AKRON, Ohio, Feb. 11, 2020 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today reported results
for the fourth quarter and full-year of 2019.
"In the U.S., market conditions remained largely stable and our
consumer and commercial replacement businesses delivered strong
performances this year, as they benefited from the strength of our
brand, new product introductions, and the steps we have taken to
align our distribution," said Richard J.
Kramer, chairman, chief executive officer and president. "We
also delivered solid consumer replacement growth in both
China and Brazil during the second half of the year," he
added.
"We continue to face a challenging global environment, including
recessionary demand trends in many international markets. To
address these challenges, we remain focused on further improving
our cost structure and working capital management, while continuing
to build our capabilities to enable mobility, today and in the
future," said Kramer.
Goodyear's fourth quarter 2019 sales were $3.7 billion, down 4% from a year ago, driven
primarily by lower industry volume and unfavorable foreign currency
translation, partially offset by improved price/mix.
Tire unit volumes totaled 39.6 million, down 2% from 2018.
Original equipment unit volume decreased 10%, driven by lower
global vehicle production. Replacement tire shipments increased
slightly.
Goodyear's fourth quarter 2019 net loss was $392 million ($1.68
per share) compared to net income of $110
million ($0.47 per share) a
year ago. The decrease was driven by discrete tax adjustments of
$380 million during the fourth
quarter of 2019, including a non-cash charge of $334 million related to an acceleration of
royalty income in the U.S. from the sale of the next twelve years
of European royalty payments to our Luxembourg business, and rationalization
charges of $77 million. Fourth
quarter 2019 adjusted net income was $45
million (19 cents per share),
compared to $120 million
(51 cents per share) in 2018. Per
share amounts are diluted.
The company reported segment operating income of $242 million in the fourth quarter of 2019, down
from $307 million a year ago. The
decline primarily reflects a decrease in favorable indirect tax
settlements in Brazil, lower
factory utilization and lower volume.
Full-Year Results
Goodyear's 2019 net sales were $14.7
billion, a 5% decrease from the prior year due to
unfavorable foreign currency translation, lower volume and reduced
third-party chemical sales. These factors were partially offset by
improved price/mix.
Tire unit volumes totaled 155.3 million, down 2% from 2018.
Original equipment volume decreased 8%, primarily due to lower
global vehicle production. Replacement tire shipments were
essentially unchanged.
Goodyear's 2019 net loss was $311
million ($1.33 per share)
compared to net income of $693
million ($2.89 per share) in
the prior year. The 2019 period included several significant items,
most notably discrete tax adjustments of $386 million and rationalization charges of
$205 million, primarily related to
the previously announced plan to modernize two tire manufacturing
facilities in Germany and a plan
to curtail production of tires for declining, less profitable
segments of the tire market at our Gadsden, Alabama, manufacturing facility.
Goodyear's 2018 net income included a net gain of $272 million resulting from the TireHub
transaction, net of transaction costs. Full-year 2019 adjusted net
income was $253 million ($1.08 per share) compared to $555 million ($2.32
per share) in the prior year. Per share amounts are diluted.
The company reported segment operating income of $945 million in 2019, down from $1,274 million a year ago. The decrease primarily
reflects higher raw material costs, lower volume, a decrease in
favorable indirect tax settlements in Brazil and unfavorable foreign currency
translation, which were partially offset by improved price/mix.
Reconciliation of Non-GAAP Financial Measures
See the note at the end of this release for further explanation
and reconciliation tables for Segment Operating Income and Margin;
Adjusted Net Income; and Adjusted Diluted Earnings per Share,
reflecting the impact of certain significant items on the 2019 and
2018 periods.
Business Segment Results
Americas
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Tire Units
|
18.7
|
|
19.1
|
|
70.4
|
|
70.9
|
Net Sales
|
$ 2,026
|
|
$ 2,114
|
|
$ 7,922
|
|
$
8,168
|
Segment Operating
Income
|
152
|
|
179
|
|
550
|
|
654
|
Segment Operating
Margin
|
7.5%
|
|
8.5%
|
|
6.9%
|
|
8.0%
|
Americas' fourth quarter 2019 sales of $2.0 billion were 4% lower than in the previous
year, driven by lower third-party chemical sales and lower volume,
partially offset by improved price/mix. Tire unit volume declined
2%. Replacement tire shipments increased 2%, led by growth in the
U.S. and Brazil. Original
equipment unit volume declined 18%. The reduction was driven by our
U.S. business, reflecting lower vehicle production, including the
impact of a strike at a major OE customer, and strategic fitment
choices.
