Goodyear Tire Q4 Net Profit Spikes, Adj. EPS Tops View; Backs 2015-2016 Goals

(RTTNews) - Tire manufacturer Goodyear Tire & Rubber Co. (GT) reported a sharp surge in fourth-quarter 2014 net income available to common shareholders to $2.1 billion, or $7.68 per share, from the year-ago quarter's $228 million, or $0.84 per share. Excluding certain significant items, adjusted net income totaled $166 million, or $0.59 per share for the recent period. On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

The Akron, Ohio-based company's quarterly net sales declined to $4.356 billion from $4.79 billion in the same quarter last year, while six Wall Street analysts' had a consensus revenue estimate of $4.37 billion. Sales were impacted by $256 million in unfavorable foreign currency translation and $181 million in lower sales volume in Europe, Middle East and Africa, Goodyear noted. Tire unit volumes totaled 39.5 million for the fourth quarter of 2014.

The release of the tax valuation allowance represents a one-time, non-cash benefit to earnings in 2014. Whilst the firm would record charges for income taxes in future periods, it does not expect to pay cash taxes in the U.S. for nearly 5 years.

Going forward, the company backed its 2015-2016 financial targets, including segment operating income growth of between 10 percent and 15 percent per year; and an adjusted Debt to EBITDAP ratio of 2.0x to 2.1x.