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First Quarter 2015 Conference Call April 29, 2015

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Page 1: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

First Quarter 2015 Conference Call April 29, 2015

Page 2: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Forward-Looking Statements

Certain information contained in this presentation constitutes 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 our strategic initiatives; actions and initiatives taken by both current and potential competitors; foreign currency translation and transaction risks; 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.

2

Page 3: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Highlights

3

• Record first quarter Segment Operating Income of $391 million with

9.7% SOI margin

• North America sets first quarter earnings record of $198 million, up 27%

• Global volume growth of 2%; solid growth in three of four business units

• Strong HVA demand leads to Americas plant location announcement

• North America eCommerce program successfully launched

• Company reaffirms 2015 financial targets

Page 4: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

North America Journey

4

Consistent and dramatic performance has turned North America from a “turnaround story” into a “momentum story”

-$0.4

-$0.2

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

Q4/

09

Q4/

10

Q4/

11

Q4/

12

Q4/

13

Q4/

14

Q1/

15

Segm

ent

Ope

rati

ng In

com

e ($

bill

ions

) North America Profitability

Terms: Trailing 4 Quarters

$1.15B improvement during past 5 years with

SOI margin now over 10% for past 4 consecutive quarters

Page 5: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

0

50

100

150

200

250

300

350

400

450

500

2012 2013 2014 2015 2016 2017 2018 2019

Americas Consumer Tire Industry terms: Millions of Tires - Replacment & OE - North and Latin America

New Americas Consumer Tire Plant

5

403 421 432 443 455 464 475 484

2014-2019 Growth Total = +52M (~10M/year, ~2%/year) HVA = +90M (~18M/year, ~6%/year)

(a) • Goodyear to build previously announced tire plant in San Luis Potosi, Mexico

• Central location effectively supports strong and growing demand for HVA tires across both North and Latin America

• Annual capacity at ~6 million tires; first production planned for mid-2017

• Total Capex to be $500 to $550 million during 2015-2018, and funded within existing capital allocation plan

• High return project with IRR of 18%, and generating $100 million of free cash flow per year once fully operational

(a) Source: LMC International and Goodyear internal analysis

53% 58%

62% 65%

68% 70%

72% 74%

Low Value

Added (LVA)

High Value

Added (HVA)

HVA as % of entire industry

Goodyear building world-class factory to meet growing demand for high-value-added Consumer tires across the Americas

Page 6: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

New Product Highlights

6

New products launched globally to capture consumer demand for high value added tires

EMEA launches Goodyear EfficientGrip Performance tire with highest label grade available under EU regulations

Latin America launches Goodyear EfficientGrip SUV tire to serve premium SUV customers

North America launches Kelly Edge All Season as a branded line to meet customer needs

Asia Pacific launches Goodyear Assurance DuraPlus engineered to go up to 100,000km, providing a long lasting tire

Page 7: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Strategy Roadmap

7

Our Destination - Creating Sustainable Value

Industry MegaTrends

Where We Are

Key Strategies Key How To’s

Executing Plan

Innovation Leader

Record Earnings

Value Creating

Investing for Growth

US Pension Fully Funded

Top Line / Bottom Line Growth

First with Customers

Innovation Leaders

Leader in Targeted Segments

1. North America: Grow Profitably

2. Asia: Win in China / Grow Asia

3. EMEA / LA: Return to Historical Profit

Market-Back Innovation Excellence

Sales & Marketing Excellence

Operational Excellence

Enabling Investments

Top Talent / Top Teams

Competitively Advantaged

Profitable thru Economic Cycle

Cash Flow Positive

Investment Grade

Page 8: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

First Quarter 2015 Income Statement

(a) See Segment Operating Income and Margin reconciliation in Appendix on page 23. (b) See Adjusted Diluted Earnings Per Share and US Tax Adjusted Diluted Earnings Per Share reconciliations in Appendix on pages 18 and 19.

