Goodyear reports Q1 2019 net loss
Sales and income were down at Goodyear Tire & Rubber in the first quarter of this year. Revenue in the three months to 31 March 2019 declined six per cent to US$3.6 billion; Goodyear attributes this result to unfavourable exchange rates and lower volume in its international businesses. The company reported first quarter segment operating income of $190 million in 2019, down from $281 million a year ago.
Goodyear’s net loss was $61 million in the first quarter of 2019, compared to net income of $75 million in the year-ago quarter. The first quarter of 2019 included several significant items, most notably $93 million in charges related to the previously announced plan to modernise two tyre manufacturing facilities in Germany. First quarter 2019 adjusted net income was $45 million, compared to $122 million) in 2018.
Tyre unit volumes totalled 38.0 million, down three per cent from the year ago quarter. Original equipment unit volume declined seven per cent primarily reflecting weaker US volumes and lower automotive production in China and India. Replacement tyre shipments were down less than one per cent compared with a year ago.
First quarter 2019 sales in Goodyear’s Europe, Middle East and Africa region first quarter 2019 were $1.2 billion, down eight per cent from the prior year; Goodyear says this result is “more than explained” by the negative impact of foreign currency translation. Replacement tyre shipments were down three per cent, reflecting weaker industry demand. OE tyre volume was flat.
First quarter 2019 segment operating income of $54 million was 31 per cent less than the prior year. The decrease was driven by increased raw material and transportation costs and lower volume. These negative impacts were partially offset by improved price/mix.
Further information about Goodyear’s Q1 2019 financial results can be read here.