AKRON, Ohio, July 27, 2018 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today reported results for
the second quarter and first half of 2018.
"We delivered strong operating performance in the quarter
highlighted by impressive volume growth in our mature markets where
we regained share, particularly in the more profitable 17 inch and
greater rim sizes in the U.S. and Europe," said Richard
J. Kramer, chairman, chief executive officer and president.
"Additionally, we achieved our price/mix and net cost savings goals
for the quarter."
"While our execution in the period was robust, macro headwinds
are intensifying – including rising raw material costs, a stronger
U.S. dollar and softening market conditions in China. We are adjusting our plans accordingly
to mitigate the impact of these challenges over the
intermediate-term. I remain confident that our strengthening
position in the marketplace, along with value created through our
strategic initiatives, will allow us to deliver on our 2020 plan,"
he added.
"Our new TireHub distribution joint venture in the U.S. is
performing exceptionally well out of the gate, and our shipments to
the wholesale channel are running ahead of our transition plans.
Goodyear's customer base has demonstrated its loyalty to our brand
and I am confident that TireHub's best-in-class service model,
together with added supply from our new Americas plant, will
enhance value for our retail and fleet customers," said Kramer.
Goodyear's second quarter 2018 sales were $3.8 billion, up 4 percent from a year ago,
driven by higher volume and improved price/mix.
Tire unit volumes totaled 39.0 million, a 4 percent increase
from 2017. Replacement tire shipments rose 5 percent, attributable
to increased industry demand and share gains in EMEA.
Original equipment unit volume was up 3 percent, primarily driven
by consumer demand in Asia Pacific
and global commercial shipments. Consumer replacement shipments in
the U.S. outpaced industry growth after adjusting for the impact of
the TireHub transition, driven by outperformance in the
17-inch-and-larger category.
Goodyear's second quarter 2018 net income was $157 million (65
cents per share), up from $147
million (58 cents per share) a
year ago. Second quarter 2018 adjusted net income was $150 million (62
cents per share), compared to $177
million (70 cents per share)
in 2017. Per share amounts are diluted.
The company reported second quarter segment operating income of
$324 million in 2018, down from
$369 million a year ago. The decrease
was driven by the impacts of higher raw material costs, general
cost inflation and lower price/mix, which were partially offset by
the benefits from cost savings initiatives and increased sales
volume.
Year-to-Date Results
Goodyear's sales for the first six months of 2018 were
$7.7 billion, a 4 percent increase
from the 2017 period, primarily due to favorable foreign currency
translation, improvements in price/mix and higher tire volume.
These increases were partially offset by lower sales in other
tire-related businesses.
Tire unit volumes totaled 78.0 million, up 1 percent from 2017,
driven by stronger consumer replacement shipments in EMEA, as well
as increased consumer OE demand in Asia
Pacific and higher global commercial shipments. Replacement
tire shipments increased 1 percent. Original equipment volume was
essentially flat.
Goodyear's year-to-date net income of $232 million (96
cents per share) is down from $313
million ($1.23 per share) in
the prior year's period. First half 2018 adjusted net income was
$272 million ($1.12 per share), compared to $366 million ($1.44
per share) in the prior year's period. Per share amounts are
diluted.
The company reported first half segment operating income of
$605 million in 2018, down from
$759 million a year ago. The decrease
was attributable to the effect of higher raw material costs and
reduced 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 2018 and
2017 periods.
Business Segment Results
Americas
|
|
|
Second
Quarter
|
|
Six
Months
|
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
2017
|
|
Tire Units
|
17.3
|
|
17.1
|
|
34.0
|
34.3
|
|
|
Sales
|
$ 2,018
|
|
$ 2,029
|
|
$
3,947
|
$ 3,987
|
|
|
Segment Operating
Income
|
154
|
|
218
|
|
281
|
434
|
|
|
Segment Operating
Margin
|
7.6%
|
|
10.7%
|
|
7.1%
|
10.9%
|
|
|
Americas' second quarter 2018 tire unit volume increased
approximately 2 percent. Sales of $2
billion were down slightly, reflecting unfavorable foreign
currency translation and reduced price/mix. Replacement tire
shipments rose 1.5 percent, led by strength in the U.S. despite the
impact of transitioning to TireHub. Original equipment unit volume
was up 2 percent, driven by growth in both commercial and consumer.
