Goodyear Reports 4Q Loss on Hefty Charge
NEW YORK – The Goodyear Tire & Rubber Co. on Tuesday swung to a fourth-quarter loss on charges and tire sales fell, but the results still topped Wall Street expectations.
The tire maker reported a loss of $380 million, or $1.42 per share, compared with a profit a year ago. The key factor in the loss was a $646 million charge for the deconsolidation of its Venezuelan subsidiary.
Earnings, adjusted for non-recurring costs, came to 93 cents per share. That topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 74 cents per share.
The Akron, Ohio-based company reported a 6.7 percent drop in revenue to $4.06 billion in the period. But the results also exceeded Street forecasts. Three analysts surveyed by Zacks expected $4.02 billion.
Tire sales in North America fell 9 percent to $1.9 billion, partly on a decrease in unit volume following the sale of the former Goodyear Dunlop Tires North America business. Sales in Europe, the Middle East and Africa fell 9 percent to $1.19 billion, mainly on a stronger U.S. dollar offsetting volume increases.
Sales in the Asia-Pacific region rose 9 percent to $559 million, while Latin America sales fell 8 percent to $401 million.
For the full year, the company earned $307 million, or $1.12 per share on revenue of $16.44 billion.
Goodyear shares rose 50 cents, or 1.9 percent, to $26.84 in morning trading Tuesday.
Its shares have fallen 19 percent since the beginning of the year, while the Standard & Poor’s 500 index has decreased slightly more than 9 percent. The stock has climbed roughly 4 percent in the last 12 months.