Goodyear Reports Record Second Quarter Earnings

               Goodyear Reports Record Second Quarter Earnings

- Record second quarter segment operating income of $460 million

- North America second quarter earnings of $208 million, record for any
quarter

- Europe, Middle East and Africa second quarter earnings more than double to
$117 million

- Second quarter tire volumes increase 3%, in line with full-year outlook

- First half segment operating income of $833 million up 14% from last year

- Company reaffirms 2014-2016 financial targets

PR Newswire

AKRON, Ohio, July 30, 2014

AKRON, Ohio, July 30, 2014 /PRNewswire/ -- The Goodyear Tire & Rubber Company
(NASDAQ: GT) today reported record earnings for the second quarter of 2014.

The Goodyear Tire & Rubber Company, Akron, Ohio, USA.

"We delivered record second quarter results, driven by strong consumer
replacement volumes in all of our regions where our new products are in
demand," said Richard J. Kramer, chairman and chief executive officer.

"Our performance in the first half, which was achieved through a balance of
volume growth and cost reduction, gives us confidence that our strategy is
working and we are on track to attain our 2014-2016 financial targets."

Goodyear's second quarter 2014 sales were $4.7 billion, compared to $4.9
billion a year ago. Tire unit volumes totaled 40.6 million for the second
quarter of 2014, up 3 percent from 2013. Replacement tire shipments were up 6
percent with growth in all four regions. Original equipment unit volume was
down 4 percent, primarily in Latin America.

The company reported record segment operating income of $460 million in the
second quarter of 2014. This was up 7 percent from the year-ago quarter driven
by significant improvement in Europe, Middle East and Africa, which more than
offset softness in emerging markets. The North American business continued to
perform at record levels with segment operating margin of more than 10
percent.

Goodyear's record second quarter 2014 net income available to common
shareholders was $213 million (76 cents per share). Excluding certain
significant items, adjusted net income was $225 million (80 cents per share).
Per share amounts are diluted.

For the second quarter of 2013, net income available to common shareholders
was $181 million (67 cents per share). Excluding certain significant items,
adjusted net income was $209 million (76 cents per share). Per share amounts
are diluted.

Year to date

Goodyear's sales for the first six months of 2014 were $9.1 billion, down 6
percent from the 2013 period. Tire unit volumes totaled 80.6 million for the
first half of 2014, up 2 percent from 2013. Replacement tire shipments were up
4 percent. Original equipment unit volume was down 3 percent.

The company's first half segment operating income of $833 million was up 14
percent from last year and a record. Compared to the prior year, year-to-date
segment operating income reflects volume and earnings growth in North America
and Europe, Middle East and Africa, which offset lower earnings in emerging
markets.

Goodyear's year-to-date net income available to common shareholders of $155
million (58 cents per share) is down from $206 million (79 cents per share) in
2013's first half. All per share amounts are diluted.

See the note at the end of this release for further explanation and
reconciliation tables for Segment Operating Income; Free Cash Flow from
Operations; and Adjusted Net Income, reflecting the impact of certain
significant items on the 2014 and 2013 quarters.

Business Segment Results

North America

                          Second Quarter    Six Months
(in millions)             2014     2013     2014       2013
Tire Units                15.3     14.8     29.9       29.6
Sales                     $ 2,044  $ 2,201  $  3,923  $ 4,367
Segment Operating Income 208      204      364        331
Segment Operating Margin  10.2%    9.3%     9.3%       7.6%

North America's second quarter 2014 sales decreased 7 percent from last year
to $2 billion. Sales reflect a 3 percent increase in tire unit volume, offset
by lower third party chemical sales and lower price/mix. Replacement tire
shipments were up 6 percent. Original equipment unit volume was down 4
percent.

Second quarter 2014 segment operating income of $208 million was a 2 percent
improvement over the prior year and a record for any quarter. The improvement
was driven primarily by higher replacement tire volume.

Europe, Middle East and Africa

                          Second Quarter    Six Months
(in millions)             2014     2013     2014       2013
Tire Units                15.1     14.6     31.3       29.7
Sales                     $ 1,580  $ 1,577  $  3,256  $ 3,184
Segment Operating Income 117      51       227        82
Segment Operating Margin  7.4%     3.2%     7.0%       2.6%

Europe, Middle East and Africa's second quarter sales increased $3 million
from last year to $1.6 billion. Sales reflect a 3 percent increase in tire
unit volume and favorable foreign currency translation, partially offset by
unfavorable price/mix. Replacement tire shipments were up 4 percent. Original
equipment unit volume was flat.

