AKRON, Ohio, Oct. 26, 2018 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today reported results for
the third quarter of 2018.
"We continued to improve the operating performance in our key
mature markets, driven by strong volume growth, including
significant increases 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. "These gains contributed to
the improving momentum in our two largest segments, as EMEA
delivered operating income growth of more than 20 percent and
Americas turned in its best year-over-year performance since
2016."
"We are pleased to see that in total, our operating performance
was relatively stable in a period of increasing volatility. The
issues that began to emerge in the second quarter have persisted –
including a stronger U.S. dollar and deteriorating market
conditions in China. Additionally,
newly enacted emission standards in Europe, growing economic volatility in
Latin America, and a changing
global trade environment have added incremental challenges for the
industry. We have successfully navigated through similar conditions
in the past, and I am confident that our strategic plan and the
investments we are making are improving our long-term competitive
position."
Goodyear's third quarter 2018 sales were $3.9 billion, up slightly compared with a year
ago, driven by higher volume, improved price/mix and higher sales
in other tire-related businesses. These increases were
substantially offset by unfavorable foreign currency
translation.
Tire unit volumes totaled 40.5 million, up 2 percent from 2017.
Replacement tire shipments increased 4 percent, driven by strength
in Americas and EMEA. Original equipment unit volume decreased 4
percent, primarily driven by lower consumer demand in China.
Goodyear's third quarter 2018 net income was $351 million ($1.48
per share), up from $129 million
(50 cents per share) a year ago. The
increase was primarily driven by a $287
million net gain resulting from the company's TireHub
transaction, which was completed during the quarter. Third quarter
2018 adjusted net income was $163
million (68 cents per share),
compared to $177 million
(70 cents per share) in 2017. Per
share amounts are diluted.
The company reported segment operating income of $362 million in 2018, virtually flat with
$367 million a year ago.
Year-to-Date Results
Goodyear's net sales for the first nine months of 2018 were
$11.6 billion, a 3 percent increase
from the 2017 period, primarily due to improvements in price/mix
and higher unit volumes.
Tire unit volumes totaled 118.5 million, up 1 percent from 2017.
Replacement tire shipments increased 2 percent, driven by stronger
consumer replacement shipments in EMEA and Americas. OE tire volume
decreased 1 percent, with declines in EMEA and Americas partially
offset by increases in Asia
Pacific during the first half of the year.
Goodyear's year-to-date net income of $583 million ($2.42
per share) is up from $442 million
($1.73 per share) in the prior year's
period. Adjusted net income for the first nine months was
$434 million ($1.80 per share), compared to $543 million ($2.13
per share) in the prior year's period. Per share amounts are
diluted.
The company reported segment operating income of $967 million for the first nine months of 2018,
down from $1.1 billion a year ago.
The decrease was largely attributable to the effect of higher raw
material costs and reduced price/mix, partially offset by net cost
savings and the impact of higher volumes.
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
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Tire Units
|
17.8
|
|
17.1
|
|
51.8
|
|
51.4
|
Sales
|
$ 2,107
|
|
$ 2,041
|
|
$ 6,054
|
|
$ 6,028
|
Segment Operating
Income
|
194
|
|
196
|
|
475
|
|
630
|
Segment Operating
Margin
|
9.2%
|
|
9.6%
|
|
7.8%
|
|
10.5%
|
Americas' third quarter 2018 tire unit volume was up 4 percent.
Sales of $2.1 billion were up 3
percent, primarily related to increased volume, higher third-party
chemical sales and increases in price/mix. These increases were
partially offset by unfavorable foreign currency translation.
Replacement tire shipments were up 5 percent, led by 11 percent
growth in the U.S. consumer business, which more than offset a 6
percent decline in Brazil. U.S.
sell-out was up 5 percent, the third straight quarter of solid
growth. Original equipment unit volume was relatively flat compared
to the prior year's third quarter.
