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Goodyear Tire misses by $0.03, reports revs in-line
- Reports Q2 (Jun) earnings of $0.70 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.73; revenues fell 5.0% year/year to $3.69 bln vs the $3.7 bln Capital IQ Consensus.
- "Our second quarter results reflect the impact of volatile raw material costs and an increasingly challenging competitive environment, particularly in the United States and Europe," said Richard J. Kramer, chairman and chief executive officer. "In addition to higher raw material costs, we have seen a weakening in OE and consumer replacement demand across many of our key markets during the first half, despite strong underlying industry fundamentals," he said. In light of the challenging global marketplace in the first half of 2017, we have lowered our segment operating income expectations for the remainder of the year," he said. "Despite the near-term challenges, I am no less optimistic about our ability to drive our strategic priorities against the favorable industry megatrends."
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Germany Plant Closure
- The company, on July 14, closed its tire manufacturing facility in Philippsburg, Germany. As previously announced, the action is part of Goodyear's global strategy to focus on premium, larger-rim diameter tires. This closure eliminates approximately 6 million units of capacity and is expected to provide savings of about $45 million on an annualized basis beginning in 2018.
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2017 Outlook
- The company now expects its 2017 segment operating income to total between $1.6 billion and $1.65 billion