Fourth quarter 2019 segment operating income of $152 million was down 15% compared to the prior
year. The decline was more than explained by a decrease in
favorable indirect tax settlements in Brazil of $21
million and the impact of a strike at a major OE
customer.
Europe, Middle East and Africa
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Tire Units
|
13.0
|
|
13.7
|
|
55.1
|
|
57.8
|
Net Sales
|
$ 1,141
|
|
$ 1,210
|
|
$ 4,708
|
|
$
5,090
|
Segment Operating
Income
|
38
|
|
74
|
|
202
|
|
363
|
Segment Operating
Margin
|
3.3%
|
|
6.1%
|
|
4.3%
|
|
7.1%
|
Europe, Middle East and Africa's fourth quarter 2019 sales decreased
6% from last year to $1.1 billion,
primarily attributable to lower volume and unfavorable foreign
currency translation, partially offset by improved
price/mix. Tire unit volume decreased 4%. Replacement tire
shipments fell 2%, driven by decreased industry demand,
particularly in the winter tire segment. Original equipment unit
volume decreased 12%, attributable to lower vehicle production and
strategic fitment choices.
Fourth quarter 2019 segment operating income of $38 million was 49% lower than the prior year's
quarter, driven by reduced volume and higher conversion costs.
Asia Pacific
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Tire Units
|
7.9
|
|
7.9
|
|
29.8
|
|
30.5
|
Net Sales
|
$
546
|
|
$ 552
|
|
$ 2,115
|
|
$ 2,217
|
Segment Operating
Income
|
52
|
|
54
|
|
193
|
|
257
|
Segment Operating
Margin
|
9.5%
|
|
9.8%
|
|
9.1%
|
|
11.6%
|
Asia Pacific's fourth quarter
2019 sales decreased 1% to $546
million, reflecting lower sales in other tire-related
businesses and unfavorable foreign currency translation. Tire unit
volume was unchanged. Replacement tire shipments decreased 3%,
which was more than explained by lower industry demand in
Japan. Original equipment unit
volume rose 4%, driven by growth in China.
Fourth quarter 2019 segment operating income of $52 million was 4% lower than last year, driven
by higher selling, administrative and general expenses and lower
price/mix.
Disruption of Operations in China
As is the case with many other companies, Goodyear's operations
in China have been disrupted by
the coronavirus. The company's office-based associates will
continue to work remotely through at least Feb. 17. Following a nine-day closure, the
Goodyear-Pulandian manufacturing plant restarted operations on a
limited basis on Feb. 10 to support
customers across the Asia Pacific
region. It is not clear what the full impact of the coronavirus
disruption will be.
AndGo
At the 2020 Consumer Electronics Show, Goodyear unveiled AndGo,
a digital vehicle servicing platform that combines predictive
software and a trusted, national service network to enable consumer
fleets to be ready to go when they are needed.
Goodyear Ventures
In January, Goodyear announced a new venture capital fund,
Goodyear Ventures, with $100 million
targeted for investments in future mobility technology over the
next 10 years to accelerate its innovation efforts.
Common Stock Dividend
The company declared a quarterly dividend of 16 cents per share of common stock on
Jan. 14, 2020, payable on
March 2, 2020, to shareholders of
record on Feb. 3, 2020. The payout
represents an annual rate of 64 cents
per share.
Conference Call
Goodyear will hold an investor conference call at 9 a.m. today. Prior to the commencement of the
call, the company will post the financial and other related
information that will be presented on its investor relations
website: http://investor.goodyear.com.
Participating in the conference call will be Richard J. Kramer, chairman, chief executive
officer and president; and Darren R.
Wells, executive vice president and chief financial
officer.
Investors, members of the media and other interested persons can
access the conference call on the website or via telephone by
calling either (800) 895-3361 or (785) 424-1062 before 8:55 a.m. and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800)
839-3011 or (402) 220-7231. The replay will also remain available
on the website.
Goodyear is one of the world's largest tire companies. It
employs about 63,000 people and manufactures its products in 47
facilities in 21 countries around the world. Its two Innovation
Centers in Akron, Ohio, and
Colmar-Berg, Luxembourg, strive to
develop state-of-the-art products and services that set the
technology and performance standard for the industry. For more
information about Goodyear and its products, go to
www.goodyear.com/corporate. GT-FN
Certain information contained in this press release
constitutes forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. There are a variety of factors, many of which are beyond
our control, that affect our operations, performance, business
strategy and results and could cause our actual results and
experience to differ materially from the assumptions, expectations
and objectives expressed in any forward-looking statements. These
factors include, but are not limited to: our ability to implement
successfully our strategic initiatives; actions and initiatives
taken by both current and potential competitors; increases in the
prices paid for raw materials and energy; a labor strike, work
stoppage or other similar event; foreign currency translation and
transaction risks; deteriorating economic conditions or an
inability to access capital markets; work stoppages, financial
difficulties or supply disruptions at our suppliers or customers;
the adequacy of our capital expenditures; our failure to comply
with a material covenant in our debt obligations; potential adverse
consequences of litigation involving the company; as well as the
effects of more general factors such as changes in general market,
economic or political conditions or in legislation, regulation or
public policy. Additional factors are discussed in our filings with
the Securities and Exchange Commission, including our annual report
on Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K. In addition, any forward-looking statements represent our
estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may
elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if
our estimates change.
(financial statements follow)
The Goodyear Tire
& Rubber Company and Subsidiaries
Consolidated Statements of Operations
(unaudited)
|
|
(In millions,
except per share amounts)
|
Three
Months
Ended
|
|
Twelve
Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
NET
SALES
|
$
3,713
|
$
3,876
|
|
$
14,745
|
$
15,475
|
|
|
|
|
|
|
Cost of Goods
Sold
|
2,903
|
3,008
|
|
11,602
|
11,961
|
Selling,
Administrative and General Expense
|
618
|
580
|
|
2,323
|
2,312
|
Rationalizations
|
77
|
4
|
|
205
|
44
|
Interest
Expense
|
79
|
85
|
|
340
|
321
|
Other (Income)
Expense
|
24
|
(3)
|
|
98
|
(174)
|
|
|
|
|
|
|
Income before Income
Taxes
|
12
|
202
|
|
177
|
1,011
|
United States and
Foreign Tax Expense
|
411
|
92
|
|
474
|
303
|
|
|
|
|
|
|
Net Income
(Loss)
|
(399)
|
110
|
|
(297)
|
708
|
Less: Minority Shareholders' Net Income (Loss)
|
(7)
|
--
|
|
14
|
15
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
|
$
(392)
|
$
110
|
|
$
(311)
|
$
693
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(1.68)
|
$
0.47
|
|
$
(1.33)
|
$
2.92
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
233
|
|
233
|
237
|
|
|
|
|
|
|
Diluted
|
$
(1.68)
|
$
0.47
|
|
$
(1.33)
|
$
2.89
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
235
|
|
233
|
239
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
0.16
|
$
0.16
|
|
$
0.64
|
$
0.58
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries Consolidated
Balance Sheets (unaudited)
|
|
|
(In millions,
except share data)
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets:
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
908
|
|
$
801
|
Accounts
Receivable, less Allowance - $111 ($113 in 2018)
|
1,941
|
|
2,030
|
Inventories:
|
|
|
|
Raw Materials
|
530
|
|
569
|
Work in Process
|
143
|
|
152
|
Finished Products
|
2,178
|
|
2,135
|
|
2,851
|
|
2,856
|
Prepaid
Expenses and Other Current Assets
|
234
|
|
238
|
Total Current
Assets
|
5,934
|
|
5,925
|
Goodwill
|
565
|
|
569
|
Intangible
Assets
|
137
|
|
136
|
Deferred Income
Taxes
|
1,527
|
|
1,847
|
Other
Assets
|
959
|
|
1,136
|
Operating Lease
Right-of-Use Assets
|
855
|
|
--
|
