AKRON, Ohio — The Goodyear Tire & Rubber Company reported results Friday for the third quarter of 2019.
“In the Americas, we saw continued strength in our U.S. consumer replacement business and solid growth in Brazil, giving us positive momentum in these important markets as we head into the final months of the year,” said Richard J. Kramer, chairman, chief executive officer and president. “Our Asia Pacific business improved in the quarter as we benefitted from the launch of several new OE fitments in China, which helped mitigate the impact of lower auto production. This is a testament to the strength of our technology and our success winning fitments on the right platforms,” he added.
Goodyear’s third quarter 2019 sales were $3.8 billion, down 3% from a year ago, driven by unfavorable foreign currency translation and lower third-party chemical sales.
Goodyear’s third quarter 2019 net income was $88 million (38 cents per share), down from $351 million ($1.48 per share) a year ago. The decrease was driven by a $287 million net gain recorded during the third quarter of 2018 resulting from the company’s TireHub transaction. Third quarter 2019 adjusted net income was $105 million (45 cents per share), compared to $163 million (68 cents per share) in 2018. Per share amounts are diluted.
Goodyear’s net sales for the first nine months of 2019 were $11.0 billion, a 5% decrease from the 2018 period due to unfavorable foreign currency translation, lower volume and lower third-party chemical sales. These factors were partially offset by improved price/mix.
Goodyear’s net income for the first nine months of 2019 was $81 million (35 cents per share), down from $583 million ($2.42 per share) in the prior year’s period. The 2019 period included several significant items, most notably $128 million in rationalization charges, primarily related to the previously announced plan to modernize two tire manufacturing facilities in Germany. Goodyear’s net income for the comparable period in 2018 included a $273 million net gain resulting from the company’s TireHub transaction. Adjusted net income for the first nine months was $208 million (89 cents per share), compared to $434 million ($1.80 per share) in the prior year’s period. Per share amounts are diluted.