The company estimates that a national transportation strike in
Brazil restricted growth in the
Americas by about 1.5 percent.
Second quarter 2018 segment operating income of $154 million was down 29 percent from the prior
year. The decline was driven by the impact of reduced price/mix and
increased raw material costs. The lower price/mix reflects the
impact of last year's price reductions, which were partially offset
by strong growth in the U.S. within the 17-inch-and-larger
category.
Europe, Middle
East and Africa
|
|
|
Second
Quarter
|
|
Six
Months
|
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
2017
|
|
Tire Units
|
14.2
|
|
13.0
|
|
28.9
|
28.5
|
|
|
Sales
|
$ 1,260
|
|
$ 1,114
|
|
$
2,590
|
$ 2,353
|
|
|
Segment Operating
Income
|
100
|
|
80
|
|
178
|
181
|
|
|
Segment Operating
Margin
|
7.9%
|
|
7.2%
|
|
6.9%
|
7.7%
|
|
|
Europe, Middle East and Africa's second quarter 2018 sales increased
13 percent from last year to $1.3
billion, primarily attributable to increased volume.
Replacement tire shipments were up 13 percent, driven by the
consumer tire business, reflecting increased industry demand and
share gains. Original equipment unit volume rose 1 percent.
Second quarter 2018 segment operating income of $100 million was 25 percent higher than the prior
year, reflecting the benefits of increased sales volume and
favorable price/mix, partially offset by higher raw material
costs.
Asia
Pacific
|
|
|
Second
Quarter
|
|
Six
Months
|
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
2017
|
|
Tire Units
|
7.5
|
|
7.3
|
|
15.1
|
14.6
|
|
|
Sales
|
$ 563
|
|
$ 543
|
|
$
1,134
|
$ 1,045
|
|
|
Segment Operating
Income
|
70
|
|
71
|
|
146
|
144
|
|
|
Segment Operating
Margin
|
12.4%
|
|
13.1%
|
|
12.9%
|
13.8%
|
|
|
Asia Pacific's second quarter
2018 sales increased 4 percent from last year to $563 million, driven by increased volume and
improved price/mix. Tire unit volumes were 2 percent greater than
in the prior year's period. Original equipment unit volume rose 9
percent, driven by our consumer business in China. Replacement tire shipments were down 3
percent and were impacted by softening market conditions in
China.
Second quarter 2018 segment operating income of $70 million was down slightly from last year
reflecting lower price/mix, which more than offset the benefits
from increased volume.
2018 Outlook
The company expects its 2018 segment operating income to total
between $1.45 billion and
$1.5 billion. The company has reduced
its second-half outlook from the low end of the prior guidance to
reflect a $130 million increase in
raw material costs, a $60 million
unfavorable swing in foreign currency due to a stronger U.S.
dollar, and a $70 million headwind
due to softening market conditions in China.
Shareholder Returns
The company declared a quarterly dividend of 14 cents per share of common stock on
July 14, 2018, payable on
September 4, 2018 to shareholders of
record on August 1, 2018. The payout
represents an annual rate of 56 cents
per share.
As a part of its previously announced $2.1 billion share repurchase program, the
company repurchased nearly 3 million shares of its common stock for
$75 million during the second
quarter, bringing the full-year totals to $100 million and approximately 4 million shares.
Since its inception, the company has acquired 48 million shares for
$1.4 billion.
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.
Investors, members of the media and other interested persons can
access the conference call on the website or via telephone by
calling either (877) 876-9176 or (785) 424-1667 before 8:55 a.m. and providing the conference ID
"Goodyear." A taped replay will be available by calling (800)
839-2398 or (402) 220-7208. The replay will also remain available
on the website.
