Venezuela hits Goodyear 2015 results but outlook stronger
Goodyear's fourth quarter 2015 sales were $4.1bn, compared to $4.4bn a year ago after a $339m exchange rate hit. But operating income rose 33% to $476m due to materials cost savings and higher tyre volume.
Tyre sales rose 7% to 42.1m due in part to the acquisition of Nippon Goodyear in Japan. Replacement shipments were up 9% and original equipment volume up 2%. Deconsolidation of the Venezuelan subsidiary resulted in a net loss of $380m.
Full year 2015 sales were $16.4bn, compared to $18.1bn in 2014 due also to currency losses. Tyre unit volumes rose 3% to 166.2m, replacement shipments were up 2% and original equipment volume was up 3%.
Operating income rose 18% to $2bn. Net income was $307m versus $2.4bn in 2014.
"While economic uncertainty in the global environment will persist in 2016, we remain committed to our target of 10 to 15% growth in segment operating income from our ongoing operations," chairman and CEO Richard Kramer said.
Following the deconsolidation of its Venezuelan subsidiary, the company is targeting record segment operating income of $2.1bn to $2.2bn for 2016.