The Goodyear Tire & Rubber Company GT reported a 33.3% increase in adjusted earnings per share to 72 cents in the first quarter of 2016 from 54 cents recorded a year ago (all excluding special items). Moreover, earnings surpassed the Zacks Consensus Estimate of 70 cents. Adjusted net income surged 31.8% to $195 million from $148 million in the first quarter of 2015. Including special items, the company reported a net income of $184 million or 68 cents per share in first-quarter 2016. In the year-ago quarter, it recorded net income of $224 million or 82 cents per share. Revenues in the reported quarter fell 8.3% year over year to $3.69 billion. Moreover, the figure missed the Zacks Consensus Estimate of $3.97 billion. The year-over-year decline in the top line can be attributed to unfavorable foreign currency translation and deconsolidation of the subsidiary in Venezuela. Tire unit volumes improved 2% to 41.5 million in the first quarter of 2016, driven by growth in the Asia Pacific region. Both original equipment unit volume and replacement tire shipments increased 2% year over year. Segment operating income rose 8% to $419 million in the reported quarter from $388 million a year ago. The year-over-year rise was driven by favorable price/mix net of raw materials as well as higher volume, partially offset by the deconsolidation of the Venezuelan subsidiary and higher selling, administrative and general expenses. Segment Details Revenues at the Americas segment fell 13% year over year to $1.95 billion. The deterioration was due to a 6% decrease in tire unit volume to 18 million units. The decline in unit volumes primarily resulted from the deconsolidation of the Venezuelan subsidiary and the sale of the former Goodyear Dunlop Tires North America Ltd. business. Original equipment unit volume went down 7% year over year. Also, replacement tire shipments dropped 6%. Segment operating income improved 5% to $260 million, driven by favorable price/mix net of raw materials, partially offset by the deconsolidation of the Venezuelan subsidiary and lower volume. Revenues from the Europe, Middle East and Africa segment decreased 6% to $1.25 billion. Revenues were mainly hurt by unfavorable price/mix and foreign currency translation. Tire unit sales increased 2% to 16.2 million units. Original equipment unit volume was up 5%. Replacement tire shipments remained stable year over year. Segment operating income improved 10% to $80 million, primarily backed by favorable price/mix net of raw materials and lower conversion costs. Revenues from the Asia-Pacific segment increased 9% to $489 million due to higher tire volume, partially offset by unfavorable foreign currency translation. Tire unit volume surged 28% year over year to 7.3 million units. Original equipment unit volume was up 14%, while replacement tire shipments surged 41% year over year. Segment operating income improved 18% to $79 million, primarily due to higher volume and favorable price/mix net of raw materials. Financial Position Goodyear had cash and cash equivalents of $1.08 billion as of Mar 31, 2016, down from $1.48 billion as of Dec 31, 2015. Long-term debt and capital leases amounted to $6.0 billion as of Mar 31, 2016, up from $5.66 billion as of Dec 31, 2015. Cash outflow from operations amounted to $381 million in the first quarter of 2016 compared with $262 million in the year-ago period. Meanwhile, capital expenditure was $253 million compared with $204 million a year ago. Share Repurchase During the reported quarter, Goodyear repurchased 1.6 million shares for $50 million. Guidance Goodyear expects annual segment operating income to increase 10–15% in 2016. The company also intends to generate positive free cash flow (excluding pension pre-funding) over this period. Goodyear is one of the largest tire manufacturing companies in the world. The company currently carries a Zacks Rank #2 (Buy). Other Stocks to Consider Other well-ranked automobile stocks include Federal-Mogul Holdings Corporation FDML, Superior Industries International, Inc. SUP and Lear Corp. LEA. Each of these stocks sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SUPERIOR INDS (SUP): Free Stock Analysis Report LEAR CORPORATN (LEA): Free Stock Analysis Report FEDERAL MOGUL-A (FDML): Free Stock Analysis Report GOODYEAR TIRE (GT): Free Stock Analysis Report To read this article on Zacks.com click here.