent from 2014. Original equipment unit volume was up 4 percent. Replacement tire shipments were flat.
The company’s year-to-date segment operating income of $1.5 billion was up 14 percent from last year. Compared to 2014, year-to-date segment operating income reflects the benefits of favorable price/mix net of raw materials and cost reduction actions, which exceeded the impact of unfavorable foreign currency translation and inflation.
Goodyear’s year-to-date net income available to common shareholders of $687 million ($2.51 per share) is up from $316 million ($1.15 per share) in 2014’s first nine months. Excluding certain significant items, 2015 adjusted net income was $649 million ($2.39per share). All per share amounts are diluted.
