Goodyear reaffirms 2016 targets with latest financial results

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Goodyear has reported its financial 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% in all three business units,” said Richard J 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.”

The company’s second quarter 2016 sales were US$3.9bn, down from US$4.2bn 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% from 2015, driven by growth in the Asia-Pacific and Europe, Middle East and Africa regions. Replacement tire shipments were up 4%. Original equipment unit volume was down 4%.

Goodyear’s second quarter 2016 net income was US$202m (US$0.70 per share), up from US$192m (US$0.70 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 US$314m (US$1.16 per share), up from US$229m (US$0.84 per share) in 2015. Per share amounts are diluted.

 

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Rachel's career in journalism began around five years ago when she started working for UKi Media & Events, having recently graduated from Coventry University where she studied the subject. Her favourite aspect of the job is interviewing industry experts, including researchers, scientists, engineers and technicians, and learning more about the ground-breaking technologies and innovations that are shaping the future of the automotive and tire industries.

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