Venezuela Impacts Goodyear's 3Q Results in the Americas
Goodyear Tire & Rubber Co. posted segment operating income of $556 million for its third quarter ended Sept. 30, 2016. That brings the total to $1.5 billion for the first nine months of this year.
Both totals were negatively impacted by the deconsolidation of Venezuela.
In the Americas segment, Goodyear's tire units, sales, operating income and operating margin were down compared to 3Q 2015.
(in millions) 2016 2015
Tire units 18.6 20.3
Sales $2,070 $2,398
Operating income $305 $376
Operating margin 14.7% 15.7%
Third-quarter sales in the Americas segment decreased 14% from last year to $2.1 billion. Sales reflect an 8% decrease in tire unit volume -- replacement tire shipments were down 6%, while original equipment unit volume was down 15%.
"Excluding the impact of the deconsolidation of Venezuela and the sale of the former Goodyear Dunlop Tires North America Ltd. (GDTNA business, unit volume decreased 5%, driven primarily by consumer original equipment and replacement in Brazil and Canada," says Goodyear "Total U.S. consumer shipments were essentially flat, and U.S. commercial shipments were down 12%.
Third-quarter 2016 segment operating income of $305 million was down 19% from the prior year. The decrease was driven primarily by the deconsolidation of Venezuela and the impact of lower volume, according to Goodyear.
"The deconsolidation of Venezuela negatively impacted volumes by 0.4 million units, sales by $155 million and segment operating income by $39 million. The sale of GDTNA negatively impacted volumes by 0.2 million units, sales by $60 million and segment operating income by $16 million."
For more information on Goodyear's third-quarter 2016 financial results, check out this link: