Goodyear reports record financial results for Q1 of 2016

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Goodyear’s first quarter 2016 segment operating margin of 11.4% is up from 9.6% a year ago.

“We are very pleased with our strong first quarter performance. Demand for our premium-branded, high-value-added products is robust and our product mix continues to grow richer, driving margin expansion,” said Richard J Kramer, Goodyear chairman, CEO and president.

Goodyear’s first quarter 2016 sales were US$3.7bn, down from US$4.0bn a year ago, largely due to unfavorable foreign currency translation of US$141m and the deconsolidation of the company’s subsidiary in Venezuela.

Tire unit volumes totaled 41.5 million, up 2% from 2015, driven by growth in the Asia-Pacific region, primarily in Japan and China; replacement tire shipments were up 2%; original equipment unit volume was up 2%; and, excluding the impact of the deconsolidation of Venezuela, unit volumes increased 3%.

The company reported record first quarter segment operating income of US$419m in 2016, up from US$388m a year ago. The increase was driven by a favorable price/mix net of raw materials and the impact of higher volume. These improvements were partially offset by the deconsolidation of the Venezuelan subsidiary and higher selling, administrative and general expenses. Core segment operating income, which excludes Venezuela, was US$366m in the year-ago quarter.

May 12, 2016

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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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