In millions, except EPS

8

March 31, March 31,2015 2014 Change

Units 40.8 40.0 2%

Net Sales 4,024$ 4,469$ (10)%

Gross Margin 23.8% 21.3% 2.5 pts

SAG 608$ 667$ (9)%

Segment Operating Income(a) 391$ 373$ 5%

Segment Operating Margin (a) 9.7% 8.3% 1.4 pts

Goodyear Net Income (Loss) 224$ (51)$

Less: Preferred Stock Dividends -$ 7$ Goodyear Net Income (Loss) Available to Common Shareholders 224$ (58)$

Goodyear Net Income (Loss) Available to Common Shareholders - Per Share of Common Stock

Basic 0.83$ (0.23)$

Diluted 0.82$ (0.23)$

Cash Dividends Declared Per Common Share 0.06$ 0.05$

Adjusted Diluted Earnings Per Share (b) 0.54$ 0.56$

US Tax Adjusted Diluted Earnings Per Share (b) 0.65$ 0.56$

Three Months Ended

Page 9: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

First Quarter 2015 Segment Operating Results

9

1. Raw material variance of $46 million excludes raw material cost saving measures of $58 million, which is included in Cost Savings above. 2. Estimated impact of inflation (wages, utilities, energy, transportation and other). 3. Amiens savings and certain other non-recurring charges in 2014.

($ in millions)

Q1 2014

$373

Cost Savings

$46 ($29) $391

Volume Price/Mix Raw

Materials(1)

Inflation(2)

Other(3)

($29) $41

$68

$23

Q1 2015

$18

($62)

Unabsorbed Fixed Cost Currency

($40)

($6) $17 $6

Page 10: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

(a) Working capital represents accounts receivable and inventories, less accounts payable – trade. (b) See Total Debt and Net Debt reconciliation in Appendix on page 24.

First Quarter 2015 Balance Sheet

$ In millions

10

March 31, December 31, March 31,2015 2014 2014

Cash and cash equivalents 1,613$ 2,161$ 1,853$

Accounts receivable 2,523 2,126 2,913Inventories 2,538 2,671 3,021Accounts payable - trade (2,612) (2,878) (3,112)Working capital(a) 2,449$ 1,919$ 2,822$

Total debt(b) 6,226$ 6,394$ 7,120$

Net debt(b) 4,613$ 4,233$ 5,267$

Page 11: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Free Cash Flow from Operations

$ In millions

11

(a) The increase in Provision for Deferred Income Taxes is primarily due to the accrual of US tax expense as a result of the reversal of the valuation allowance on our US deferred tax assets in the fourth quarter 2014.

(b) Gain on Recognition of Deferred Royalty Income is due to a one-time pre-tax gain of $155 million on the recognition of deferred income resulting from the termination of a licensing agreement associated with the sale of our former Engineered Products business.

(c) See Free Cash Flow from Operations reconciliation in Appendix on page 25.

Trailing TwelveMonths Ended

2015 2014 March 31, 2015

Net Income (Loss) 236$ (38)$ 2,795$ Depreciation and Amortization 172 183 721Change in Working Capital (569) (590) 20Pension Expense 36 50 144Provision for Deferred Income Taxes (a) 91 (21) (1,858)Gain on Recognition of Deferred Royalty Income (b) (155) - (155)Capital Expenditures (204) (229) (898)Other (21) 132 311

Free Cash Flow from Operations (non-GAAP) (c) (414)$ (513)$ 1,080$

Three Months EndedMarch 31,

Page 12: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

First Quarter 2015 Segment Results

In millions

12

2015 2014 Change 2015 2014 Change

Units 14.8 14.6 1.7% Units 15.9 16.2 (1.6%)

Net Sales $1,858 $1,879 (1.1%) Net Sales $1,331 $1,676 (20.6%)

Operating Income $198 $156 26.9% Operating Income $73 $110 (33.6%)

Margin 10.7% 8.3% Margin 5.5% 6.6%

2015 2014 Change 2015 2014 Change

Units 5.7 5.2 8.8% Units 4.4 4.0 9.6%

Net Sales $450 $492 (8.5%) Net Sales $385 $422 (8.8%)

