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Goodyear's Profits, Sales Slide
Goodyear Tire & Rubber Co. says its fourth-quarter sales fell 3% to 40.7 million tires as sales to carmakers shrank 10%. Revenue dropped 5% to $3.9 billion.
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Goodyear Tire & Rubber Co. says its fourth-quarter sales fell 3% to 40.7 million tires as sales to carmakers shrank 10%. Revenue dropped 5% to $3.9 billion.
Adjusted net income for the period plunged 51% to $110 million. Operating income declined 29% to $307 million.
For the full year, Goodyear’s unit sales were unchanged at 159 million tires. But a stronger ratio of replacement to original equipment sales advanced revenue 1% to $155 billion. Adjusted net income in 2018 totaled $555 million, down 30% from 2017.
The company warns that the same headwinds—slumping sales in China, weak demand in India, costly raw materials and unfavorable exchange rates—have persisted into 2019. CEO Richard Kramer says the company’s only strategy is to “focus on factor that we can control, including our expenses and cash flows.”
The glum outlook disappointed investors, causing Goodyear shares to finish the week at $18.69, down 9%.
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