Goodyear reports Q3 2015 operating income of US$599 million on flat sales

Goodyear has reported record quarterly segment operating income of US$599 million, up 15 per cent compared with the same period. Net income of $271 million was up 68 per cent. North America earnings of $323 million were up 54 per cent and are said to be “a record for any quarter”.

At the same time, third quarter segment operating margins reached 14 per cent, with North American margins exceeding 16 per cent. Indeed, all business units posted segment operating margins safely into double digits – specifically above 11 per cent. As a result 2015 full-year segment operating income is said to be tracking to $2 billion.

Meanwhile, Goodyear’s third quarter 2015 sales were $4.2 billion, down from $4.7 billion a year ago, with the decrease reportedly attributable to unfavourable foreign currency translation of $430 million. Tyre unit volumes totalled 42.5 million for the third quarter of 2015, up 1 per cent from last year. Original equipment unit volume was up 4 per cent. Replacement tyre shipments were flat.

“We delivered outstanding earnings growth in the quarter and segment operating margin of more than 14 per cent, overcoming macroeconomic challenges in some of our key international markets,” said Richard J. Kramer, chairman and chief executive officer.

It was a similar story in the Europe, Middle East and Africa (EMEA) region where Goodyear sold 16.2 million tyres in the third quarter of 2015, down from 16.4 million last year. Third quarter sales were $1.328 billion, down from $1.618 billion, leaving operating margin at 11.6 per cent, slight up from 11.2 per cent in the same period of 2014.