Second quarter 2014 segment operating income of $117 million was $66 million
above the prior year primarily due to higher tire volume and cost reduction
actions, including savings from the closure of a tire plant in Amiens, France.

Latin America

                         Second Quarter      Six Months
(in millions)            2014     2013       2014   2013
Tire Units               4.4      4.5        8.4    9.0
Sales                    $  489  $   531  $ 911  $ 1,044
Segment Operating Income 59       82         101    142
Segment Operating Margin 12.1%    15.4%      11.1%  13.6%

Latin America's second quarter sales decreased 8 percent from last year to
$489 million. Sales reflect a 2 percent decrease in tire unit volume and
unfavorable foreign currency translation, partially offset by improved
price/mix. Replacement tire shipments were up 13 percent. Original equipment
unit volume was down 33 percent, primarily in Brazil.

Second quarter segment operating income of $59 million was down 28 percent
from a year ago primarily due to the effects of continuing challenges in the
operating environment in Venezuela, inflationary cost increases, lower
original equipment volume and plant expansion costs in Brazil, partially
offset by favorable price/mix.

Asia Pacific

                         Second Quarter    Six Months
(in millions)            2014     2013     2014       2013
Tire Units               5.8      5.6      11.0       10.7
Sales                    $  543  $  585  $  1,035  $ 1,152
Segment Operating Income 76       91       141        175
Segment Operating Margin 14.0%    15.6%    13.6%      15.2%

Asia Pacific's second quarter sales decreased 7 percent from last year to $543
million. Sales reflect a 5 percent increase in tire unit volume, offset by
unfavorable price/mix and unfavorable foreign currency translation.
Replacement tire shipments were up 4 percent. Original equipment unit volume
was up 6 percent.

Second quarter segment operating income of $76 million was down 17 percent
from last year, driven by weak market demand for OTR tires and unfavorable
foreign currency translation.

Outlook

The company reaffirmed its 2014-2016 financial targets, which include:
- Segment Operating Income growth of between 10 percent and 15 percent per
year,
- Annual positive Free Cash Flow from Operations and,
- An Adjusted Debt to EBITDAP ratio of 2.0x to 2.1x.

Additionally, the company continues to expect a 2 percent to 3 percent
increase in unit volumes for 2014 over 2013.

Common Stock Dividend

The company paid a quarterly dividend of 5 cents per share of common stock on
June 2, 2014. Directors have declared a quarterly dividend of 6 cents per
share payable September 2, 2014 to shareholders of record on August 1, 2014.

Common Stock Share Repurchase

As a part of its previously announced $450 million share repurchase program,
the company repurchased 1,150,000 shares of its common stock at an average
price of $26.56 per share during the second quarter.

Conference Call

Goodyear will hold an investor conference call at 9 a.m. today. Prior to the
commencement of the call, the company will post the financial and other
related information that will be presented on its investor relations Web site:
http://investor.goodyear.com.

Participating in the conference call will be Richard J. Kramer, chairman and
chief executive officer, and Laura K. Thompson, executive vice president and
chief financial officer.

Investors, members of the media and other interested persons can access the
conference call on the Web site or via telephone by calling either
800-895-1085 or 785-424-1055 before 8:55 a.m. and providing the Conference ID
"Goodyear." A taped replay will be available by calling 800-753-4606 or
402-220-2103. The replay will also remain available on the Web site.

Goodyear is one of the world's largest tire companies. It employs about 69,000
people and manufactures its products in 50 facilities in 22 countries around
the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg,
Luxembourg strive to develop state-of-the-art products and services that set
the technology and performance standard for the industry. For more information
about Goodyear and its products, go to www.goodyear.com/corporate. GT-FN

Certain information contained in this press release may constitute
forward-looking statements for purposes of the safe harbor provisions of The
Private Securities Litigation Reform Act of 1995. There are a variety of
factors, many of which are beyond our control, that affect our operations,
performance, business strategy and results and could cause our actual results
and experience to differ materially from the assumptions, expectations and
objectives expressed in any forward-looking statements. These factors include,
but are not limited to: our ability to implement successfully strategic
initiatives; actions and initiatives taken by both current and potential
competitors; increases in the prices paid for raw materials and energy; a
labor strike, work stoppage or other similar event; deteriorating economic
conditions or an inability to access capital markets; work stoppages,
financial difficulties or supply disruptions at our suppliers or customers;
the adequacy of our capital expenditures; our failure to comply with a
material covenant in our debt obligations; potential adverse consequences of
litigation involving the company; as well as the effects of more general
factors such as changes in general market, economic or political conditions or
in legislation, regulation or public policy. Additional factors are discussed
in our filings with the Securities and Exchange Commission, including our
annual report on Form 10-K, quarterly reports on Form 10-Q and current reports
on Form 8-K. In addition, any forward-looking statements represent our
estimates only as of today and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update
forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so, even if our estimates change.

