AKRON—Buoyed by strong performances in its Americas and Asia Pacific consumer tire operations, Goodyear posted $479 million in fourth quarter segment operating earnings and $2 billion in operating income for the year ended Dec. 31.
Sales for the year declined 7.8 percent to $15.2 billion and fell 7.9 percent to $3.7 billion in the quarter, reflecting primarily the deconsolidation of the company's subsidiary in Venezuela as well as unfavorable currency translation, the Akron-based tire maker said.
"We delivered solid net income and record core segment operation income in 2016, driven by strong performance in our Americas and Asia Pacific consumer tire businesses," Richard Kramer, Goodyear chairman, CEO and president said. "Our results demonstrate continued sustainable earnings growth and disciplined execution of our strategy."
Net income rose to $1.26 billion for the year and to $561 million for the quarter, reversing a fourth quarter 2015 loss.
For 2017, Kramer said Goodyear expects raw material inflation to be signficant, but that the company has demonstrated through its innovation, award-winning products and strong global brand the ability to offset raw material inflation over time.
In 2016 Goodyear's tire unit volumes totaled 166.1 million, essentially unchanged from 2015. Of these, replacement shipments grew 2 percent and original equipment unit volume declined 4 percent.
Excluding the impact of the deconsolidation of the operations in Venezuela, unit volumes increased 1 percent, the company said.