Goodyear is one of the world's largest tire companies. It
employs about 64,000 people and manufactures its products in 48
facilities in 22 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)
|
|
|
Three Months
Ended
|
|
Six
Months Ended
|
|
June
30,
|
|
June
30,
|
(In millions,
except per share amounts)
|
2018
|
2017
|
|
2018
|
2017
|
|
|
|
|
|
|
NET
SALES
|
$
3,841
|
$
3,686
|
|
$
7,671
|
$
7,385
|
|
|
|
|
|
|
Cost of Goods
Sold
|
2,949
|
2,785
|
|
5,925
|
5,545
|
Selling,
Administrative and General Expense
|
588
|
579
|
|
1,179
|
1,155
|
Rationalizations
|
(2)
|
27
|
|
35
|
56
|
Interest
Expense
|
78
|
89
|
|
154
|
176
|
Other (Income)
Expense
|
45
|
16
|
|
82
|
24
|
|
|
|
|
|
|
Income before Income
Taxes
|
183
|
190
|
|
296
|
429
|
United States and
Foreign Tax Expense
|
19
|
36
|
|
52
|
106
|
|
|
|
|
|
|
Net Income
|
164
|
154
|
|
244
|
323
|
Less: Minority
Shareholders' Net Income
|
7
|
7
|
|
12
|
10
|
|
|
|
|
|
|
Goodyear Net
Income
|
$
157
|
$
147
|
|
$
232
|
$
313
|
|
|
|
|
|
|
Goodyear Net
Income
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.66
|
$
0.58
|
|
$
0.97
|
$
1.24
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
239
|
252
|
|
240
|
252
|
|
|
|
|
|
|
Diluted
|
$
0.65
|
$
0.58
|
|
$
0.96
|
$
1.23
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
241
|
256
|
|
242
|
256
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
0.14
|
$
0.10
|
|
$
0.28
|
$
0.20
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
|
Consolidated
Balance Sheets (unaudited)
|
|
(In millions,
except share data)
|
June
30,
|
|
December
31,
|
|
2018
|
|
2017
|
Assets:
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
975
|
|
$
1,043
|
Accounts
Receivable, less Allowance - $108 ($116 in 2017)
|
2,388
|
|
2,025
|
Inventories:
|
|
|
|
Raw Materials
|
530
|
|
466
|
Work in Process
|
160
|
|
142
|
Finished Products
|
2,251
|
|
2,179
|
|
2,941
|
|
2,787
|
Prepaid
Expenses and Other Current Assets
|
265
|
|
224
|
Total Current
Assets
|
6,569
|
|
6,079
|
Goodwill
|
576
|
|
595
|
Intangible
Assets
|
138
|
|
139
|
Deferred Income
Taxes
|
2,035
|
|
2,008
|
Other
Assets
|
804
|
|
792
|
Property, Plant and
Equipment
less
Accumulated Depreciation - $10,110 ($10,078 in 2017)
|
7,233
|
|
7,451
|
Total Assets
|
$
17,355
|
|
$
17,064
|
|
|
|
|
Liabilities:
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable-Trade
|
$
2,880
|
|
$
2,807
|
Compensation
and Benefits
|
511
|
|
539
|
Other Current
Liabilities
|
821
|
|
1,026
|
Notes Payable
and Overdrafts
|
335
|
|
262
|
Long Term Debt
and Capital Leases due Within One Year
|
286
|
|
391
|
Total Current Liabilities
|
4,833
|
|
5,025
|
Long Term Debt and
Capital Leases
|
5,726
|
|
5,076
|
Compensation and
Benefits
|
1,369
|
|
1,515
|
Deferred Income
Taxes
|
99
|
|
100
|
Other Long Term
Liabilities
|
484
|
|
498
|
Total Liabilities
|
12,511
|
|
12,214
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Common Stock, no par
value:
|
|
|
|
Authorized, 450 million
shares, Outstanding shares – 237 and 240 million in 2018
and 2017 after deducting 41 and 38 million treasury
shares in 2018 and 2017
|
237
|
|
240
|
Capital
Surplus
|
2,214
|
|
2,295
|
Retained
Earnings
|
6,208
|
|
6,044
|
Accumulated Other
Comprehensive Loss
|
(4,022)
|
|
(3,976)
|
Goodyear Shareholders' Equity
|
4,637
|
|
4,603
|
Minority
Shareholders' Equity – Nonredeemable
|
207
|
|
247
|
Total
Shareholders' Equity
|
4,844
|
|
4,850
|
Total
Liabilities and Shareholders' Equity
|
$
17,355
|
|
$
17,064
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Statements of Cash Flows (unaudited)
|
(In
millions)
|
Six Months
Ended
|
|
June
30,
|
|
2018
|
2017
|
Cash Flows from
