GOODYEAR REPORTS SECOND QUARTER, FIRST HALF RESULTS

Record core segment operating income of $531 million for second quarter and $950 million for first half

Americas second quarter income of $291 million, 13.9% operating marginEurope, Middle East and Africa second quarter income of $148 million, 11.7% operating margin

Record Asia Pacific second quarter income of $92 million, 17.4% operating margin

Completed $100 million in share repurchases in second quarter

Company reaffirms 2016 financial targets

The Goodyear Tire & Rubber Company recently 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 J. Kramer, chairman and chief executive officer. "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.

Tire unit volumes totaled 41.5 million, up 2 percent from 2015, driven by growth in the Asia Pacific and Europe, Middle East and Africa regions. Replacement tire shipments were up 4 percent. Original equipment unit volume was down 4 percent.

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 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.

Tire unit volumes totaled 83.0 million, up 2 percent from 2015, driven by growth in the Asia Pacific region, primarily in Japan and China. Replacement tire shipments were up 3 percent. Original equipment unit volume was down 1 percent. Excluding the impact of the deconsolidation of Venezuela, unit volumes increased 3 percent.

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.

The company reported first half segment operating income of $950 million in 2016, up from $938 million a year ago. The increase was driven by favorable price/mix net of raw materials and the impact of higher volume. These improvements were partially offset by the deconsolidation of Venezuela. Core segment operating income, which excludes Venezuela, was $880 million in the 2015 first half.

Asia Pacific's second quarter 2016 sales increased 8 percent from last year to $528 million. Sales reflect a 21 percent increase in tire unit volume, primarily due to growth in Japan and China. This improvement was partially offset by unfavorable foreign currency translation. Replacement tire shipments were up 38 percent. Original equipment unit volume was up 1 percent.

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