Property, Plant and
Equipment, less Accumulated Depreciation – $10,488 ($10,161 in
2018)
|
7,208
|
|
7,259
|
Total Assets
|
$
17,185
|
|
$
16,872
|
|
|
|
|
Liabilities:
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable - Trade
|
$
2,908
|
|
$
2,920
|
Compensation
and Benefits
|
536
|
|
471
|
Other Current
Liabilities
|
734
|
|
737
|
Notes Payable
and Overdrafts
|
348
|
|
410
|
Operating
Lease Liabilities due Within One Year
|
199
|
|
--
|
Long Term Debt
and Finance Leases due Within One Year
|
562
|
|
243
|
Total Current Liabilities
|
5,287
|
|
4,781
|
Operating Lease
Liabilities
|
668
|
|
--
|
Long Term Debt and
Finance Leases
|
4,753
|
|
5,110
|
Compensation and
Benefits
|
1,334
|
|
1,345
|
Deferred Income
Taxes
|
90
|
|
95
|
Other Long Term
Liabilities
|
508
|
|
471
|
Total Liabilities
|
12,640
|
|
11,802
|
|
|
|
|
Commitments and
Contingent Liabilities
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Common Stock, no par
value:
|
|
|
|
Authorized, 450 million
shares, Outstanding shares – 233 million (232 million in
2018)
|
233
|
|
232
|
Capital
Surplus
|
2,141
|
|
2,111
|
Retained
Earnings
|
6,113
|
|
6,597
|
Accumulated Other
Comprehensive Loss
|
(4,136)
|
|
(4,076)
|
Goodyear Shareholders' Equity
|
4,351
|
|
4,864
|
Minority
Shareholders' Equity – Nonredeemable
|
194
|
|
206
|
Total
Shareholders' Equity
|
4,545
|
|
5,070
|
Total
Liabilities and Shareholders' Equity
|
$
17,185
|
|
$
16,872
|
|
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries Consolidated
Statements of Cash Flows (unaudited)
|
|
(In
millions)
|
Twelve Months
Ended
|
|
December
31,
|
|
2019
|
2018
|
Cash Flows from
Operating Activities:
|
|
|
Net Income
(Loss)
|
$
(297)
|
$
708
|
Adjustments to
Reconcile Net Income (Loss) to Cash Flows from Operating
Activities:
|
|
|
Depreciation and
Amortization
|
795
|
778
|
Amortization and Write-Off
of Debt Issuance Costs
|
15
|
15
|
Provision for Deferred
Income Taxes
|
323
|
131
|
Net Pension Curtailments and
Settlements
|
6
|
22
|
Net Rationalization
Charges
|
205
|
44
|
Rationalization
Payments
|
(59)
|
(174)
|
Net Gains on Asset
Sales
|
(16)
|
(1)
|
Gain on TireHub Transaction,
Net of Transaction Costs
|
--
|
(272)
|
Operating Lease
Expense
|
292
|
--
|
Operating Lease
Payments
|
(267)
|
--
|
Pension Contributions and
Direct Payments
|
(79)
|
(74)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
Accounts
Receivable
|
71
|
(172)
|
Inventories
|
6
|
(171)
|
Accounts Payable -
Trade
|
5
|
223
|
Compensation and
Benefits
|
184
|
(26)
|
Other Current
Liabilities
|
(50)
|
(181)
|
Other Assets and
Liabilities
|
73
|
66
|
Total Cash Flows from
Operating Activities
|
1,207
|
916
|
Cash Flows from
Investing Activities:
|
|
|
Capital
Expenditures
|
(770)
|
(811)
|
Asset
Dispositions
|
12
|
2
|
Short Term
Securities Acquired
|
(113)
|
(68)
|
Short Term
Securities Redeemed
|
106
|
68
|
Notes
Receivable
|
(7)
|
(55)
|
Other
Transactions
|
(28)
|
(3)
|
Total Cash Flows from
Investing Activities
|
(800)
|
(867)
|
Cash Flows from
Financing Activities:
|
|
|
Short Term
Debt and Overdrafts Incurred
|
1,880
|
1,944
|
Short Term
Debt and Overdrafts Paid
|
(1,933)
|
(1,795)
|
Long Term Debt
Incurred
|
5,942
|
6,455
|
Long Term Debt
Paid
|
(6,008)
|
(6,469)
|
Common Stock
Issued
|
1
|
4
|
Common Stock
Repurchased
|
--
|
(220)
|
Common Stock
Dividends Paid
|
(148)
|
(138)
|
Transactions
with Minority Interests in Subsidiaries
|
(26)
|
(31)
|
Debt Related
Costs and Other Transactions
|
(15)
|
7
|
Total Cash Flows from
Financing Activities
|
(307)
|
(243)
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
1
|
(43)
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
101
|
(237)
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of the Year
|
873
|
1,110
|
Cash, Cash
Equivalents and Restricted Cash at End of the Year
|
$
974
|
$
873
|
|
|
|
Non-GAAP Financial Measures (unaudited)
This earnings release presents Total Segment Operating Income
and Margin, Adjusted Net Income and Adjusted Diluted Earnings Per
Share (EPS), which are important financial measures for the company
but are not financial measures defined by U.S. GAAP, and should not
be construed as alternatives to corresponding financial measures
presented in accordance with U.S. GAAP.
