Goodyear Reports Record First Quarter Earnings

• North America sets first quarter earnings record of $198 million, up 27%
• First quarter tire unit volumes increase 2%, growth in 3 of 4 business units
• Company reaffirms 2015 financial targets

The Goodyear Tire & Rubber Company has reported record earnings for the first quarter of 2015.

“Our strong first quarter provides solid momentum as we start 2015,” said Richard J. Kramer, chairman and chief executive officer. “We overcame significant foreign currency headwinds and delivered record earnings led by North America, which achieved its fourth consecutive quarter of segment operating income margin of more than 10 percent,” he added.

“Our volume growth was driven by market demand for our award-winning high-value-added products and gives us increased confidence in our outlook for the remainder of the year,” Kramer said.

Goodyear’s first quarter 2015 sales were $4.0 billion, down from $4.5 billion a year ago, with the decrease largely attributable to unfavorable foreign currency translation of $393 million.

Tire unit volumes totaled 40.8 million for the first quarter of 2015, up 2 percent from last year. Original equipment unit volume was up 3 percent. Replacement tire shipments were up 2 percent.

The company reported record first quarter segment operating income of $391 million in 2015, up from $373 million a year ago. The increase in segment operating income was driven by higher sales volume, a net benefit from changes in price/mix and raw material costs and improvements in other cost items. These improvements were partially offset by unfavorable foreign currency translation.

Goodyear’s first quarter 2015 net income available to common shareholders was $224 million (82 cents per share). Net income includes 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 (54 cents per share). Per share amounts are diluted.

While Asia Pacific’s first quarter tire unit volumes increased 9 percent, total sales decreased 9 percent as the gain in volume was more than offset by reduced price/mix and unfavorable foreign currency translation. Replacement tire shipments were flat. Original equipment unit volume was up 20 percent, primarily in China and India.

First quarter 2015 segment operating income of $67 million was up 3 percent from last year, primarily driven by higher volume.

First quarter segment operating income of $53 million was up 26 percent from a year ago primarily due to improved price/mix and higher tire unit volume, partially offset by higher overall inflation costs and unfavorable foreign currency translation. Operating income in Venezuela was $22 million, up from 2014’s first quarter loss, when a labor disruption and currency devaluation adversely affected earnings. The company previously indicated that it expected no earnings contribution from its Venezuelan operations for the full year of 2015.

• ข่าว The Goodyear Tire