AKRON (Feb. 9, 2016) — Goodyear reported record fourth quarter and yearly results, including an 18-percent increase in full year segment operating income that exceeded $2 billion for the first time in the company's 117-year history.
In North America, the tire maker's fourth-quarter operating earnings grew 16 percent, despite a 9.2-percent decline in sales to $1.9 billion. The sales decrease reflects a 4-percent decline in tire unit volume primarily due to the sale of some assets of the former Goodyear Dunlop Tires North America Ltd. venture with Sumitomo Rubber Industries Ltd., the tire maker said.
Replacement and OE tire unit volume in the quarter fell 1 and 8 percent, respectively, Goodyear said.
Goodyear and Sumitomo dissolved their 16-year global business alliance in the fourth quarter, with both companies looking at the change as an opportunity to foster growth in the regions where the alliance held sway.
For the full year, Goodyear reported $16.4 billion in sales down 9.3 percent from $18.1 billion a year ago.
“Our record results reflect strong demand for our high-value-added Goodyear-brand tires and our focus on capturing the value of these products in the marketplace,” said Chairman and CEO Richard Kramer.
“While economic uncertainty in the global environment will persist in 2016, we remain committed to our target of 10- to 15-percent growth in segment operation income from our ongoing operations.”
Impacting sales in the fourth quarter and year was a one-time $646 million charge on the deconsolidation of the company's Venezuelan subsidiary.
Following this change, Goodyear said it is targeting record segment operating of $2.1 billion to $2.2 billion for 2016.