Goodyear Tire Q3 Profit Rises; Revises 2016 Outlook

(RTTNews) - Goodyear Tire & Rubber Co.y (GT) reported that its third quarter 2016 net income was $317 million or $1.19 per share, up from $271 million or $0.99 per share in the year-ago quarter. The improvement was primarily due to an income tax benefit resulting from various discrete tax adjustments that was partially offset by increased rationalization charges.

"Our revised 2016 outlook reflects recent volatility impacting our U.S. commercial truck tire business. This near-term headwind will not have an impact on our value proposition or our ability to execute on our long-term plan," said Richard J. Kramer, chairman, chief executive officer and president.

Third quarter 2016 adjusted net income was $310 million or $1.17 per share, up from $271 million or $0.99 per share in 2015.

The company reported third quarter segment operating income of $556 million in 2016, down from $602 million a year ago. Segment operating income in 2016 was negatively impacted by the deconsolidation of Venezuela. Core segment operating income, which excludes Venezuela, was $563 million in the year-ago quarter.

Net sales for the quarter declined to $3.847 billion from $4.184 billion last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.18 per share and revenues of $3.97 billion for the quarter. Analysts' estimates typically exclude special items.

On October 24 the company announced its intention to close its Philippsburg, Germany tire manufacturing facility and realign its European capacity to increase production of high-value-added tires

The company has confirmed its 2020 financial targets and capital allocation plan, which were announced on September 15, 2016.

The company has revised its 2016 financial targets. The company now expects its full-year 2016 total segment operating income to be between $2 billion and $2.025 billion.

The company paid a quarterly dividend of 7 cents per share of common stock on September 1, 2016. The Board of Directors has declared a quarterly dividend of 10 cents per share payable December 1, 2016, to shareholders of record on November 1, 2016.

As a part of its previously announced $1.1 billion share repurchase program, the company repurchased 1.7 million shares of its common stock for $50 million during the third quarter.