Goodyear Tire & Rubber Co. reported a net loss of $58 million on net sales of $4.5 billion for its first quarter ended March 31, 2014. That compares to income of $26 million on sales of $4.9 billion for the same period last year.
Goodyear attributed the net loss to a Venezuelan foreign currency charge. “Despite the Venezuelan charge in the quarter, our operating results remained strong and in line with our expectations and we are reaffirming our 2014-2016 financial targets,” says Richard Kramer, chairman and chief executive officer.
Segment operating income was up 24% quarter to quarter, from $302 million to a record $373 million. Goodyear says the growth in segment operating income shows its strategy is working.
The company says first-quarter 2014 sales reflect $202 million in lower sales in other tyre related businesses, most notably third-party chemical sales in North America; $126 million in unfavorable foreign currency translation; and $98 million in lower price/mix, principally due to lower raw material costs, partially offset by $44 million in higher tyre unit volumes.