Goodyear tanks after profit warning, cites weakening environment

on Jan16
by | Comments Off on Goodyear tanks after profit warning, cites weakening environment |

An employee works at a tire store in Hefei, China.

Jie Zhao | Corbis News | Getty Images

An employee works at a tire store in Hefei, China.

Goodyear shares plunged 12 percent after the company announced that fourth-quarter tire unit volumes declined by about 3 percent due to the continued weakening of the environment in China and India.

The company also cited reduced demand in the winter tire market in Europe and supply constraints on volume for high-value-added consumer and commercial truck tires in United States as other reasons for this decline. Earnings also fell in other tire-related businesses including the company’s U.S. chemical operations.

Goodyear’s net income is expected to be negatively affected by these factors and the company’s total segment operating income is expected to be slightly below previous projections of $1.3 billion as well.

Representatives of Goodyear will present these findings at conferences on Jan. 15 and 16 to discuss the company’s preliminary performance in 2018. The conferences will be hosted in conjunction with the Detroit Auto Show.



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