In its recently released 2015 financial report, Goodyear Tire & Rubber Co. reported a net income of $307 million for the year.
According to the report, Goodyear hit a segment operating income of more than $2 billion. Additionally, the tiremaker saw full-year earnings up in both North America and Asia Pacific in 2015.
“I’m extremely pleased with our outstanding results as we delivered 18% growth in full-year segment operating income, exceeding $2 billion for the first time in our 117-year history,” said Richard J. Kramer, chairman and CEO of Goodyear.
“Fourth quarter earnings grew 16% in our North America business and 20% in Asia Pacific, both records. Earnings in Europe, Middle East and Africa recovered in the quarter despite a challenging environment,” he added. “Our record results reflect strong demand for our high-value-added Goodyear-brand tires and our focus on capturing the value of these products in the marketplace.”
Goodyear’s 2015 sales were down year over year, negatively impacted by unfavorable foreign currency exchange, the company said. The tiremaker posted sales of $16.4 billion in 2015, compared to $18.1 billion in 2014.
Despite lower sales revenue, tire unit volumes were up 3% year over year. Tire unit volumes totaled 166.2 million, with replacement shipments up 2% and OE volume up 3%, Goodyear said.
In North America, Goodyear posted both strong fourth quarter and yearlong results. The tiremaker’s fourth quarter earning was up 16%, and its 2015 earnings were up 38% year over year, Goodyear reported.
Goodyear’s North American business posted higher tire unit sales in 2015 versus 2014. The tiremaker reported 61.6 million sales in 2015, compared to 61.1 million in 2014. Additionally, Goodyear reported a 1.1 billion operating income for North America versus an $803 million operating income for the segment in 2014.
Looking forward Goodyear has set a segment operating income goal of growth between 10-15%. Additionally, the tiremaker is aiming for positive free cash flow from operations and an adjusted debt to EBITDAP ration of 2.0x to 2.1x by the end of 2016.
“While economic uncertainty in the global environment will persist in 2016, we remain committed to our target of 10 to 15% growth in segment operating income from our ongoing operations,” Kramer said.
