The Goodyear Tire & Rubber Company (GT) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $561 million, or $ 2.14 a share in the quarter, against a net loss of $380 million, or $1.42 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $249 million, or $0.95 a share compared with $257 million or $0.93 a share, a year ago. Revenue during the quarter dropped 7.93 percent to $3,741 million from $4,063 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 27.24 percent. Total expenses were 89.23 percent of quarterly revenues, down from 94.22 percent for the same period last year. This has led to an improvement of 499 basis points in operating margin to 10.77 percent.
Operating income for the quarter was $403 million, compared with $235 million in the previous year period.
“We delivered solid net income and record core segment operating income in 2016, driven by strong performance in our Americas and Asia Pacific consumer tire businesses,” said Richard J. Kramer, chairman and chief executive officer. “Our results demonstrate continued sustainable earnings growth and disciplined execution of our strategy.
Operating cash flow declines
The Goodyear Tire & Rubber Company has generated cash of $1,504 million from operating activities during the year, down 10.85 percent or $183 million, when compared with the last year. The company has spent $973 million cash to meet investing activities during the year as against cash outgo of $1,262 million in the last year. It has incurred net capital expenditure of $961 million on net basis during the year, up 4.34 percent or $40 million from year ago.
The company has spent $860 million cash to carry out financing activities during the year as against cash outgo of $985 million in the last year period.
Cash and cash equivalents stood at $1,132 million as on Dec. 31, 2016, down 23.31 percent or $344 million from $1,476 million on Dec. 31, 2015.
Working capital declines
The Goodyear Tire & Rubber Company has witnessed a decline in the working capital over the last year. It stood at $901 million as at Dec. 31, 2016, down 23.90 percent or $283 million from $1,184 million on Dec. 31, 2015. Current ratio was at 1.19 as on Dec. 31, 2016, down from 1.24 on Dec. 31, 2015.
Debt comes down marginally
The Goodyear Tire & Rubber Company has recorded a decline in total debt over the last one year. It stood at $5,479 million as on Dec. 31, 2016, down 4.01 percent or $229 million from $5,708 million on Dec. 31, 2015. Total debt was 33.18 percent of total assets as on Dec. 31, 2016, compared with 34.72 percent on Dec. 31, 2015. Debt to equity ratio was at 1.16 as on Dec. 31, 2016, down from 1.38 as on Dec. 31, 2015. Interest coverage ratio improved to 4.63 for the quarter from 2.03 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
