The Goodyear Tire & Rubber Company
11/04/2024 | Press release | Distributed by Public on 11/04/2024 15:48
Goodyear Announces Q3 2024 Results, Increases Goodyear Forward Targets
Third quarter Goodyearnet loss of $34 million(12 centsper share); adjusted net income of $105 million(37 centsper share)
Segment operating income of $347 million; SOI margin of 7.2%, up ~70 bps YoY
Fourth consecutive quarter of SOI margin expansion; TTM up ~300 bps YoY
Americas segment operating income of $251 million, SOI margin of 8.8%
Asia Pacificsegment operating income of $72 million, SOI margin of 11.7%
Goodyear Forward targets increased, portfolio optimization in progress
AKRON, Ohio, Nov. 4, 2024/PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) reported third quarter 2024 results today and the company will host an investor call tomorrow morning at 8:30 a.m. eastern timeled by Mark Stewart, Goodyear'schief executive officer and president, and Christina Zamarro, the company's executive vice president and chief financial officer. The management team will share insights on third quarter performance and progress on the Goodyear Forward transformation plan.
"As a result of the consistent and strong execution of our Goodyear Forward transformation plan, we successfully achieved four consecutive quarters of segment operating margin expansion. These tangible results are not only a testament to the talent of our team, but also to the strong foundation of Goodyear," said Chief Executive Officer and President Mark Stewart. "Throughout the company, we are delivering solid results. Due to the strong momentum underway, we are increasing our target for gross run-rate gains from Goodyear Forward to $1.5 billionby the end of 2025."
"This increase will enable us to realize significant year-over-year earnings benefits in both 2024 and 2025 from the program," continued Stewart. "We have raised our guidance for 2024 Goodyear Forward gross benefits to $450 millionand we continue to expect an additional $750 millionof year-over-year gross benefits in 2025. We remain confident we will achieve our 10% SOI margin and 2.0x - 2.5x leverage targets in the fourth quarter of next year."
The Goodyear Forward transformation plan was announced in November 2023to create a more profitable enterprise and drive shareholder value creation. Run rate cost reduction and top line benefits have been increased by $200 millionabove the original $1.3 billiontarget. The company continues to expect to realize gross proceeds in excess of $2 billion from portfolio optimization and reaffirms its commitment to net leverage of 2.0x - 2.5x by the end of 2025.
Goodyear'sthird quarter 2024 sales were $4.8 billion, with tire unit volumes totaling 42.5 million. Third quarter 2024 Goodyear net loss was $34 million(12 centsper share) compared to a Goodyearnet loss of $89 million(31 centsper share) a year ago. The third quarter of 2024 included several significant items including, on a pre-tax basis, an intangible asset impairment of $125 million, Goodyear Forward costs of $25 millionand rationalization charges of $11 million. The third quarter of 2023 included pre-tax rationalization charges of $198 million. The intangible asset impairment includes a significant reduction in the carrying value of the company's tier three Mastercraft and Roadmaster brands given lower volume as a result of increased competition in opening price points in the U.S. market and plans under Goodyear Forward to increase overall profitability. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.
Third quarter 2024 adjusted net income was $105 millioncompared to adjusted net income of $104 millionin the prior year's quarter. Adjusted earnings per share was $0.37, compared to $0.36in the prior year's quarter. Per share amounts are diluted.
The company reported segment operating income of $347 millionin the third quarter of 2024, up $11 millionfrom a year ago. The increase in segment operating income reflects benefits of $123 millionfrom the Goodyear Forward transformation plan and $17 millionfrom insurance proceeds, net of current year expenses, primarily related to storm damage in prior years. These were partly offset by the impact of lower tire volume of $74 millionand inflation of $53 million.
Additional earnings materials can be found on Goodyear'sinvestor relations website at http://investor.goodyear.com.
Year-to-Date Results
Goodyear'ssales for the first nine months of 2024 were $13.9 billionwith tire unit volumes totaling 123.0 million. First nine months 2024 Goodyear net loss was $6 million(2 centsper share) compared to a Goodyearnet loss of $398 million($1.40per share) a year ago. The year over year improvement was driven by increases in segment operating income. The first nine months of 2024 also included several significant items including, on a pre-tax basis, an intangible asset impairment of $125 million, Goodyear Forward costs of $92 million, rationalization charges of $52 million, and a benefit of $87 millionfrom asset and other sales. The first nine months of 2023 included, on a pre-tax basis, rationalization charges of $302 millionand a $58 millionbenefit from asset and other sales.
