Goodyear Reports Fourth Quarter, Full-Year 2019 Results

— Full-year cash flow from operations of $1.2 billion, up 32% year over year, reflecting improved working capital performance

— U.S. consumer replacement volume increased 4% in 2019, driven by strong growth in the premium, large-rim diameter segment

— Fourth quarter global replacement volume growth outpaced the industry

— Growth in global commercial truck tire shipments exceeded industry in 2019

— Positive trend in price versus raws continues in the fourth quarter

AKRON, OH (STL.News) The Goodyear Tire & Rubber Company today reported results for the fourth quarter and full-year of 2019.

“In the U.S., market conditions remained largely stable and our consumer and commercial replacement businesses delivered strong performances this year, as they benefited from the strength of our brand, new product introductions, and the steps we have taken to align our distribution,” said Richard J. Kramer, chairman, chief executive officer and president.  “We also delivered solid consumer replacement growth in both China and Brazil during the second half of the year,” he added.

“We continue to face a challenging global environment, including recessionary demand trends in many international markets.  To address these challenges, we remain focused on further improving our cost structure and working capital management, while continuing to build our capabilities to enable mobility, today and in the future,” said Kramer.

Goodyear’s fourth quarter 2019 sales were $3.7 billion, down 4% from a year ago, driven primarily by lower industry volume and unfavorable foreign currency translation, partially offset by improved price/mix.

Tire unit volumes totaled 39.6 million, down 2% from 2018. Original equipment unit volume decreased 10%, driven by lower global vehicle production.  Replacement tire shipments increased slightly.

Goodyear’s fourth quarter 2019 net loss was $392 million ($1.68 per share) compared to net income of $110 million ($0.47 per share) a year ago.  The decrease was driven by discrete tax adjustments of $380 million during the fourth quarter of 2019, including a non-cash charge of $334 million related to an acceleration of royalty income in the U.S. from the sale of the next twelve years of European royalty payments to our Luxembourg business, and rationalization charges of $77 million.  Fourth quarter 2019 adjusted net income was $45 million (19 cents per share), compared to $120 million (51 cents per share) in 2018. Per share amounts are diluted.

The company reported segment operating income of $242 million in the fourth quarter of 2019, down from $307 million a year ago.  The decline primarily reflects a decrease in favorable indirect tax settlements in Brazil, lower factory utilization and lower volume.

NOTE: this is NOT the complete release.