The Goodyear Tire & Rubber Co. has reported results for the fourth quarter and full-year of 2018.
Goodyear’s fourth quarter 2018 sales were $3.9 billion, down 5 percent from $4.1 billion a year ago, driven by unfavorable currency translation and lower volume, the company said. These effects were partially offset by improvements in price/mix.
Goodyear’s net income was $110 million, or 47 cents per share, in the fourth quarter of 2018 compared to a net loss of $96 million (39 cents per share) a year ago. Fourth quarter 2018 adjusted net income was $120 million (51 cents per share) compared to $245 million (99 cents per share) in 2017. Per share amounts are diluted.
“Our teams delivered several operational wins in 2018, including increasing our consumer replacement volume and building our OE pipeline by securing numerous fitments, notably on future electric vehicles,” said Richard Kramer, chairman, CEO and president. “These achievements are a testament to our product innovation, the strength of our distribution network and the value of the Goodyear brand.”
“Additionally, we achieved a number of strategic objectives throughout the year that strengthen our connected business model and move us closer to our customers, allowing us to improve our service levels and positioning us to be a leader in the changing mobility landscape. While many of the macro challenges we faced in 2018 have extended into 2019, we continue to build on what we accomplished last year and remain focused on delivering a higher level of earnings over the longer term,” Kramer said.
Goodyear’s 2018 sales were $15.5 billion, up 1 percent from the prior year, driven by improvements in price/mix, partially offset by unfavorable foreign currency translation. Tire unit volumes totaled 159.2 million, unchanged from the prior year. Replacement tire shipments were up 1 percent. Original equipment unit volume was down 4 percent.
Goodyear’s 2018 net income of $693 million, $2.89 per share, was up from $346 million, or $1.37 per share, in 2017. Goodyear’s net income in 2018 included a net gain after-tax and minority interest of $207 million resulting from the TireHub transaction, net of transaction costs. Goodyear’s net income in 2017 included net charges after minority interest of $292 million resulting from net discrete tax items. Full-year 2018 adjusted net income was $555 million, or $2.32 per share, down from $790 million, or $3.12 per share, a year ago.