Goodyear Tire & Rubber Co. on Tuesday announced its net income in the final quarter of 2014 skyrocketed above the level from the same time a year earlier, hitting $2.13 billion.
That compares to $228 billion for the fourth quarter of 2013 or an improvement from 84 cents per diluted share to $7.68 per diluted share.
Goodyear’s fourth quarter 2014 sales were $4.4 billion, compared to $4.8 billion a year ago. The company said sales were hit by $256 million in unfavorable foreign currency translation and $181 million in lower sales volume in Europe, Middle East and Africa.
“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.”
Tire unit volumes totaled 39.5 million for the fourth quarter of 2014. Original equipment unit volume was down 1%, primarily due to continued industry weakness in Latin America, according to Goodyear, while replacement tire shipments were down 4% due to lower sales of winter tires in Europe resulting from one of the warmest winters on record.
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 decreased 1% from last year to $2.1 billion. Sales reflected a 1% decrease in tire unit volume and unfavorable foreign currency translation. Replacement tire shipments were down 1% while original equipment unit volume was flat.
For all of 2014 net income totaled $2.45 billion compared to $600 million a year earlier or diluted earning per share of $8.78 compared to $2.28.
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 1% while original equipment unit volume was down 3%.