Goodyear Tire & Rubber Co (GT) recently stated results for the fourth quarter and full-year of 2016.
“We delivered solid net income and record core segment operating income in 2016, driven by strong performance in our Americas and Asia Pacific consumer tire businesses,” said Richard J. Kramer, chairman and chief executive officer. “Our results demonstrate continued sustainable earnings growth and disciplined execution of our strategy.
“While we expect raw material inflation to be a noteworthyheadwind in 2017, the combination of Goodyear’s innovation leadership, award-winning products and strong global brand creates an industry-leading value proposition and competitive advantage,” Kramer said. “We’ve demonstrated that we have been able to successfully offset raw material inflation over time.
“We remain confident in our strategy of capturing profitable growth in key segments of the market and in delivering our 2020 targets.”
Goodyear’s fourth quarter 2016 sales were $3.7 billion, down from $4.1 billion a year ago, with the decrease driven by the deconsolidation of the company’s partner in Venezuela.
Tire unit volumes totaled 41.1 million, down 2 percent from 2015. Replacement tire shipments were down 1 percent. Original equipment unit volume was down 7 percent, driven in part because of weakness in the U.S. commercial truck market.
Goodyear’s fourth quarter 2016 net income was $561 million ($2.14 per share), contrast to a net loss of $380 million ($1.42 per share) in the year-ago quarter. The prior year was negatively influenced by a charge to deconsolidate Venezuela. Fourth quarter 2016 adjusted net income was $249 million (95 cents per share), contrast to $257 million (93 cents per share) in 2015. Per share amounts are diluted.
The company stated fourth quarter segment operating income of $479 million in 2016, contrast to $480 million a year ago. Segment operating income in 2016 benefited from net cost savings, which was more than offset by lower price/mix net of raw material costs, lower volume and the deconsolidation of Venezuela. Core segment operating income, which excludes Venezuela, was $458 million in the year-ago quarter.
Goodyear’s 2016 sales were $15.2 billion, down 8 percent from 2015, mainly reflecting the deconsolidation of Venezuela and unfavorable foreign currency translation.
Tire unit volumes totaled 166.1 million, essentially unchanged from 2015. Replacement tire shipments were up 2 percent. Original equipment unit volume was down 4 percent. Apart From the impact of the deconsolidation of Venezuela, unit volumes raised 1 percent.
Goodyear’s 2016 net income of $1.3 billion ($4.74 per share) is up from $307 million ($1.12 per share) in 2015. The increase was driven by a charge in 2015 to deconsolidate Venezuela and a decrease in 2016 income tax expense because of the release of foreign tax valuation allowances. Full-year adjusted net income was $1.1 billion ($4.00 per share), up from $906 million ($3.32 per share) in 2015. Per share amounts are diluted.
The company stated 2016 segment operating income of $2.0 billion, down 2 percent from a year ago. The decrease was more than explained by the deconsolidation of Venezuela. Core segment operating income, which excludes Venezuela, was $1.9 billion in 2015.
Foot Locker, Inc. (FL) plans to report financial results for its fourth quarter and full year ended January 28, 2017 before the U.S. markets open on Friday, February 24, 2017. A conference call is planned for the same day at 9:00 a.m. EST, during which the Company will discuss these results. The Company will also comment on the current status of its planned programs and provide its initial outlook for fiscal 2017.
This conference call may be accessed live by dialing 1-800-954-0597 (U.S. and Canada) or +44 203-300-0088 (International), or via the Shareholder Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com. Please log on to the website 15 minutes before the call in order to download any necessary software. An archived replay of the conference call can be accessed about one hour following the end of the call at 1-800-633-8284 with the passcode 21843685 (U.S. and Canada) or +1 402-977-9140 with passcode 21843685 (International) through March 10, 2017. A replay of the call will also be available via webcast from the same Shareholder Relations section of the Foot Locker, Inc. website at http://www.footlocker-inc.com.