First nine months 2024 adjusted net income was $189 millioncompared to an adjusted net loss of $75 millionin the prior year. Adjusted earnings per share was $0.66, compared to a loss of $0.26in the prior year.
The company reported segment operating income of $933 millionfor the first nine months of 2024, up $348 millionfrom a year ago. The increase in segment operating income reflects benefits of $285 millionfrom the Goodyear Forward transformation plan, $235 millionfrom net price/mix versus raw material costs, $69 millionfrom insurance proceeds, net of current year expenses, and $55 millionfrom the 2023 negative impact of the Tupelo storm. These were partially offset by lower tire volume of $143 millionand a net headwind of $116 millionfrom inflationary costs.
First nine months 2024 total cash flows from operating activities was a use of $591 millioncompared with a use of $204 millionin the first nine months of 2023.
Reconciliation of Non-GAAP Financial Measures
See "Non-GAAP Financial Measures" and "Financial Tables" for further explanation and reconciliation tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2024 and 2023 periods.
Business Segment Results
AMERICAS
|
|
Third Quarter |
|
Nine Months |
||||
|
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Tire Units |
21.0 |
|
22.9 |
|
59.6 |
|
64.2 |
|
Net Sales |
$2,858 |
|
$3,120 |
|
$8,143 |
|
$8,926 |
|
Segment Operating Income |
251 |
|
258 |
|
671 |
|
440 |
|
Segment Operating Margin |
8.8 % |
|
8.3 % |
|
8.2 % |
|
4.9 % |
Americas' third quarter 2024 sales of $2.9 billionwere 8.4% lower, driven by declines in replacement volume. Tire unit volume decreased 8.3%. Replacement tire unit volume decreased 11.3%, reflecting industry member declines in the U.S. and actions taken to reduce exposure in the low-end of the market. The U.S. industry non-members, generally representing low-cost imported product, grew significantly in the quarter. Original equipment unit volumes were up 7.9%, reflecting new fitment wins.
Third quarter 2024 segment operating income of $251 milliondecreased $7 millionfrom the prior year's quarter. The decrease was driven by lower volume, inflation, and unfavorable price/mix and raw material costs. These headwinds were largely offset by Goodyear Forward savings and insurance proceeds related to storm damage in prior years.
EMEA
|
|
Third Quarter |
|
Nine Months |
||||
|
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Tire Units |
12.2 |
|
12.5 |
|
36.3 |
|
37.5 |
|
Net Sales |
$1,348 |
|
$1,374 |
|
$3,974 |
|
$4,207 |
|
Segment Operating Income |
24 |
|
22 |
|
67 |
|
11 |
|
Segment Operating Margin |
1.8 % |
|
1.6 % |
|
1.7 % |
|
0.3 % |
EMEA's third quarter 2024 sales of $1.3 billionwere 1.9% lower, driven by tire volume declines and the negative impact of changes in foreign currency exchange rates, partially offset by favorable price/mix. Tire unit volume decreased 2.9%. Original equipment unit volumes decreased 5.6%, reflecting lower OEM production. Replacement tire unit volume decreased 2.1%, driven by decreased volume in smaller rim sizes.
Third quarter 2024 segment operating income of $24 millionwas up $2 millioncompared to the prior year's quarter. Segment operating income benefitted from the Goodyear Forward plan and favorable net price/mix versus raw material costs. These benefits were partly offset by inflation, other costs, and unfavorable fixed overhead absorption.
ASIA PACIFIC
|
|
Third Quarter |
|
Nine Months |
||||
|
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Tire Units |
9.3 |
|
9.9 |
|
27.1 |
|
26.2 |
|
Net Sales |
$618 |
|
$648 |
|
$1,814 |
|
$1,817 |
|
Segment Operating Income |
72 |
|
56 |
|
195 |
|
134 |
|
Segment Operating Margin |
11.7 % |
|
8.6 % |
|
10.7 % |
|
7.4 % |
Asia Pacific'sthird quarter 2024 sales decreased 4.6% to $618 million, driven by lower replacement volume. Tire unit volume decreased 5.4%. Replacement tire unit volume decreased 13.0%, driven by declines in our key markets, including Australia, Chinaand India. Original equipment unit volume increased 3.6%, driven by growth in EV fitments.
Third quarter 2024 segment operating income of $72 millionwas up $16 millionfrom prior year driven by benefits from Goodyear Forward, favorable net price/mix versus raw material costs, and lower net inflationary costs. These factors were partly offset by lower volume.
Conference Call
The Company will host an investor call on Tuesday, November 5at 8:30 a.m. ET. Please visit Goodyear'sinvestor relations website: http://investor.goodyear.com, for additional earnings materials.