Total Segment Operating Income is the sum of the individual
strategic business units' (SBUs') Segment Operating Income as
determined in accordance with U.S. GAAP. Total Segment Operating
Margin is Total Segment Operating Income divided by Net Sales as
determined in accordance with U.S. GAAP. Management believes that
Total Segment Operating Income and Margin are useful because they
represent the aggregate value of income created by the company's
SBUs and exclude items not directly related to the SBUs for
performance evaluation purposes. The most directly comparable U.S.
GAAP financial measure to Total Segment Operating Income is
Goodyear Net Income (Loss) and to Total Segment Operating Margin is
Return on Sales (which is calculated by dividing Goodyear Net
Income (Loss) by Net Sales).
Adjusted Net Income is Goodyear Net Income (Loss) as determined
in accordance with U.S. GAAP adjusted for certain significant
items. Adjusted Diluted EPS is the company's Adjusted Net Income
divided by Weighted Average Shares Outstanding-Diluted as
determined in accordance with U.S. GAAP. Management believes that
Adjusted Net Income and Adjusted Diluted EPS are useful because
they represent how management reviews the operating results of the
company excluding the impacts of rationalizations, asset
write-offs, accelerated depreciation, asset sales and certain other
significant items.
It should be noted that other companies may calculate
similarly-titled non-GAAP financial measures differently and, as a
result, the measures presented herein may not be comparable to such
similarly-titled measures reported by other companies.
See the tables below for reconciliations of historical Total
Segment Operating Income and Margin, Adjusted Net Income and
Adjusted Diluted EPS to the most directly comparable U.S. GAAP
financial measures.
Segment Operating
Income and Margin Reconciliation Table
|
|
|
Three Months
Ended
|
Twelve Months
Ended
|
December
31,
|
December
31,
|
|
|
|
(In
millions)
|
2019
|
2018
|
2019
|
2018
|
Total Segment
Operating Income
|
$242
|
$307
|
$945
|
$1,274
|
Rationalizations
|
(77)
|
(4)
|
(205)
|
(44)
|
Interest
Expense
|
(79)
|
(85)
|
(340)
|
(321)
|
Other Income
(Expense)
|
(24)
|
3
|
(98)
|
174
|
Asset
Write-offs and Accelerated Depreciation
|
(13)
|
(2)
|
(15)
|
(4)
|
Corporate
Incentive Compensation Plans
|
(22)
|
(7)
|
(50)
|
(13)
|
Retained
Expenses of Divested Operations
|
(3)
|
(2)
|
(10)
|
(9)
|
Other
|
(12)
|
(8)
|
(50)
|
(46)
|
Income before
Income Taxes
|
$12
|
$202
|
$177
|
$1,011
|
United States and
Foreign Taxes
|
411
|
92
|
474
|
303
|
Less: Minority
Shareholders Net Income (Loss)
|
(7)
|
--
|
14
|
15
|
Goodyear Net
Income (Loss)
|
$(392)
|
$110
|
$(311)
|
$693
|
|
|
|
|
|
Sales
|
$3,713
|
$3,876
|
$14,745
|
$15,475
|
Return on
Sales
|
(10.6)%
|
2.8%
|
(2.1)%
|
4.5%
|
Total Segment
Operating Margin
|
6.5%
|
7.9%
|
6.4%
|
8.2%
|
Adjusted Net
Income and Adjusted Diluted Earnings per Share Reconciliation
Tables
|
|
Fourth Quarter
2019
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net Income
(Loss)
|
Weighted
Average Shares
Outstanding-
Diluted*
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
12
|
$
411
|
$
(7)
|
$
(392)
|
234
|
$
(1.68)
|
Significant
Items:
|
|
|
|
|
|
|
Indirect Tax Settlements and Discrete
Tax
Items
|
(21)
|
(387)
|
10
|
356
|
|
1.52
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation
Charges
|
90
|
20
|
|
70
|
|
0.30
|
Beaumont, Texas Flooding
|
20
|
|
|
20
|
|
0.08
|
Pension Settlements
|
5
|
1
|
|
4
|
|
0.02
|
Gain on Acquisition, Net
of Transaction
Costs
|
(2)
|
|
|
(2)
|
|
(0.01)
|
Net Gains on Asset Sales
|
(12)
|
(1)
|
|
(11)
|
|
(0.04)
|
|
80
|
(367)
|
10
|
437
|
|
1.87
|
As
Adjusted
|
$
92
|
$
44
|
$
3
|
$
45
|
235
|
$
0.19
|
|
*Weighted Average
Shares Outstanding-Diluted for the calculation of as-reported
diluted EPS excludes 1 million weighted average equivalent shares
outstanding for stock options and other securities that were
anti-dilutive.
