AKRON, Ohio, Feb. 9, 2021 /PRNewswire/ — The Goodyear Tire & Rubber Company (NASDAQ: GT) today reported results for the fourth quarter and full year of 2020.
“We delivered strong performance to end a challenging year,” said Richard J. Kramer, chairman, chief executive officer and president. “With a determination to win with our products in the marketplace and a relentless focus on cost and cash, we finished the year on a high note.
“We have good momentum as we enter 2021. Our commercial business continues to outperform the industry, our consumer replacement business is strengthening, and we are beginning to see the benefits of our robust consumer OE pipeline. I am confident we are positioned to capitalize on stronger industry fundamentals in 2021,” added Kramer.
Goodyear’s fourth quarter 2020 sales were $3.7 billion, down 2% from a year ago. The decline was driven by lower volume and unfavorable foreign currency translation. These factors were partially offset by improvements in price/mix.
Tire unit volumes totaled 37.7 million, down 5% from the prior year’s period. Industry demand during the quarter was affected by the continued economic disruption resulting from the COVID-19 pandemic. Replacement tire shipments declined 7%, reflecting the impact of lower consumer demand and actions taken to align European distribution. Original equipment unit volume increased 3%, reflecting increased market share in Americas and EMEA.
Goodyear’s fourth quarter 2020 net income was $63 million (27 cents per share) compared to a net loss of $392 million ($1.68 per share) a year ago. Fourth quarter 2020 adjusted net income was $103 million (44 cents per share) compared to adjusted net income of $45 million (19 cents per share) in 2019. Per share amounts are diluted.
The company reported segment operating income of $302 million in the fourth quarter of 2020, up $60 million from a year ago. The increase primarily reflects the benefits of cost saving actions, including ongoing rationalization plans, lower raw material costs, a one-time benefit related to a legal settlement and improvements in price/mix. These factors were partially offset by lower volume and the impact of reduced factory utilization.
Source: PR Newswire