– Record second quarter segment operating income of $460 million;
– North America second quarter earnings of $208 million, record for any quarter;
– Europe, Middle East and Africa second quarter earnings more than double to $117 million;
– Second quarter tyre volumes increase 3%, in line with full-year outlook;
– First half segment operating income of $833 million up 14% from last year;
– Company reaffirms 2014-2016 financial targets;
Bangkok, 8 August 2014 –—- The Goodyear Tire & Rubber Company recently reported record earnings for the second quarter of 2014.
“We delivered record second quarter results, driven by strong consumer replacement volumes in all of our regions where our new products are in demand,” said Richard J. Kramer, chairman and chief executive officer.
“Our performance in the first half, which was achieved through a balance of volume growth and cost reduction, gives us confidence that our strategy is working and we are on track to attain our 2014-2016 financial targets.”
Goodyear’s second quarter 2014 sales were $4.7 billion, compared to $4.9 billion a year ago. Tyre unit volumes totaled 40.6 million for the second quarter of 2014, up 3 per cent from 2013. Replacement tyre shipments were up 6 per cent with growth in all four regions. Original equipment unit volume was down 4 per cent, primarily in Latin America.
The company reported record segment operating income of $460 million in the second quarter of 2014. This was up 7 per cent from the year-ago quarter driven by significant improvement in Europe, Middle East and Africa, which more than offset softness in emerging markets. The North American business continued to perform at record levels with segment operating margin of more than 10 per cent.
Goodyear’s record second quarter 2014 net income available to common shareholders was $213 million (76 cents per share). Excluding certain significant items, adjusted net income was $225 million (80 cents per share). Per share amounts are diluted.
For the second quarter of 2013, net income available to common shareholders was $181 million (67 cents per share). Excluding certain significant items, adjusted net income was $209 million (76 cents per share). Per share amounts are diluted.
Year to date
Goodyear’s sales for the first six months of 2014 were $9.1 billion, down 6 per cent from the 2013 period. Tyre unit volumes totaled 80.6 million for the first half of 2014, up 2 per cent from 2013. Replacement tyre shipments were up 4 per cent. Original equipment unit volume was down 3 per cent.
The company’s first half segment operating income of $833 million was up 14 per cent from last year and a record. Compared to the prior year, year-to-date segment operating income reflects volume and earnings growth in North America and Europe, Middle East and Africa, which offset lower earnings in emerging markets.
Goodyear’s year-to-date net income available to common shareholders of $155 million (58 cents per share) is down from $206 million (79 cents per share) in 2013’s first half. All per share amounts are diluted.
Business Segment Results
Second Quarter Six Months
(in millions) 2014 2013 2014 2013
Tyre Units 15.3 14.8 29.9 29.6
Sales $ 2,044 $ 2,201 $ 3,923 $ 4,367
Segment Operating Income 208 204 364 331
Segment Operating Margin 10.2% 9.3% 9.3% 7.6%
North America’s second quarter 2014 sales decreased 7 per cent from last year to $2 billion. Sales reflect a 3 per cent increase in tyre unit volume, offset by lower third party chemical sales and lower price/mix. Replacement tyre shipments were up 6 per cent. Original equipment unit volume was down 4 per cent.
Second quarter 2014 segment operating income of $208 million was a 2 per cent improvement over the prior year and a record for any quarter. The improvement was driven primarily by higher replacement tyre volume.
Goodyear is one of the world’s largest tyre companies. It employs approximately 69,000 people and manufactures its products in 50 facilities in 22 countries around the world. Its two Innovation Centres in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.