Goodyear: record Q4 earnings

AKRON (Feb. 13, 2014) — Goodyear reported record segment operating income of $419 million in the fourth quarter of 2013.

That was an improvement of 54 percent, on 5-percent lower sales of $4.79 billion.

Goodyear credited the improved quarterly earnings to a favorable price/mix, lower unabsorbed overhead and higher unit volumes. Net income attributable to shareholders was $228 million in the quarter.

For fiscal 2013, Goodyear reported a 27-percent gain in segment operating income to $1.58 billion on 7-percent lower sales of $19.5 billion. Net income more than tripled to $600 million, or 3 percent of sales.

The Akron-based tire maker attributed the lower revenues to lower sales in its third-party chemical sales in North America, unfavorable foreign currency translations, lower tire unit volumes and lower price/mix.

Tire unit volumes fell 1 percent to 162.3 million.

"Our outstanding fourth quarter and full-year earnings confirm that our strategy is working and demonstrate Goodyear's ability to deliver sustainable earnings growth and strong free cash flow," said Chairman and CEO Richard Kramer.

"As industry volumes recover, we continue to see mixed growth rates globally, but there is strong growth in the high-value-added segments we are targeting," Mr. Kramer said. "We remain disciplined in our approach, seeking growth where our brands and value proposition enhance our profitability."

Goodyear's North American business reported 72-percent higher segment operating income of $199 million—attributed to favorable price/mix net, lower conversion costs and increased tire volume—while sales fell 8 percent to $2.13 billion.

Tire unit volumes grew 3 percent to 16.3 million units while OE unit volume was up 7 percent. Replacement tire shipments were up 1 percent, Goodyear said.