Goodyear has unveiled third quarter sales down to US$4.2bn from US$4.7bn, with the tyre manufacturer maintaining the decrease is largely attributable to unfavourable foreign currency translation of US$430m.
Tyre unit volumes totalled 42.5m for the third quarter of 2015, up 1% from last year. Original equipment unit volume was up 4%, although replacement tyre shipments were flat.
The company reported third quarter segment operating income of US$599m in 2015, up 15% from a year ago and a record for any quarter. The increase was driven by a favourable price/mix net of raw materials, partially offset by unfavourable foreign currency translation.
Goodyear’s third quarter 2015 net income was US$271m, while adjusted net income was also US$271m.
Third quarter 2015 adjusted net income was also impacted by US$84m of US tax expense following the release of the company’s American tax valuation allowance in the fourth quarter of 2014.
Due to tax credits and prior tax-loss carry-forwards, the company does not expect to pay significant cash income taxes in the US for around five years.
“We delivered outstanding earnings growth in the quarter and segment operating margin of more than 14%, overcoming macroeconomic challenges in some of our key international markets,” said Goodyear chairman and CEO, Richard Kramer.
“Our strong momentum in North America continues. The business grew its segment operating margin to more than 16% and achieved a 54% year-over-year increase in earnings driven by strong demand for our high-value-added products.
“Our third quarter results demonstrate continued sustainable earnings growth and our sharp focus on disciplined execution of our strategy in both strong and challenging markets. With our strong year-to-date performance, we now see full-year segment operating income tracking to $2 billion, which would be more than double what we achieved just five years ago.”