Goodyear Tire Reports $380 Million Quarterly Loss on Venezuela Woes, Sets 2016 Capex at $1.1 Billion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Goodyear Tire & Rubber Company (NASDAG:GT) (Akron, Ohio) experienced a net loss of $380 million for fourth-quarter 2015, mainly due to the tire manufacturer's deconsolidation of its Venezuelan operations. Industrial Info is tracking 13 active Goodyear-related projects worth $624.8 million.

The deconsolidation resulted in a one-time charge of $646 million. Excluding the charge and other items, Goodyear's adjusted net income for the quarter was $257 million. Net income for the whole year of 2015 was $376 million, an 85% drop from 2014. Industrial Info is currently tracking 13 Goodyear-related projects worth $624.8 million.

Goodyear set its planned 2016 capital expenditures in the range of $1 billion to $1.1 billion, compared with 2015's expenditures of $983 million.

Goodyear projects tracked by Industrial Info include the $550 million San Luis Potosi Rubber Tires Manufacturing Plant in Mexico. The project kicked off in July 2015 and is expected to be completed in January 2017. Executives said during the company's earnings conference call that Goodyear is maintaining its investments in the Mexico project while slowing investment activities in Brazil and China.

Another project is the $30.1 million Gadsden Passenger & Light Truck Tire Manufacturing Plant expansion in Alabama, with a construction kick-off date of October 2015 and a completion date expected December 2016.

The firm set a record with its segment operating income for the full year, exceeding $2 billion, the first time in the company's history. This was an 18% increase from 2014. Segment operating income for the quarter was $476 million, an increase of 33% from 2014.

"Our record results reflect strong demand for our high-value-added Goodyear-brand tires and our focus on capturing the value of these products in the marketplace," said Chief Executive Officer Richard Kramer. "While economic uncertainty in the global environment will persist in 2016, we remain committed to our target of 10 to 15 percent growth in segment operating income from our ongoing operations."

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