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Venezuelan Unit Pushes Goodyear to 4Q Loss
A special $646 million charge for deconsolidating its Venezuelan unit caused fourth-quarter results for Goodyear Tire & Rubber Co. to swing to a $380 million net loss in the fourth quarter of 2015.
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A special $646 million charge for deconsolidating its Venezuelan unit caused fourth-quarter results for Goodyear Tire & Rubber Co. to swing to a $380 million net loss in the fourth quarter of 2015.
Net income excluding special charges was $257 million for the period. Segment operating income surged 33% to $476 million. The company reported quarterly earnings records in North America and Asia Pacific.
Unit sales in October-December climbed 7% to 42.1 million tires. Gains in Europe and Asia Pacific offset a 4% decline in North America caused by the sale of the company’s Dunlop unit. Unfavorable exchange rates redued fourth-quarter revenue 7% to $4.1 billion.
Goodyear’s full-year unit sales rose 3% to 166.2 million tires, aided by the company’s acquisition of its former Nippon Goodyear Ltd. venture with Sumitomo Rubber Industries Ltd. But $1.6 billion in negative currency translation caused net revenue to fall 9% to $16.4 billion.
Annual net income shrank to $307 million from $2.4 billion in 2014. Pretax operating income was $608 million compared with $687 million. Segment operating income jumped 18% to a record $2 billion.
Goodyear predicts segment operating income this year will grow 10%-15% to a record $2.1 billion-$2.2 billion.
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