Operating Income $67 $65 3.1% Operating Income $53 $42 26.2%

Margin 14.9% 13.2% Margin 13.8% 10.0%

North America Europe, Middle East and Africa

Latin AmericaAsia Pacific

Page 13: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

2015 Key Segment Operating Income Drivers

Driver 2015 FY vs 2014 vs Feb Outlook Comments

Global Volume +1-2% N/C • No change

Price/Mix vs. Raw Materials ~$200 million N/C • No change

Overhead Absorption Neutral N/C • No change

Cost Savings vs. Inflation ~$160 million N/C • No change

Foreign Exchange ~($200) million • Based on current spot rates

Amiens Closure ~$20 million N/C • No change

Venezuela ~($30) million

• Assume zero earnings contribution for remainder of year due to deteriorating macro environment; significant uncertainty regarding USD availability and FX rates

13

Page 14: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

2015 Outlook Other Financial Assumptions

2015 FY Assumption

Interest Expense $415 - $440 million

Financing Fees ~$80 million

Income Tax Expense: ~30% of global pre-tax operating income Cash: ~15% of global pre-tax operating income

Depreciation & Amortization ~$725 million

Global Pension Expense $125 - $175 million

Global Pension Cash Contributions $50 - $75 million

Working Capital Not a significant source or use

Capital Expenditures ~$1.1 billion Memo – 2016: $1.2-$1.3 billion

14

Page 15: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

2015-2016 Financial Targets

15

• Annual 10-15% SOI growth per year through 2016

• Annual positive free cash flow from operations

• Adjusted Debt to EBITDAP(a) ratio of 2.0 to 2.1x by the end of 2016

(a) Total debt plus global pension liability, divided by net income before interest expense, income tax expense, depreciation and amortization expense, net periodic pension cost, rationalization charges and other (income) expense.

Page 16: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Appendix

Page 17: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

$689

$2,356

$1,017

($321) ($376) ($29)

$549

$1,822

$327

($985)

($553)

($104)

2010 2011 2012 2013 2014 2015 Q1

Price/Mix Raw Materials

(b)

(e)

Price/Mix vs. Raw Materials(a)

(a) Reflects impact on Segment Operating Income. Raw materials include the impact of raw material cost savings measures. (b) Raw material variance of $549 million includes raw material cost savings measures of $136 million. (c) Raw material variance of $1,822 million includes raw material cost savings measures of $177 million. (d) Raw material variance of $327 million includes raw material cost savings measures of $249 million. (e) Raw material variance of ($985) million includes raw material cost savings measures of $228 million. (f) Raw material variance of ($553) million includes raw material cost savings measures of $269 million. (g) Raw material variance of ($104) million includes raw material cost savings measures of $58 million.

$ in millions

(f)

17

(g)

(d)

(c)

Page 18: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

$ (except EPS) and shares in millions

18

First Quarter 2015 Significant Items (After Tax and Minority Interest)

(a) US Tax Adjusted Diluted Earnings per Share excludes the effect of non-cash US tax expense as a result of the reversal of the valuation allowance on our US deferred tax assets in the fourth quarter 2014. The company does not expect to pay significant cash income taxes in the US for about five years. The company believes the presentation of this non-GAAP measure is important as it facilitates a consistent comparison of net income and earnings per share versus the prior year.

As Reported

Rationalizations, Asset Write-offs, and Accelerated

Depreciation Charges

Net Income and Other

Discrete Tax Items

Charges for Labor Claims Related to a

Closed Facility in Greece

Royalty Income

Related to the Termination of a Licensing Agreement As Adjusted

Tax Expense in excess of US

Cash Tax Payments

US Tax Adjusted Diluted

Earnings Per

Share (a)

Net Sales 4,024$ -$ -$ -$ -$ 4,024$ -$ 4,024$ Cost of Goods Sold 3,066 (3) (3) - - 3,060 - 3,060 Gross Margin 958 3 3 - - 964 - 964

SAG 608 - - - - 608 - 608 Rationalizations 16 (16) - - - - - - Interest Expense 103 - - - - 103 - 103 Other (Income) Expense (128) - - (4) 155 23 - 23

