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Goodyear sales miss on lower shipments in the Americas
February 8, 2017 / 12:51 PM / 10 months ago

Goodyear sales miss on lower shipments in the Americas

(Reuters) - Goodyear Tire & Rubber Co (GT.O) reported lower-than-expected quarterly sales on Wednesday, as it shipped fewer tires in the Americas, and the company lowered its 2017 forecast for segment operating income.

FILE PHOTO - The Goodyear Tire and Rubber Co storefront is seen in Westminster, Colorado August 27, 2013. REUTERS/Rick Wilking/File Photo

The No. 1 U.S. tire maker’s shares were down 3.4 percent at $31.15 in premarket trading.

The company forecast its 2017 segment operating income to be flat compared with 2016, partly as raw material costs continue to rise. Earlier in January, Goodyear had forecast 2017 segment operating income growth in the mid-single digit range.

Goodyear said it expects 2017 tire unit sales to rise about 1 percent.

The company said shipments in the Americas, its biggest market, fell 4.6 percent, hurt by a continued decline in U.S. heavy-duty truck production.

Heavy-duty truck production has fallen in the United States as a result of over supply in the market.

Goodyear reported net income of $561 million, or $2.14 per share, in the fourth quarter ended Dec. 31, compared with a loss of $380 million, or $1.42 per share, a year earlier.

On an adjusted basis, Goodyear earned 95 cents per share.

Last year’s loss included items related to the deconsolidation of Goodyear’s Venezuelan unit.

Net sales fell to $3.74 billion from $4.06 billion.

Analysts on average had expected earnings of 87 cents per share and revenue of $3.88 billion, according to Thomson Reuters I/B/E/S.

Reporting by Arunima Banerjee and Ankit Ajmera in Bengaluru; Editing by Martina D'Couto

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