Third quarter 2018 segment operating income of $194 million was nearly flat compared to the
prior year. The modest decline was driven by the impact of reduced
price/mix, higher conversion costs, unfavorable foreign currency
translation and increased raw material costs, substantially offset
by a favorable indirect tax settlement in Brazil and higher tire volumes.
Europe, Middle East and Africa
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Tire Units
|
15.2
|
|
14.9
|
|
44.1
|
|
43.4
|
Sales
|
$ 1,290
|
|
$ 1,311
|
|
$ 3,880
|
|
$ 3,664
|
Segment Operating
Income
|
111
|
|
90
|
|
289
|
|
271
|
Segment Operating
Margin
|
8.6%
|
|
6.9%
|
|
7.4%
|
|
7.4%
|
Europe, Middle East and Africa's third quarter 2018 sales decreased
approximately 2 percent from last year to $1.3 billion, primarily attributable to
unfavorable foreign currency translation, partially offset by
increased volume and favorable price/mix. Tire unit volumes
increased 3 percent. Replacement tire shipments were up 4 percent,
driven by increased customer demand in the consumer tire business.
Original equipment unit volume decreased 1 percent.
Third quarter 2018 segment operating income of $111 million was 23 percent higher than the prior
year's quarter, driven by lower raw material costs, the impact of
higher volume and improved price/mix, partially offset by higher
selling, administrative and general expenses and unfavorable
foreign currency translation.
Asia Pacific
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Tire Units
|
7.5
|
|
7.8
|
|
22.6
|
|
22.4
|
Sales
|
$
531
|
|
$
569
|
|
$ 1,665
|
|
$ 1,614
|
Segment Operating
Income
|
57
|
|
81
|
|
203
|
|
225
|
Segment Operating
Margin
|
10.7%
|
|
14.2%
|
|
12.2%
|
|
13.9%
|
Asia Pacific's third quarter
2018 sales decreased 7 percent from last year to $531 million, primarily reflecting lower tire
volumes and unfavorable foreign currency translation. Tire unit
volumes were down 4 percent. Replacement tire shipments were stable
despite weakness in China compared
with the same quarter a year ago. Original equipment unit volume
was down 11 percent, primarily due to expected declines in our
consumer tire business in China.
Third quarter 2018 segment operating income of $57 million was down 30 percent from last year
due to higher selling, administrative and general expenses,
partially driven by higher bad debt expense, lower volume and
reduced price/mix.
2018 Outlook
The company revised its expectations for 2018 segment operating
income to reflect the increasingly challenging industry
environment. The company expects its segment operating income
to exceed $1.3 billion. This outlook
reflects the impact of higher raw material costs, which includes
the negative impact of transactional currency headwinds, further
industry weakness in China and
economic volatility in Brazil.
Shareholder Returns
The company announced a 14 percent increase in its quarterly
dividend to 16 cents per share of
common stock on Oct. 10, 2018,
payable on Dec. 3, 2018 to
shareholders of record on Nov. 1,
2018. The payout represents an annual rate of 58 cents per share for 2018 and 64 cents per share for 2019.
As a part of its previously announced $2.1 billion share repurchase program, the
company repurchased 4.2 million shares of its common stock for
$100 million during the third
quarter. Since its inception, purchases under the program total 52
million shares for $1.5 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.