Pre-tax Income (Loss) 359 19 3 4 (155) 230 - 230 Taxes 123 1 (4) - (56) 64 (29) 35 Minority Interest 12 4 2 - - 18 - 18 Goodyear Net Income 224$ 14$ 5$ 4$ (99)$ 148$ 29$ 177$

EPS 0.82$ 0.05$ 0.02$ 0.01$ (0.36)$ 0.54$ 0.11$ 0.65$

Page 19: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

19

First Quarter 2014 Significant Items (After Tax and Minority Interest)

$ (except EPS) and shares in millions

(a) – Weighted average shares outstanding – diluted for the three months ended March 31, 2014 excludes the effect of approximately 28 million equivalent shares related to the mandatory convertible preferred stock as their inclusion would have been anti-dilutive. (b) – Dilutive impact of preferred shares assumes the conversion of all 10 million shares of mandatory convertible preferred stock as of March 31, 2014. The conversion actually occurred on April 1, 2014. Also reflects 5 million weighted average shares outstanding for stock options and other securities not included in Diluted EPS-As Reported, as their inclusion was anti-dilutive.

As Reported (a)

Dilutive Impact of Preferred

Shares (b)

Net Venezuela Currency

Remeasurement Loss

Pension Curtailments

and Settlements

Rationalizations, Asset Write-

offs, and Accelerated Depreciation

Charges

Charges for Labor Claims Related to a

Closed Facility in Greece

Net Loss on Asset Sales As Adjusted

Tax Expense in excess of US

Cash Tax Payments

US Tax Adjusted Diluted

Earnings Per Share

Net Sales 4,469$ 4,469$ -$ -$ -$ -$ -$ 4,469$ -$ 4,469$ Cost of Goods Sold 3,518 3,518 - (38) (1) - - 3,479 - 3,479 Gross Margin 951 951 - 38 1 - - 990 - 990

SAG 667 667 - - - - - 667 - 667 Rationalizations 41 41 - - (41) - - - - - Interest Expense 105 105 - - - - - 105 - 105 Other Expense 168 168 (157) - - (7) (2) 2 - 2

Pre-tax Income (Loss) (30) (30) 157 38 42 7 2 216 - 216 Taxes 8 8 25 - 2 - - 35 - 35 Minority Interest 13 13 - 2 10 - - 25 - 25 Goodyear Net Income (Loss) (51)$ (51)$ 132$ 36$ 30$ 7$ 2$ 156$ -$ 156$ Preferred Dividends (7) - - - - - - - - - Net Income (Loss) Available to Common Shareholders (58)$ (51)$ 132$ 36$ 30$ 7$ 2$ 156$ -$ 156$

EPS (0.23)$ (0.18)$ 0.47$ 0.13$ 0.11$ 0.02$ 0.01$ 0.56$ -$ 0.56$

Page 20: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

$1.6

$1.9

March 31, 2015

First Quarter 2015 Liquidity Profile

(a) Total liquidity comprised of $1,613 million of cash and cash equivalents, as well as $1,888 million of unused availability under various credit agreements. (b) Includes $295 million of cash in Venezuela denominated in bolivares fuertes at 12.0 bolivares fuertes per U.S. dollar at March 31, 2015.

20

Cash & Equivalents(b)

Available Credit Lines

Liquidity Profile $3.5(a)

$ In billions

Page 21: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Note: Based on March 31, 2015 balance sheet values and excludes notes payable, capital leases and other domestic and foreign debt. (a) At March 31, 2015, the total amount outstanding under the European revolving credit facility was $194 million (€180 million). There were no letters of

credit issued at March 31, 2015. (b) At March 31, 2015, our borrowing base, and therefore our availability, under the US revolving credit facility was $587 million below the facility’s stated

amount of $2.0 billion. At March 31, 2015, there were no borrowings outstanding under the first lien revolving credit facility. Letters of credit issued totaled $372 million at March 31, 2015.

(c) At March 31, 2015, the amounts available and utilized under the Pan-European securitization program of $409 million (€380 million) totaled $255 million (€237 million).

