Goodyear Tire & Rubber Co. (GT) - Get Report filed an 8-K report with the Securities and Exchange Commission Tuesday informing investors that it experienced weakness in its tire unit volume in the fourth quarter and that it was lowering its full-year net operating income expectations as a result.
The news sent the stock tumbling 13% to $19.00 at the close of trading on Tuesday, its worst single day decline since 2011.
Goodyear said that the operating earnings environment in China and India continued to decline, leading to the reduced outlook. Additionally, the company said that declines in the winter tire market in Europe and supply constraints on volume for "high-value-added consumer and commercial truck tires" in the U.S. also weighed on the quarter.
As a result, the company now expects its operating income to come in slightly below its previous guidance of about $1.3 billion. Net income is also expected to be negatively impacted by the fourth-quarter weakness, though the company didn't provide details about the impact on net income.
Separately, the Akron, Ohio-based company declared a quarterly dividend of 16 cents a share, payable March 1 to shareholders of record on Feb. 1.