Goodyear Q4 profit skyrockets to over $2-billion

GREENSBORO, NC – Goodyear Tire & Rubber Co. posted a net income of $2.13 billion for the fourth quarter of 2014, up from $228 billion the same time in 2013.

Goodyear’s fourth-quarter 2014 sales were $4.4 billion, compared to $4.8 billion a year before.

“We delivered record full-year segment operating income, successfully navigating a challenging global economic environment,” said Richard J. Kramer, chairman and chief executive officer. “While industry conditions led to mixed results globally, we achieved record fourth quarter segment operating income in North America as well as in Asia Pacific.”

In a conference call about the company’s earnings, Kramer described Goodyear’s commercial truck tire business in 2014 as a “strong year” and said it “continued to perform well in the fourth quarter” after seeing a weak third quarter.

North America’s fourth-quarter 2014 sales dropped one percent from last year to $2.1 billion. Sales reflected a one-percent drop in tire unit volume and unfavorable foreign currency translation. Replacement tire shipments were down one percent while original equipment unit volume was flat.

For all of 2014 net income totaled $2.45 billion compared to $600 million a year earlier.

Goodyear’s 2014 sales were $18.1 billion, compared to $19.5 billion in 2013. Sales were hit by $571 million in unfavorable foreign currency translation, according to the company.

Tire unit volumes totaled 162 million. Replacement tire shipments were up one percent while original equipment unit volume was down three percent.