(financial statements follow)





The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Operations (unaudited)
                                  Three Months Ended        Six Months Ended
                                  June 30,                  June 30,
(In millions, except per share    2014         2013         2014     2013
amounts)
NET SALES                         $ 4,656      $ 4,894      $ 9,125  $ 9,747
Cost of Goods Sold                3,532        3,846        7,050    7,786
Selling, Administrative and       698          691          1,356    1,336
General Expense
Rationalizations                  24           13           65       20
Interest Expense                  102          102          207      187
Other (Income) Expense            8            (14)         176      112
Income before Income Taxes        292          256          262      306
United States and Foreign Taxes   60           63           68       82
Net Income                        232          193          194      224
 Less: Minority              19           5            32       3
Shareholders' Net Income
Goodyear Net Income               213          188          162      221
Less: Preferred Stock Dividends  --           7            7        15
Goodyear Net Income Available to  $    213  $    181  $     $   
 Common Shareholders                                      155      206
Goodyear Net Income Available to
 Common Shareholders- Per Share
of
 Common Stock
 Basic                          $   0.77  $   0.    $     $   0.
                                               74           0.59     84
 Weighted Average Shares        276          246          262      246
Outstanding
 Diluted                        $   0.76  $   0.    $     $   0.
                                               67           0.58     79
 Weighted Average Shares        281          282          281      281
Outstanding
Cash Dividends Declared Per       $   0.05  --           $     --
Common Share                                                0.10





The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Balance Sheets (unaudited)
(In millions, except share data)                    June 30,     December 31,
                                                     2014         2013
Assets:
Current Assets:
 Cash and Cash Equivalents                          $   1,637  $   2,996
 Accounts Receivable, less Allowance - $98 ($99 in  2,841        2,435
2013)
 Inventories:
 Raw Materials                                   638          592
 Work in Process                                 165          164
 Finished Products                               2,327        2,060
                                                     3,130        2,816
 Prepaid Expenses and Other Current Assets          430          397
 Total Current Assets                            8,038        8,644
Goodwill                                             663          668
Intangible Assets                                    137          138
Deferred Income Taxes                                131          157
Other Assets                                         648          600
Property, Plant and Equipment
                                                     7,325        7,320
 less Accumulated Depreciation - $9,373 ($9,158 in
2013)
 Total Assets                                     $  16,942   $  17,527
Liabilities:
Current Liabilities:
 Accounts Payable-Trade                             $   3,097  $   3,097
 Compensation and Benefits                          763          758
 Other Current Liabilities                          1,080        1,083
 Notes Payable and Overdrafts                       7            14
 Long Term Debt and Capital Leases due Within One   78           73
Year
 Total Current Liabilities                        5,025        5,025
Long Term Debt and Capital Leases                    6,677        6,162
Compensation and Benefits                            1,369        2,673
Deferred and Other Noncurrent Income Taxes           255          256
Other Long Term Liabilities                          934          966
 Total Liabilities                                14,260       15,082
Commitments and Contingent Liabilities
Minority Shareholders' Equity                        613          577
Shareholders' Equity:
Goodyear Shareholders' Equity:
Preferred Stock, no par value:
Authorized, 50 million shares, Outstanding shares –
none (10 million in 2013), liquidation preference    --           500
$50 per share
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares –
275 million (248 million in 2013) after deducting 3  275          248
million treasury shares (3 million in 2013)
Capital Surplus                                      3,293        2,847
Retained Earnings                                    2,087        1,958
Accumulated Other Comprehensive Loss                 (3,830)      (3,947)
 Goodyear Shareholders' Equity                     1,825        1,606
Minority Shareholders' Equity – Nonredeemable        244          262
 Total Shareholders' Equity                        2,069        1,868
 Total Liabilities and Shareholders' Equity        $  16,942   $  17,527





