Goodyear Tire beats on the bottom line excluding charges, misses on revs; reaffirms 2014-2016 outlook targets
Reports Q4 (Dec) earnings of $0.74 per share, excluding non-recurring items (see below), $0.11 better than the Capital IQ Consensus Estimate of $0.63; revenues fell 5.0% year/year to $4.79 bln vs the $4.95 bln consensus.
- Goodyear's fourth quarter 2013 net income available to common shareholders was $228 million (84 cents per share), a fourth quarter record and up from breakeven in the 2012 quarter. All per share amounts are diluted. The 2013 fourth quarter included total charges of $17 million (6 cents per share) due to rationalizations, asset write-offs and accelerated depreciation; and gains of $41 million (15 cents per share) due to income and other discrete tax benefits and $2 million (1 cent per share) from asset sales.
- All amounts are after taxes and minority interest.Fourth quarter 2013 sales reflect $64 million in higher tire unit volumes; $178 million in lower sales in other tire related businesses, most notably third party chemical sales in North America; $36 million in lower price/mix, principally due to lower raw material costs; and $102 million in unfavorable foreign currency translation.
- Tire unit volumes totaled 40.7 million, up 2 percent from the fourth quarter of 2012.
- Asia Pacific's fourth quarter sales decreased 9 percent from 2012 to $537 million. Sales reflect an 8 percent increase in tire unit volume, which was more than offset by reduced price/mix, $39 million in unfavorable foreign currency translation and $7 million in lower sales in other tire-related businesses.
- Co reaffirms 2014-2016 outlook targets; The company reaffirmed its 2014-2016 financial targets, which include: - Annual segment operating income growth of between 10 percent and 15 percent, - Annual positive free cash flow from operations and, - An adjusted debt to EBITDAP ratio of 2.5x. Additionally, the company continues to expect about a 2 percent to 3 percent increase in unit volumes for 2014 over 2013.