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Goodyear Tire & Rubber Posts Q4 Loss, Results Miss Estimates

Goodyear Tire & Rubber Co. (GT) reported that its fourth-quarter net loss was $392 million or $1.68 per share compared to net income of $110 million or $0.47 per share a year ago.

In Tuesday pre-Market, GT is trading at $12.60, down $0.59 or 4.47 percent.

The latest-quarter results was hurt by discrete tax adjustments of $380 million during the fourth quarter of 2019, including a non-cash charge of $334 million related to an acceleration of royalty income in the U.S. from the sale of the next twelve years of European royalty payments to Luxembourg business, and rationalization charges of $77 million.

Quarterly adjusted net income was $45 million or $0.19 per share, compared to $120 million or $0.51 per share in 2018. Analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share. Analysts' estimates typically exclude special items.

Sales for the quarter were $3.71 billion, down about 4% from $3.88 billion a year ago, hurt by lower industry volume and unfavorable foreign currency translation. It was partially offset by improved price/mix. Wall Street analysts had a consensus revenue estimate of $3.88 billion for the quarter.

Tire unit volumes totaled 39.6 million, down 2% from 2018. Original equipment unit volume decreased 10%, driven by lower global vehicle production. Replacement tire shipments increased slightly.

Goodyear said its operations in China have been disrupted by the coronavirus. The company's office-based associates will continue to work remotely through at least February 17.

Following a nine-day closure, the Goodyear-Pulandian manufacturing plant restarted operations on a limited basis on February 10 to support customers across the Asia Pacific region. It is not clear what the full impact of the coronavirus disruption will be, the company said.

The company declared a quarterly dividend of 16 cents per share of common stock on January 14, 2020, payable on March 2, 2020, to shareholders of record on February 3, 2020.

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