The Goodyear Tire & Rubber Company and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)
(In millions)                                       Six Months Ended
                                                     June 30,
                                                     2014          2013
Cash Flows from Operating Activities:
Net Income                                           $    194  $ 224
 Adjustments to reconcile net income to cash flows
from operating activities:
 Depreciation and amortization                   371           357
 Amortization and write-off of debt issuance     10            8
costs
 Net pension curtailments and settlements        39            --
 Net rationalization charges                     65            20
 Rationalization payments                        (119)         (43)
 Net gains on asset sales                        (3)           (3)
 Pension contributions and direct payments       (1,257)       (993)
 Net Venezuela currency remeasurement loss       157           115
 Customer prepayments and government grants      4             29
 Insurance proceeds                              4             17
 Changes in operating assets and liabilities, net
of asset acquisitions and dispositions:
 Accounts receivable                             (376)         (391)
 Inventories                                     (318)         22
 Accounts payable - trade                        86            148
 Compensation and benefits                       35            46
 Other current liabilities                       (26)          (38)
 Other assets and liabilities                    --            20
 Total Cash Flows from Operating Activities      (1,134)       (462)
Cash Flows from Investing Activities:
 Capital expenditures                               (441)         (493)
 Asset dispositions                                 5             7
 Decrease (increase) in restricted cash             3             (8)
 Short term securities acquired                     (41)          (60)
 Short term securities redeemed                     46            48
 Other transactions                                 7             4
 Total Cash Flows from Investing Activities      (421)         (502)
Cash Flows from Financing Activities:
 Short term debt and overdrafts incurred            18            29
 Short term debt and overdrafts paid                (24)          (51)
 Long term debt incurred                            1,314         2,115
 Long term debt paid                                (823)         (639)
 Common stock issued                                31            5
 Common stock repurchased                           (65)          --
 Common stock dividends paid                        (26)          --
 Preferred stock dividends paid                     (15)          (15)
 Transactions with minority interests in            (34)          (8)
subsidiaries
 Debt related costs and other transactions          --            (16)
 Total Cash Flows from Financing Activities      376           1,420
Effect of exchange rate changes on cash and cash     (180)         (173)
equivalents
Net Change in Cash and Cash Equivalents              (1,359)       283
Cash and Cash Equivalents at Beginning of the Period 2,996         2,281
Cash and Cash Equivalents at End of the Period       $  1,637     $   2,564





Non-GAAP Financial Measures

This earnings release presents Total Segment Operating Income, Free Cash Flow
from Operations, Adjusted Net Income and Adjusted Diluted Earnings Per Share
(EPS) on a historical basis and our targeted Total Segment Operating Income
growth rate for 2014-2016 and our targeted ratio of Adjusted Debt to EBITDAP
for 2016, which are important financial measures for the company but are not
financial measures defined by U.S. GAAP, and should not be construed as an
alternative to corresponding financial measures presented in accordance with
U.S. GAAP.

Total Segment Operating Income is the sum of the individual strategic business
units' (SBUs) Segment Operating Income as determined in accordance with U.S.
GAAP. Management believes that Total Segment Operating Income is useful
because it represents the aggregate value of income created by the company's
SBUs and excludes items not directly related to the SBUs for performance
evaluation purposes.

Free Cash Flow from Operations is the company's Cash Flow from Operations as
determined in accordance with U.S. GAAP before pension contributions and
direct payments and rationalization payments, less capital expenditures.
Management believes that Free Cash Flow from Operations is useful because it
represents the cash generating capability of the company's ongoing operations,
after taking into consideration capital expenditures necessary to maintain its
business and pursue growth opportunities.

Adjusted Net Income is Goodyear's Net Income as determined in accordance with
U.S. GAAP adjusted for certain significant items. Adjusted Diluted EPS is the
company's Adjusted Net Income divided by Weighted Average Shares
Outstanding-Diluted as determined in accordance with U.S. GAAP. Management
believes that Adjusted Net Income and Adjusted Diluted EPS are useful because
they represent how management reviews the operating results of the company
excluding the impacts of rationalizations, asset write-offs, accelerated
depreciation, asset sales and certain other significant items.

Adjusted Debt is the sum of our total debt and our global pension liability,
each as determined in accordance with U.S. GAAP, and EBITDAP, as adjusted,
represents Net Income (the most directly comparable U.S. GAAP financial
measure) before interest expense, income tax expense, depreciation and
amortization expense, net periodic pension cost, rationalization charges and
other (income) and expense. We refer to the ratio of Adjusted Debt to EBITDAP
because we believe it is widely used by investors as a means of evaluating a
company's leverage.

