>>> Goodyear Tire beats by $0.01, reports revs in-line; reaffirms targets

Goodyear Tire beats by $0.01, reports revs in-line; reaffirms targets

Reports Q4 (Dec) earnings of $0.59 per share, excluding $2.2 billion U.S. tax valuation allowance, $0.01 better than the Capital IQ Consensus Estimate of $0.58; revenues fell 9.1% year/year to $4.36 bln vs the $4.37 bln consensus.
  • Sales were impacted by $256 million in unfavorable foreign currency translation and $181 million in lower sales volume in Europe, Middle East and Africa. Tire unit volumes totaled 39.5 million for the fourth quarter of 2014. Original equipment unit volume was down 1 percent, primarily due to continued industry weakness in Latin America. Replacement tire shipments were down 4 percent, due to lower sales of winter tires in Europe resulting from one of the warmest winters on record.
Company reaffirmed its 2015-2016 financial targets, which include: Segment Operating Income growth of between 10 percent and 15 percent per year; Annual positive Free Cash Flow from Operations and, An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x.