AKRON—The price of Goodyear's stock fell Feb. 11, hours after the Akron tire maker reported sales and earnings that fell short of expectations.
The company reported a net loss of $392 million, or $1.68 per share in the fourth quarter, compared to a profit of 47 cents per share in the same period last year, according to company reports.
On an adjusted basis, the company reported a profit of $45 million, or 19 cents per share, whereas analysts had been predicting earnings of 52 cents per share, Nasdaq reported after the company released its earnings.
The company's share price was down more than 10 percent and at $11.78 per share hours after earnings were released.
Sales fell 4 percent to $3.7 billion, also missing analysts' expectations of $3.9 billion for the quarter.
For the year, Goodyear posted net sales of $14.7 billion, down 5 percent from 2018. Its full-year adjusted net income for 2019 was $253 million, or $1.08 per share, down from $555 million, or $2.32 per share, in 2018, the company reported.
The company is dealing with adverse conditions in the auto market, which has seen vehicle sales drop over the past four years, and is bracing for further declines this year. Changes in consumer behavior and regional economic conditions have been blamed for much of the slowdown, and the coronavirus in China is expected to make 2020 particularly challenging for the sector.
Richard Kramer, Goodyear chairman, CEO and president, said in a statement released with the latest earnings that the U.S. market has been "largely stable," with the company benefiting from brand strength and new product introductions.
But auto sales have slumped in China and not been as strong as expected in India and other markets. Kramer acknowledged the global challenges confronting his company abroad.
"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," Kramer said.
So far, though, the company appears unable to escape the trough in which the auto industry has been stuck. As auto sales have slumped in recent years, so has Goodyear's stock price, falling from $36 per share in early 2017 to less than $12 per share in recent days.