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 (866) 952-8559 or (785) 424-1743 before 8:55 a.m. and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800)
839-1229 or (402) 220-0459. 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
|
|
Nine
Months
Ended
|
|
September
30,
|
|
September
30,
|
(In millions,
except per share amounts)
|
2018
|
2017
|
|
2018
|
2017
|
|
|
|
|
|
|
NET
SALES
|
$
3,928
|
$
3,921
|
|
$
11,599
|
$
11,306
|
|
|
|
|
|
|
Cost of Goods
Sold
|
3,028
|
3,054
|
|
8,953
|
8,599
|
Selling,
Administrative and General Expense
|
553
|
545
|
|
1,732
|
1,700
|
Rationalizations
|
5
|
46
|
|
40
|
102
|
Interest
Expense
|
82
|
84
|
|
236
|
260
|
Other (Income)
Expense
|
(253)
|
30
|
|
(171)
|
54
|
|
|
|
|
|
|
Income before Income
Taxes
|
513
|
162
|
|
809
|
591
|
United States and
Foreign Tax Expense
|
159
|
30
|
|
211
|
136
|
|
|
|
|
|
|
Net Income
|
354
|
132
|
|
598
|
455
|
Less: Minority
Shareholders' Net Income
|
3
|
3
|
|
15
|
13
|
|
|
|
|
|
|
Goodyear Net
Income
|
$
351
|
$
129
|
|
$
583
|
$
442
|
|
|
|
|
|
|
Goodyear Net
Income
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.49
|
$
0.52
|
|
$
2.45
|
$
1.76
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
236
|
250
|
|
238
|
251
|
|
|
|
|
|
|
Diluted
|
$
1.48
|
$
0.50
|
|
$
2.42
|
$
1.73
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
238
|
254
|
|
241
|
255
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
0.14
|
$
0.10
|
|
$
0.42
|
$
0.30
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries
Consolidated Balance Sheets (unaudited)
|
|
|
|
(In millions,
except share data)
|
September
30,
|
|
December
31,
|
|
2018
|
|
2017
|
Assets:
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
896
|
|
$
1,043
|
Accounts
Receivable, less Allowance - $117 ($116 in 2017)
|
2,670
|
|
2,025
|
Inventories:
|
|
|
|
Raw Materials
|
567
|
|
466
|
Work in Process
|
155
|
|
142
|
Finished Products
|
2,216
|
|
2,179
|
|
2,938
|
|
2,787
|
Prepaid
Expenses and Other Current Assets
|
249
|
|
224
|
Total Current
Assets
|
6,753
|
|
6,079
|
Goodwill
|
572
|
|
595
|
Intangible
Assets
|
137
|
|
139
|
Deferred Income
Taxes
|
1,908
|
|
2,008
|
Other
Assets
|
1,089
|
|
792
|
Property, Plant and
Equipment
less
Accumulated Depreciation - $10,199 ($10,078 in 2017)
|
7,132
|
|
7,451
|
Total Assets
|
$
17,591
|
|
$
17,064
|
|
|
|
|
Liabilities:
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable-Trade
|
$
2,819
|
|
$
2,807
|
Compensation
and Benefits
|
517
|
|
539
|
Other Current
Liabilities
|
795
|
|
1,026
|
Notes Payable
and Overdrafts
|
445
|
|
262
|
Long Term Debt
and Capital Leases due Within One Year
|
471
|
|
391
|
Total Current Liabilities
|
5,047
|
|
5,025
|
Long Term Debt and
Capital Leases
|
5,604
|
|
5,076
|
Compensation and
Benefits
|
1,350
|
|
1,515
|
Deferred Income
Taxes
|
95
|
|
100
|
Other Long Term
Liabilities
|
495
|
|
498
|
Total Liabilities
|
12,591
|
|
12,214
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Common Stock, no par
value:
|
|
|
|
Authorized, 450 million
shares, Outstanding shares – 233 and 240 million in 2018
and 2017 after deducting 45 and 38 million treasury shares
