Goodyear reports Q4, 2017 results
The Goodyear Tire & Rubber Company has reported results for the fourth quarter of 2017 as well as for the entire year.
Goodyear’s fourth quarter 2017 sales were US$4.1 billion, up nine per cent from $3.7 billion a year ago, driven by improved price/mix, favourable currency translation and volume. Excluding currency translation, global revenue per tyre increased five per cent. The company reported a net loss of $96 million in the fourth quarter of 2017 (39 cents per share) compared to net income of $561 million ($2.14 per share) in the year-ago quarter.
Tyre unit volumes totalled 42 million, up two per cent from 2016. Replacement tyre shipments were up three per cent. Original equipment unit volume was down one per cent.
“Our fourth-quarter results were highlighted by our performance in the 17-inch-and-larger segment in consumer replacement, which delivered nearly double the industry growth in the U.S. and Europe,” said Richard J. Kramer, company chairman, chief executive officer and president. “Our strong volume recovery in the quarter gives us positive momentum as we head into 2018.”
Goodyear’s 2017 sales were $15.4 billion, up one per cent from 2016, reflecting an increase in price/mix, favourable foreign currency translation and higher sales in other tyre-related businesses, which were partially offset by lower volume. Net income of $346 million ($1.37 per share) is down from $1,264 million ($4.74 per share) in 2016. The decrease was driven by increased income tax expense, which was primarily due to the recognition of a one-time, non-cash tax charge related to U.S. tax reform in 2017, and lower segment operating income.
Tyre unit volumes totalled 159.2 million, down four per cent from 2016. Replacement tyre shipments were down three per cent. Original equipment unit volume was down six per cent.