AKRON — Goodyear suffered double-digit drops in segment operating income for the quarter and fiscal year ended Dec. 31 and reported a tax-reform-related net loss for the quarter.
Goodyear cited elevated raw materials costs and the "unfavorable" impact of reduced production volumes on costs for the operating earnings declines, and said the fourth quarter loss was driven by a $299 million one-time, non-cash tax charge related to U.S. tax reform.
The tire maker's sales, on the other hand, rose 8.8 and 1.4 percent in the quarter and year, reflecting the positive effects of improved price/mix and favorable currency translation and volume.
Unit volumes were up in the quarter but down for the year, Goodyear said.
Segment operating income dropped 12.5 percent in the quarter to $419 million, while sales rose to $4.07 billion, resulting in a 10.3-percent operating ratio, down two points from a year ago.
For the year, segment operating income fell 23.3 percent to $1.51 billion on revenue of $15.4 billion, yielding a 9.8 percent operating margin, Goodyear said. Net earnings plunged 71.4 percent to $346 million.