in 2018 and 2017
|
233
|
|
240
|
Capital
Surplus
|
2,125
|
|
2,295
|
Retained
Earnings
|
6,525
|
|
6,044
|
Accumulated Other
Comprehensive Loss
|
(4,083)
|
|
(3,976)
|
Goodyear Shareholders' Equity
|
4,800
|
|
4,603
|
Minority
Shareholders' Equity – Nonredeemable
|
200
|
|
247
|
Total
Shareholders' Equity
|
5,000
|
|
4,850
|
Total
Liabilities and Shareholders' Equity
|
$
17,591
|
|
$
17,064
|
|
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries
Consolidated
Statements of Cash Flows (unaudited)
|
|
(In
millions)
|
Nine Months
Ended
|
|
September
30,
|
|
2018
|
2017
|
Cash Flows from
Operating Activities:
|
|
|
Net
Income
|
$
598
|
$
455
|
Adjustments to
Reconcile Net Income to Cash Flows from Operating
Activities:
|
|
|
Depreciation and
Amortization
|
589
|
586
|
Amortization and Write-Off
of Debt Issuance Costs
|
11
|
17
|
Provision for Deferred
Income Taxes
|
59
|
33
|
Net Pension Curtailments and
Settlements
|
13
|
13
|
Net Rationalization
Charges
|
40
|
102
|
Rationalization
Payments
|
(151)
|
(96)
|
Net (Gains) Losses on Asset
Sales
|
(1)
|
(14)
|
Gain on TireHub Transaction,
Net of Transaction Costs
|
(273)
|
--
|
Pension Contributions and
Direct Payments
|
(56)
|
(67)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
Accounts
Receivable
|
(807)
|
(807)
|
Inventories
|
(254)
|
(254)
|
Accounts Payable -
Trade
|
235
|
5
|
Compensation and
Benefits
|
7
|
(27)
|
Other Current
Liabilities
|
(119)
|
(51)
|
Other Assets and
Liabilities
|
85
|
(49)
|
Total Cash Flows from
Operating Activities
|
(24)
|
(154)
|
Cash Flows from
Investing Activities:
|
|
|
Capital
Expenditures
|
(615)
|
(683)
|
Asset
Dispositions
|
2
|
9
|
Short Term
Securities Acquired
|
(61)
|
(51)
|
Short Term
Securities Redeemed
|
61
|
51
|
Notes
Receivable
|
(50)
|
--
|
Other
Transactions
|
(1)
|
(1)
|
Total Cash Flows from
Investing Activities
|
(664)
|
(675)
|
Cash Flows from
Financing Activities:
|
|
|
Short Term
Debt and Overdrafts Incurred
|
1,458
|
544
|
Short Term
Debt and Overdrafts Paid
|
(1,267)
|
(523)
|
Long Term Debt
Incurred
|
4,704
|
4,972
|
Long Term Debt
Paid
|
(3,992)
|
(4,193)
|
Common Stock
Issued
|
4
|
12
|
Common Stock
Repurchased
|
(200)
|
(205)
|
Common Stock
Dividends Paid
|
(100)
|
(75)
|
Transactions
with Minority Interests in Subsidiaries
|
(27)
|
(6)
|
Debt Related
Costs and Other Transactions
|
(3)
|
(69)
|
Total Cash Flows from
Financing Activities
|
577
|
457
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(37)
|
51
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
(148)
|
(321)
|
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
|
$
962
|
$
868
|
|
|
|
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
|
Nine Months
Ended
|
September
30,
|
September
30,
|
|
|
|
(In
millions)
|
2018
|
2017
|
2018
|
2017
|
Total Segment
Operating Income
|
$362
|
$367
|
$967
|
$1,126
|
Rationalizations
|
5
|
46
|
40
|
102
|
Interest
Expense
|
82
|
84
|
236
|
260
|
Other (Income)
Expense
|
(253)
|
30
|
(171)
|
54
|
Asset
Write-offs and Accelerated Depreciation
|
--
|
10
|
2
|
39
|
Corporate
Incentive Compensation Plans
|
(1)
|
--
|
6
|
