Goodyear Tire beats by $0.14, misses on revs; Co reaffirmed its 2016 financial targets
- Reports Q2 (Jun) earnings of $1.16 per share, excluding non-recurring items, $0.14 better than the Capital IQ Consensus of $1.02; revenues fell 7.0% year/year to $3.88 bln vs the $3.92 bln Capital IQ Consensus.
- The year/year decline in sales was largely attributable to the deconsolidation of the co's subsidiary in Venezuela, the sale of the North American motorcycle tire business and unfavorable currency translation
- The co reported Q2 segment operating income of $531 mln in 2016, down from $550 mln a year ago. Segment operating income in 2016 was negatively impacted by a $24 mln out-of-period adjustment primarily attributable to 2012 and related to the elimination of intracompany profit in the Americas region
- This amount is included as a significant item in adjusted net income. The decrease in segment operating income also reflects a $36 mln reduction resulting from the deconsolidation of Venezuela partially offset by cost reduction actions. Core segment operating income, which excludes Venezuela, was $514 mln in the year-ago quarter
- Co reaffirmed its 2016 financial targets, which include: Core Segment Operating Income growth of between 10-15% (excludes Venezuela); Positive Free Cash Flow from Operations and An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x at year-end. Shareholder Return Program