First Quarter 2015 Maturity Schedule

$ In millions

21

$194

$1,520 $1,266

$900 $700

$150

$154

2015 2016 2017 2018 2019 2020 2021 2022 ≥ 2023

Undrawn Credit Lines

Funded Debt

$430 (a)

$2,000 (b)

(c)

Page 22: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

2015 Full-Year Industry Outlook

22

April Full-Year 2015 Guidance

February Full-Year 2015 Guidance

NA EMEA NA EMEA

Consumer Replacement (2)-(3)% ~Flat (2)-(3)% ~Flat

Consumer OE +1-2% +1-2% +1-2% +1-2%

Commercial Replacement +2-3% +0-1% +0-1% +0-1%

Commercial OE +3-4% +1-2% Flat-(1)% ~Flat

April full-year guidance unchanged for Consumer Improved Commercial outlook

Page 23: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Reconciliation for Segment Operating Income / Margin

$ In millions

23

2015 2014Total Segment Operating Income 391$ 373$

Rationalizations (16) (41) Interest expense (103) (105) Other income (expense) 128 (168) Asset write-offs and accelerated depreciation (3) (1) Corporate incentive compensation plans (13) (27) Corporate pension curtailments/settlements - (33) Intercompany profit elimination (6) (13) Retained expenses of divested operations (2) (4) Other (17) (11)

Income (Loss) before Income Taxes 359$ (30)$ United States and Foreign Tax Expense 123 8 Less: Minority Shareholders Net Income 12 13 Goodyear Net Income (Loss) 224$ (51)$

Sales $4,024 $4,469Return on Sales 5.6% (1.1)%Total Segment Operating Margin 9.7% 8.3%

Three Months EndedMarch 31,

Page 24: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Reconciliation for Total Debt and Net Debt

$ In millions

24

March 31, December 31, March 31,2015 2014 2014

Long-Term Debt and Capital Leases 5,965$ 6,216$ 7,047$ Notes Payable and Overdrafts 23 30 26 Long-Term Debt and Capital Leases Due Within One Year 238 148 47 Total Debt 6,226$ 6,394$ 7,120$ Less: Cash and Cash Equivalents 1,613 2,161 1,853

Net debt 4,613$ 4,233$ 5,267$

Page 25: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings

Reconciliation for Free Cash Flow from Operations

a) Working capital represents total changes in accounts receivable, inventories and accounts payable – trade. b) 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. c) Other includes amortization and write-off of debt issuance costs, net pension curtailments and settlements, net rationalization charges, net (gains)

losses on asset sales, net Venezuela currency loss, compensation and benefits less pension expense, other current liabilities, and other assets and liabilities. 25

Trailing Twelve Months Ended

($ in millions)March 31,

2015Dec. 31,

2014Sept. 30,

2014June 30,

2014March 31,

2014March 31,

2015

Net Income (Loss) 236$ 2,128$ 199$ 232$ (38)$ 2,795$ Depreciation and Amortization 172 179 182 188 183 721

Change in Working Capital (a) (569) 969 (362) (18) (590) 20

Pension Expense (b) 36 34 36 38 50 144

Provision for Deferred Income Taxes 91 (2,031) 62 20 (21) (1,858)

Gain on Recognition of Deferred Royalty Income (155) - - - - (155)Capital Expenditures (204) (289) (193) (212) (229) (898)

Other (c) (21) 103 163 66 132 311Free Cash Flow from Operations (non-GAAP) (414)$ 1,093$ 87$ 314$ (513)$ 1,080$

Capital Expenditures 204 289 193 212 229 898Pension Contributions and Direct Payments (26) (46) (35) (34) (1,223) (141)Rationalization Payments (26) (57) (50) (83) (36) (216)

Cash Flow from Operating Activities (GAAP) (262)$ 1,279$ 195$ 409$ (1,543)$ 1,621$

The amounts below are calculated from the Consolidated Statements of Cash Flows except for pension expense, which is as reported in the pension-related note in the Notes to Consolidated Financial Statements.

Three Months Ended

Page 26: First Quarter 2015 Conference Call...Highlights . 3 • Record first quarter Segment Operating Income of $391 million with 9.7% SOI margin • North America sets first quarter earnings