|
|
|
Fourth Quarter
2018
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net Income
|
Weighted
Average Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
202
|
$
92
|
-
|
$
110
|
235
|
$
0.47
|
Significant
Items:
|
|
|
|
|
|
|
Pension Settlements
|
9
|
2
|
|
7
|
|
0.03
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation Charges
|
6
|
2
|
|
4
|
|
0.02
|
Discrete Tax Items
|
(73)
|
(72)
|
|
(1)
|
|
(0.01)
|
|
(58)
|
(68)
|
|
10
|
|
0.04
|
As
Adjusted
|
$
144
|
$
24
|
-
|
$
120
|
235
|
$
0.51
|
|
|
Full Year
2019
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net Income
(Loss)
|
Weighted
Average Shares
Outstanding-
Diluted*
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
177
|
$
474
|
$
14
|
$
(311)
|
233
|
$
(1.33)
|
Significant
Items:
|
|
|
|
|
|
|
Indirect Tax Settlements and Discrete
Tax
Items
|
(27)
|
(394)
|
(7)
|
374
|
|
1.59
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation
Charges
|
220
|
42
|
1
|
177
|
|
0.76
|
Beaumont, Texas Flooding
|
25
|
|
|
25
|
|
0.11
|
Pension Settlements
|
5
|
1
|
|
4
|
|
0.02
|
Legal Claims Related to Discontinued
Operations
|
5
|
1
|
|
4
|
|
0.02
|
Net Insurance Recovery from
Hurricanes
|
(4)
|
(1)
|
|
(3)
|
|
(0.01)
|
Gain on Acquisition, Net
of Transaction
Costs
|
(2)
|
|
|
(2)
|
|
(0.01)
|
Net Gains on Asset Sales
|
(16)
|
(1)
|
|
(15)
|
|
(0.07)
|
|
206
|
(352)
|
(6)
|
564
|
|
2.41
|
As
Adjusted
|
$
383
|
$
122
|
$
8
|
$
253
|
234
|
$
1.08
|
|
*Weighted Average
Shares Outstanding-Diluted for the calculation of as-reported
diluted EPS excludes 1 million weighted average equivalent shares
outstanding for stock options and other securities that were
anti-dilutive.
|
|
|
Full Year
2018
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net Income
|
Weighted
Average Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
1,011
|
$
303
|
$
15
|
$
693
|
239
|
$
2.89
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-Offs,
and Accelerated
Depreciation Charges
|
48
|
12
|
1
|
35
|
|
0.15
|
Pension Settlements
|
22
|
5
|
|
17
|
|
0.07
|
Hurricane Effect
|
12
|
|
|
12
|
|
0.05
|
Pension Standard Change
|
9
|
2
|
|
7
|
|
0.03
|
Brazil Transportation Strike
|
7
|
2
|
|
5
|
|
0.02
|
Legal Claims Related to Discontinued
Operations
|
4
|
1
|
|
3
|
|
0.01
|
Insurance Recovery - Discontinued
Products
|
(3)
|
(1)
|
|
(2)
|
|
(0.01)
|
Net Gains on Asset Sales
|
(1)
|
|
|
(1)
|
|
(0.01)
|
Discrete Tax Items
|
(95)
|
(88)
|
|
(7)
|
|
(0.02)
|
Gain on TireHub Transaction, Net of
Transaction
Costs
|
(272)
|
(65)
|
|
(207)
|
|
(0.86)
|
|
(269)
|
(132)
|
1
|
(138)
|
|
(0.57)
|
As
Adjusted
|
$
742
|
$
171
|
$
16
|
$
555
|
239
|
$
2.32
|
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SOURCE The Goodyear Tire & Rubber Company