The Goodyear Tire & Rubber Company (NASDAQ: GT) today reported results for the fourth quarter of 2020.
Fourth-quarter operating income was $302 million, up 25% from the prior year. Fourth-quarter revenue per tire was up 3%, excluding foreign currency.
Goodyear’s fourth-quarter 2020 sales were $3.7 billion , down 2% from a year ago. The decline was driven by lower volume and unfavorable foreign currency translation. These factors were partially offset by improvements in price/mix.
Tire unit volumes totaled 37.7 million, down 5% from the prior year’s period. Industry demand during the quarter was affected by the continued economic disruption resulting from the COVID-19 pandemic.
Replacement tire shipments declined 7%, reflecting the impact of lower consumer demand and actions taken to align European distribution. Original equipment unit volume increased 3%, reflecting increased market share in Americas and EMEA.
Goodyear’s fourth-quarter 2020 net income was $63 million (27 cents per share) compared to a net loss of $392 million ($1.68 per share) a year ago. Fourth quarter 2020 adjusted net income was $103 million (44 cents per share) compared to adjusted net income of $45 million (19 cents per share) in 2019. Per share amounts are diluted.
Said CEO Richard Kramer, “We have good momentum as we enter 2021. Our commercial business continues to outperform the industry, our consumer replacement business is strengthening, and we are beginning to see the benefits of our robust consumer OE pipeline. I am confident we are positioned to capitalize on stronger industry fundamentals in 2021.”
GT shares added 76 cents, or 6%, to $13.49