The US-based multinational tyre manufacturing company, Goodyear, recently announced its financial figures for 2018 and for the fourth quarter of CY2018. In 2018, the revenue from sales was at $15.5 billion (Rs 110,445 crore), up by 1 percent from the prior year. In the fourth quarter, it was $3.9 billion (Rs 27,789 crore), down by 5 percent from $4.1 billion (Rs 29,214 crore) in same quarter of 2017. The company revealed that the decrease in the quarter was due to unfavourable currency translation and lower volume. However, it is said that the effects were partially offset by improvements in price/mix.
In Q4 CY2018, Goodyear’s production totalled 40.7 million units, down by 3 percent from 42 million units a year ago. Replacement tyre shipments were nearly flat as compared with a year ago, as growth in Europe was offset by weakness in Brazil and China. Original equipment unit volume was down 10 percent, primarily due to lower automotive production in China and India. Goodyear’s net income was $110 million (Rs783 crore) in the fourth quarter of 2018 as compared to a net loss of $96 million (Rs 684 crore) a year ago. Its operating income in the quarter was $307 million (Rs 2,187 crore), down from $430 million (Rs 3,063 crore) a year ago. The decrease reflects higher raw material costs, weaker results from other tyre-related businesses, lower volume and the unfavourable impact of foreign currency translation, which were partially offset by improved price/mix, net cost savings and improved overhead absorption. Similarly, in CY2018, it reported an operating income of $1.3 billion (Rs 9,261 crore) in 2018, down 18 percent from $1.6 billion (Rs 11,399 crore) a year ago.
Richard J. Kramer, chairman, chief executive officer and president commented, “Our teams delivered several operational wins in 2018, including increasing our consumer replacement volume and building our OE pipeline by securing numerous fitments, notably on future electric vehicles. While many of the macro challenges we faced in 2018 have extended into 2019, we continue to build on what we accomplished last year and remain focused on delivering a higher level of earnings over the longer term.”