27
|
Intercompany
Profit Elimination
|
2
|
21
|
(2)
|
16
|
Retained
Expenses of Divested Operations
|
2
|
3
|
7
|
9
|
Other
|
12
|
11
|
40
|
28
|
Income before
Income Taxes
|
$513
|
$162
|
$809
|
$591
|
United States and
Foreign Taxes
|
159
|
30
|
211
|
136
|
Less: Minority
Shareholders Net Income
|
3
|
3
|
15
|
13
|
Goodyear Net
Income
|
$351
|
$129
|
$583
|
$442
|
|
|
|
|
|
Sales
|
$3,928
|
$3,921
|
$11,599
|
$11,306
|
Return on
Sales
|
8.9%
|
3.3%
|
5.0%
|
3.9%
|
Total Segment
Operating Margin
|
9.2%
|
9.4%
|
8.3%
|
10.0%
|
Adjusted Net
Income and Adjusted Diluted Earnings per Share Reconciliation
Tables
|
|
|
Third 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
|
$
513
|
$
159
|
$
3
|
$
351
|
238
|
$
1.48
|
Significant
Items:
|
|
|
|
|
|
|
Discrete Tax Items
|
(22)
|
(36)
|
|
14
|
|
0.05
|
Pension Settlement
|
10
|
2
|
|
8
|
|
0.03
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation Charges
|
5
|
1
|
|
4
|
|
0.01
|
Legal Claims Related to Discontinued
Operations
|
4
|
1
|
|
3
|
|
0.01
|
Hurricane Effect
|
2
|
|
|
2
|
|
0.01
|
Gain on TireHub Transaction, Net of
Transaction
Costs
|
(287)
|
(68)
|
|
(219)
|
|
(0.91)
|
|
(288)
|
(100)
|
|
(188)
|
|
(0.80)
|
As
Adjusted
|
$
225
|
$
59
|
$
3
|
$
163
|
238
|
$
0.68
|
|
|
|
Third 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
|
$
162
|
$
30
|
$
3
|
$
129
|
254
|
$
0.50
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation
Charges
|
56
|
18
|
|
38
|
|
0.15
|
Hurricane Effect
|
17
|
2
|
|
15
|
|
0.06
|
Pension Settlement
|
13
|
5
|
|
8
|
|
0.03
|
Insurance Recovery - Discontinued
Products
|
(5)
|
(2)
|
|
(3)
|
|
(0.01)
|
Discrete Tax Items
|
2
|
12
|
|
(10)
|
|
(0.03)
|
|
83
|
35
|
|
48
|
|
0.20
|
As
Adjusted
|
$
245
|
$
65
|
$
3
|
$
177
|
254
|
$
0.70
|
|
|
|
First Nine 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
|
$
809
|
$
211
|
$
15
|
$
583
|
241
|
$
2.42
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-Offs, and
Accelerated
Depreciation Charges
|
42
|
11
|
|
31
|
|
0.13
|
Hurricane Effect
|
12
|
|
|
12
|
|
0.05
|
Pension Settlement
|
13
|
3
|
|
10
|
|
0.04
|
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)
|
Discrete Tax Items
|
(22)
|
(15)
|
|
(7)
|
|
(0.03)
|
Gain on TireHub Transaction, Net of
Transaction
Costs
|
(273)
|
(65)
|
|
(208)
|
|
(0.86)
|
|
(211)
|
(62)
|
|
(149)
|
|
(0.62)
|
As
Adjusted
|
$
598
|
$
149
|
$
15
|
$
434
|
241
|
$
1.80
|
|
|
|
First Nine 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
|
$
591
|
$
136
|
$
13
|
$
442
|
255
|
$
1.73
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation
Charges
|
141
|
42
|
1
|
98
|
|
0.39
|
Debt Redemption Charges
|
31
|
12
|
|
19
|
|
0.07
|
Hurricane Effect
|
17
|
2
|
|
15
|
|
0.06
|
Pension Settlement
|
13
|
5
|
|
8
|
|
0.03
|
Insurance Recovery - Discontinued
Products
|
(5)
|
(2)
|
|
(3)
|
|
(0.01)
|
Net Gains on Asset Sales
|
(14)
|
(2)
|
|
(12)
|
|
(0.05)
|
Discrete Tax Items
|
(2)
|
22
|
|
(24)
|
|
(0.09)
|
|
181
|
79
|
1
|
101
|
|
0.40
|
As
Adjusted
|
$
772
|
$
215
|
$
14
|
$
543
|
255
|
$
2.13
|
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SOURCE The Goodyear Tire & Rubber Company