We are unable to present a quantitative reconciliation of our forward-looking
non-GAAP financial measures to the most directly comparable U.S. GAAP
financial measures, because management cannot reliably predict all of the
necessary components of those U.S. GAAP financial measures without
unreasonable effort. These components could be significant to the calculation
of those U.S. GAAP financial measures in the future.

It should be noted that other companies may calculate similarly-titled
non-GAAP financial measures differently and, as a result, the measures
presented herein may not be comparable to such similarly-titled measures
reported by other companies.

See the tables below for reconciliations of historical Total Segment Operating
Income, Free Cash Flow from Operations, Adjusted Net Income and Adjusted
Diluted EPS to the most directly comparable U.S. GAAP measures.





Total Segment Operating Income Reconciliation Table
                                                Three Months Six Months
                                                Ended        Ended
                                                June 30,     June 30,
(In millions)                                   2014   2013  2014  2013
Segment Operating Income                       $460   $428  $833  $730
 Rationalizations                              24     13    65    20
 Interest Expense                              102    102   207   187
 Other (Income) Expense                        8      (14)  176   112
 Asset Write-offs and Accelerated Depreciation 2      5     3     10
 Corporate Incentive Compensation Plans        19     35    46    45
 Pension Curtailments/Settlements              --     --    33    --
 Intercompany Profit Elimination               (4)    (3)   9     --
 Retained Expenses of Divested Operations      3      6     7     10
 Other                                         14     28    25    40
Income before Income Taxes                      $292   $256  $262  $306





Free Cash Flow from Operations Reconciliation Table
                                             Three Months
                                             Ended
                                             June 30,
(in millions)                                2014   2013
Net Income                                   $232   $193
 Depreciation and Amortization             188    180
 Working Capital (1)                       (18)   114
 Pension Expense (2)                       38     72
 Other (3)                                 86     20
 Capital Expenditures                      (212)  (222)
Free Cash Flow from Operations (non-GAAP)    $314   $357
 Capital Expenditures                      212    222
 Pension Contributions and Direct Payments (34)   (85)
 Rationalization Payments                  (83)   (19)
Cash Flow from Operating Activities (GAAP)   $409   $475

Amounts are calculated from the consolidated Statements of Cash Flows except
for pension expense, which is as reported in the Notes to Consolidated
Financial Statements.
(1) Working Capital represents total changes in accounts receivable,
inventories and accounts payable – trade.
(2) Pension expense is the net periodic pension cost (before curtailments,
settlements and termination benefits) as reported in the pension-related note
in the Notes to Consolidated Financial Statements.
(3) Other includes amortization and write-off of debt issuance costs, net
pension curtailments and settlements, net rationalization charges, net losses
(gains) on asset sales, net Venezuela currency remeasurement loss, customer
prepayments and government grants, insurance proceeds, compensation and
benefits less pension expense, other current liabilities, and other assets and
liabilities.





Adjusted Net Income Reflecting Certain Significant Items (after tax and
minority interest)
                                                                     Per Share
Second Quarter 2014                                      In Millions (Diluted)
Goodyear Net Income                                      $ 213       $ 0.76
Significant Items:
 Rationalizations, Asset Write-offs, and
Accelerated                                          19          0.07

 Depreciation Charges
 Charges Relating to Labor Claims with Respect to a
Previously                                               10          0.04
 Closed Facility in Europe
 Net Gains on Asset Sales                             (4)         (0.02)
 Settlement of Indirect Tax Claims              (13)        (0.05)
                                                         $  12      $ 0.04
Adjusted Net Income (non-GAAP)                           $ 225       $ 0.80
                                                                     Per Share
Second Quarter 2013                                      In Millions (Diluted)
Goodyear Net Income                                      $ 188       $ 0.67
Significant Items:
 Rationalizations, Asset Write-offs, and Accelerated  13          0.05
 Depreciation Charges
 Discrete Tax Charges                                 7           0.03
 Charges Relating to Labor Claims with Respect to a
Previously                                               5           0.02
 Closed Facility in Europe
 Net Gain on Asset Sales                              (4)         (0.01)
                                                         $  21      $ 0.09
Adjusted Net Income (non-GAAP)                           $ 209       $ 0.76



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SOURCE The Goodyear Tire & Rubber Company

Website: http://www.goodyear.com
Contact: MEDIA CONTACT: Keith Price 330-796-1863 or ANALYST CONTACT: Tom
Kaczynski 330-796-6704
 
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