The Goodyear Tire and Rubber Company reported its results for the 2014 fourth quarter as well as full year. CEO and chairman Richard Kramer said the company had delivered a record operating income for the full year by successfully navigating the challenging economic environment globally.
While the conditions within the industry led to mixed global results, the company achieved record operating income for the fourth quarter in North America and in the region of Asia Pacific, added Kramer.
Goodyear’s sales for the 2014 fourth quarter reached $4.4 billion compared to last year during the same quarter of $4.8 billion. Sales for the quarter were impacted unfavorably by $256 million for foreign currency and by $181 million in sales volume that was lower in Africa, Europe and the Middle East.
Tire unit volumes reached 39.5 million during the last quarter of 2014. Original equipment volume dropped 1% due primarily to continued weakness in the industry across Latin America.
Replacement tire sales were down 4% because of lower winter tire sales across Europe, which resulted from one of region’s warmest winter on record.
Goodyear reported operating income of $359 million during the last quarter of 2014 in comparison to last year during the same quarter when it was $418 million.
The drop in income was due to lower value and price mix, which offset benefits from lower costs of raw material and other actions of cost savings that were implemented.
The fourth quarter net income for Goodyear available to shareholders of common stock reached $2.1 billion equal to $7.68 a share. Excluding special items, the adjusted net income reached $166 million equal to 59 cents a share.
For the 2013 fourth quarter, net income for shareholders of common stock reached $228 million equal to 84 cents a share. Excluding special items, net income reached $209 million equal to 74 cents a share.
Goodyear’s sales for 2014 reached $18.1 billion in comparison to sales in 2013 of $19.5 billion. Sales for 2014 were impacted due to unfavorable currency conversion.