Operating Activities:
|
|
|
Net
Income
|
$
244
|
$
323
|
Adjustments to
Reconcile Net Income to Cash Flows from Operating
Activities:
|
|
|
Depreciation and
Amortization
|
392
|
387
|
Amortization and Write-Off
of Debt Issuance Costs
|
8
|
14
|
Provision for Deferred
Income Taxes
|
(55)
|
45
|
Net Pension Curtailments and
Settlements
|
3
|
1
|
Net Rationalization
Charges
|
35
|
56
|
Rationalization
Payments
|
(131)
|
(54)
|
Net (Gains) Losses on Asset
Sales
|
--
|
(13)
|
Pension Contributions and
Direct Payments
|
(42)
|
(45)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
Accounts
Receivable
|
(475)
|
(470)
|
Inventories
|
(222)
|
(482)
|
Accounts Payable -
Trade
|
253
|
190
|
Compensation and
Benefits
|
(30)
|
(67)
|
Other Current
Liabilities
|
(100)
|
27
|
Other Assets and
Liabilities
|
36
|
(97)
|
Total Cash Flows from
Operating Activities
|
(84)
|
(185)
|
Cash Flows from
Investing Activities:
|
|
|
Capital
Expenditures
|
(442)
|
(497)
|
Asset
Dispositions
|
2
|
2
|
Short Term
Securities Acquired
|
(30)
|
(43)
|
Short Term
Securities Redeemed
|
38
|
43
|
Other
Transactions
|
(38)
|
(3)
|
Total Cash Flows from
Investing Activities
|
(470)
|
(498)
|
Cash Flows from
Financing Activities:
|
|
|
Short Term
Debt and Overdrafts Incurred
|
1,012
|
290
|
Short Term
Debt and Overdrafts Paid
|
(920)
|
(303)
|
Long Term Debt
Incurred
|
3,544
|
3,456
|
Long Term Debt
Paid
|
(2,933)
|
(2,905)
|
Common Stock
Issued
|
3
|
11
|
Common Stock
Repurchased
|
(100)
|
(30)
|
Common Stock
Dividends Paid
|
(67)
|
(50)
|
Transactions
with Minority Interests in Subsidiaries
|
(26)
|
(5)
|
Debt Related
Costs and Other Transactions
|
6
|
(38)
|
Total Cash Flows from
Financing Activities
|
519
|
426
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(25)
|
37
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(60)
|
(220)
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of the
Period
|
1,110
|
1,189
|
Cash, Cash
Equivalents and Restricted Cash at End of the Period
|
$
1,050
|
$
969
|
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 and to Total
Segment Operating Margin is Return on Sales (which is calculated by
dividing Goodyear Net Income by Net Sales).
Adjusted Net Income is Goodyear Net Income 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.
The company is unable to present a quantitative reconciliation
of its forward-looking non-GAAP financial measure, Total Segment
Operating Income, to the most directly comparable U.S. GAAP
financial measure, Goodyear Net Income, because management cannot
reliably predict all of the necessary components of Goodyear Net
Income without unreasonable effort. Goodyear Net Income includes
several significant items that are not included in Total Segment
Operating Income, such as rationalization charges, other (income)
expense, pension curtailments and settlements, and income taxes.
The decisions and events that typically lead to the recognition of
these and other similar non-GAAP adjustments, such as a decision to
exit part of the company's business, acquisitions and dispositions,
foreign currency exchange gains and losses, financing fees, actions
taken to manage the company's pension liabilities, and the
recording or release of tax valuation allowances, are inherently
unpredictable as to if or when they may occur. The inability to
provide a reconciliation is due to that unpredictability and the
related difficulty in assessing the potential financial impact of
the non-GAAP adjustments. For the same reasons, the company is
unable to address the probable significance of the unavailable
information, which could be material to the company's future
financial results.
