The Goodyear Tire & Rubber Company (GT – Analyst Report) reported a 5% increase in adjusted earnings per share to 84 cents in the second quarter of 2015 from 80 cents a year ago (all excluding special items). Moreover, earnings comfortably surpassed the Zacks Consensus Estimate of 74 cents. Adjusted net income improved 1.8% to $229 million from $225 million in the second quarter of 2014.
The Goodyear Tire & Rubber Company – Quarterly EPS | FindTheBest
Including special items, the company reported net income of $192 million or 70 cents per share in the quarter, down from $213 million or 76 cents per share recorded a year ago.
Revenues in the quarter fell 10.6% year over year to $4.2 billion. However, the figure surpassed the Zacks Consensus Estimate of $4.08 billion. The year-over-year drop in revenues can be attributed to unfavorable foreign currency translation.
Tire unit volumes improved 1% to 40.8 million in the second quarter of 2015. Original equipment unit volume moved up 4%, while replacement tire shipments went down 1%.
Segment operating income increased 21% to a record $556 million in second-quarter 2015 from $460 million a year ago. The year-over-year rise was driven by favorable price/mix net of raw materials and cost-reduction initiatives, partially offset by inflation and unfavorable foreign currency translation.
Segment Details
Revenues at the North America segment declined 1% year over year to $2.03 billion. The deterioration was due to third-party chemical sales, which offset the 3% increase in tire unit volume that came in at 15.8 million units. Original equipment unit volume went up 9% year over year. Also, replacement tire shipments rose 1%.
Revenues from the Europe, Middle East and Africa segment decreased 20% to $1.3 billion. Revenues were mainly hurt by unfavorable currency translation, along with a decline in tire unit volume. Tire unit sales dropped 2% to 14.8 million units. Original equipment unit volume was down 2%. Replacement tire shipments also declined 2% year over year.
