Goodyear delivers strong operating income in 2014
Although sales were down 5.2 per cent last year, Goodyear Tire & Rubber was nevertheless able to report record operating profit in 2014. Sales of US$18.1 billion for the year were impacted by $571 million in unfavourable foreign currency translation. Tyre unit volumes totalled 162 million, slightly lower than the 162.3 million recorded in 2013, with original equipment volumes down three per cent and replacement market tyre shipments up one per cent.
The company’s segment operating income of $1.7 billion was up eight per cent from last year. Compared to 2013, the significant increase in segment operating income reflects lower raw material and conversion costs partially offset by lower price/mix and unfavourable foreign currency translation. Net income available to common shareholders in 2014 was $2.4 billion ($8.78 per share). Excluding certain significant items, adjusted net income was $790 million ($2.83 per share). Net income available to common shareholders was $600 million ($2.28 per share) in 2013 or, excluding certain significant items, an adjusted net income of $725 million ($2.63 per share).
“We delivered record full-year segment operating income, successfully navigating a challenging global economic environment,” said Richard J. Kramer, chairman and chief executive officer. “While industry conditions led to mixed results globally, we achieved record fourth quarter segment operating income in North America as well as in Asia Pacific. Our continued performance validates the successful execution of our strategy.
“Led by our momentum in North America, we are on target to achieve 2015 segment operating income growth of ten per cent to 15 per cent above our record setting $1.7 billion in 2014, despite severe headwinds from the increasing strength of the US dollar,” added Kramer.