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
|
Six Months
Ended
|
June
30,
|
June
30,
|
|
|
|
(In
millions)
|
2018
|
2017
|
2018
|
2017
|
Total Segment
Operating Income
|
$324
|
$369
|
$605
|
$759
|
Rationalizations
|
(2)
|
27
|
35
|
56
|
Interest
Expense
|
78
|
89
|
154
|
176
|
Other (Income)
Expense
|
45
|
16
|
82
|
24
|
Asset
Write-offs and Accelerated Depreciation
|
1
|
21
|
2
|
29
|
Corporate
Incentive Compensation Plans
|
3
|
12
|
7
|
27
|
Intercompany
Profit Elimination
|
(1)
|
(2)
|
(4)
|
(5)
|
Retained
Expenses of Divested Operations
|
2
|
3
|
5
|
6
|
Other
|
15
|
13
|
28
|
17
|
Income before
Income Taxes
|
$183
|
$190
|
$296
|
$429
|
United States and
Foreign Taxes
|
19
|
36
|
52
|
106
|
Less: Minority
Shareholders Net Income
|
7
|
7
|
12
|
10
|
Goodyear Net
Income
|
$157
|
$147
|
$232
|
$313
|
|
|
|
|
|
Sales
|
$3,841
|
$3,686
|
$7,671
|
$7,385
|
Return on
Sales
|
4.1%
|
4.0%
|
3.0%
|
4.2%
|
Total Segment
Operating Margin
|
8.4%
|
10.0%
|
7.9%
|
10.3%
|
Adjusted Net
Income and Adjusted Diluted Earnings per Share Reconciliation
Tables
|
|
Second 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
|
$
183
|
$
19
|
$
7
|
$
157
|
241
|
$
0.65
|
Significant
Items:
|
|
|
|
|
|
|
Transaction Costs Related to TireHub
|
10
|
2
|
|
8
|
|
0.03
|
Hurricane Effect
|
8
|
|
|
8
|
|
0.03
|
Brazil Transportation Strike
|
7
|
2
|
|
5
|
|
0.02
|
Pension Settlement
|
3
|
1
|
|
2
|
|
0.01
|
Net Gains on Asset Sales
|
(2)
|
(1)
|
|
(1)
|
|
(0.01)
|
Insurance Recovery –
Discontinued
Products
|
(2)
|
(1)
|
|
(1)
|
|
(0.01)
|
Discrete Tax Items
|
|
28
|
|
(28)
|
|
(0.10)
|
|
24
|
31
|
|
(7)
|
|
(0.03)
|
As
Adjusted
|
$
207
|
$
50
|
$
7
|
$
150
|
241
|
$
0.62
|
|
|
Second Quarter
2017
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear Net
Income
|
Weighted
Average Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
190
|
$
36
|
$
7
|
$
147
|
256
|
$
0.58
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
48
|
12
|
|
36
|
|
0.14
|
Debt Redemption Charges
|
31
|
12
|
|
19
|
|
0.07
|
Net Gains on Asset Sales
|
(12)
|
|
|
(12)
|
|
(0.04)
|
Discrete Tax Items
|
(5)
|
8
|
|
(13)
|
|
(0.05)
|
|
62
|
32
|
|
30
|
|
0.12
|
As
Adjusted
|
$
252
|
$
68
|
$
7
|
$
177
|
256
|
$
0.70
|
|
|
First Six Months
2018
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear Net
Income
|
Weighted
Average Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
296
|
$
52
|
$
12
|
$
232
|
242
|
$
0.96
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-Offs,
and Accelerated
Depreciation
|
37
|
10
|
|
27
|
|
0.11
|
Charges
|
|
|
|
|
|
|
Hurricane Effect
|
11
|
|
|
11
|
|
0.05
|
Transaction Costs Related to TireHub
|
14
|
3
|
|
11
|
|
0.04
|
Pension Standard Change
|
9
|
2
|
|
7
|
|
0.03
|
Brazil Transportation Strike
|
7
|
2
|
|
5
|
|
0.02
|
Pension Settlement
|
3
|
1
|
|
2
|
|
0.01
|
Insurance Recovery –
Discontinued
Products
|
(2)
|
(1)
|
|
(1)
|
|
(0.01)
|
Discrete Tax Items
|
|
22
|
|
(22)
|
|
(0.09)
|
|
79
|
39
|
|
40
|
|
0.16
|
As
Adjusted
|
$
375
|
$
91
|
$
12
|
$
272
|
242
|
$
1.12
|
|
|
First Six Months
2017
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net Income
|
Weighted
Average Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
429
|
$
106
|
$
10
|
$
313
|
256
|
$
1.23
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
85
|
24
|
|
61
|
|
0.24
|
Debt Redemption Charges
|
31
|
12
|
|
19
|
|
0.07
|
Net Gains on Asset Sales
|
(13)
|
(1)
|
|
(12)
|
|
(0.04)
|
Discrete Tax Items
|
(5)
|
10
|
|
(15)
|
|
(0.06)
|
|
98
|
45
|
|
53
|
|
0.21
|
As
Adjusted
|
$
527
|
$
151
|
$
10
|
$
366
|
256
|
$
1.44
|
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SOURCE The Goodyear Tire & Rubber Company