Participating in the conference call will be Mark W. Stewart, chief executive officer and president, and Christina L. Zamarro, executive vice president and chief financial officer.
The investor call can be accessed on the website or via telephone by calling either (800) 343-4849 or (203) 518-9848 before 8:25 a.m.and providing the conference ID "Goodyear." A replay will be available by calling (888) 566-0831 or (402) 220-0121. The replay will also be available on the website.
About Goodyear
Goodyearis one of the world's largest tire companies. It employs about 71,000 people and manufactures its products in 54 facilities in 21 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 Goodyearand its products, go to www.goodyear.com/corporate.
Forward-Looking Statements
Certain information contained in this news release 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 the Goodyear Forward plan and our other strategic initiatives, including the sale of our off-the-road tire business; risks relating to the ability to consummate the sale of our off-the-road tire business on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy other conditions to closing; actions and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; foreign currency translation and transaction risks; 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.
Non-GAAP Financial Measures (unaudited)
This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives 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. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income and Margin are useful because they represent the aggregate value of income created by the company's SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales).
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company's Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (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, impairments, asset sales and certain other significant items.
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 following tables for reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
|
The Goodyear Tire & Rubber Company and Subsidiaries Financial Tables (Unaudited) Table 1: Consolidated Statement of Operations |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||
|
|
September 30, |
|
September 30, |
|
||||
|
(In millions, except per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net Sales |
$ 4,824 |
|
$ 5,142 |
|
$ 13,931 |
|
$ 14,950 |
|
|
Cost of Goods Sold |
3,881 |
|
4,171 |
|
11,218 |
|
12,487 |
|
|
Selling, Administrative and General Expense |
663 |
|
673 |
|
2,090 |
|
2,045 |
|
|
Intangible Asset Impairments |
125 |
|
- |
|
125 |
|
- |
|
|
Rationalizations |
11 |
|
198 |
|
52 |
|
302 |
|
|
Interest Expense |
135 |
|
138 |
|
391 |
|
403 |
|
|
Other (Income) Expense |
34 |
|
21 |
|
(8) |
|
82 |
|
|
Income (Loss) before Income Taxes |
(25) |
|
(59) |
|
63 |
|
(369) |
|
|
United States and Foreign Tax Expense |
9 |
|
25 |
|
75 |
|
22 |
|
|
Net Income (Loss) |
(34) |
|
(84) |
|
(12) |
|
(391) |
|
|
Less: Minority Shareholders' Net Income (Loss) |
- |
|
5 |
|
(6) |
|
7 |
|
|
Goodyear Net Income (Loss) |
$ (34) |
|
$ (89) |
|
$ (6) |
|
$ (398) |
|
|
Goodyear Net Income (Loss) - Per Share of Common Stock |
|
|
|
|
|
|
|
|
|
Basic |
$ (0.12) |
|
$ (0.31) |
|
$ (0.02) |
|
$ (1.40) |
|
|
Weighted Average Shares Outstanding |
287 |
|
285 |
|
286 |
|
285 |
|
|
Diluted |
$ (0.12) |
|
$ (0.31) |
|
$ (0.02) |
|
$ (1.40) |
|
|
Weighted Average Shares Outstanding |
287 |
|
285 |
|
286 |
|
285 |
|
|
|
|
|
|
|
|
|
|
|
|
Table 2: Consolidated Balance Sheets |
|||
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
(In millions, except share data) |
2024 |
|
2023 |
|
Assets: |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and Cash Equivalents |
$ 905 |
|
$ 902 |
|
Accounts Receivable, less Allowance - $94 ($102 in 2023) |
3,380 |
|
2,731 |
|
Inventories: |
|
|
|
|
Raw Materials |
796 |
|
785 |
|
Work in Process |
212 |
|
206 |
|
Finished Products |
2,804 |
|
2,707 |
|
|
3,812 |
|
3,698 |
|
Assets Held for Sale |
495 |
|
- |
|
Prepaid Expenses and Other Current Assets |
309 |
|
319 |
|
Total Current Assets |
8,901 |
|
7,650 |
|
Goodwill |
759 |
|
781 |
|
Intangible Assets |
814 |
|
969 |
|
Deferred Income Taxes |
1,662 |
|
1,630 |
|
Other Assets |
1,147 |
|
1,075 |
|
Operating Lease Right-of-Use Assets |
981 |
|
985 |
|
Property, Plant and Equipment, less Accumulated Depreciation - $12,515 ($12,472 in 2023) |
8,285 |
|
8,492 |
|
Total Assets |
$ 22,549 |
|
$ 21,582 |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts Payable - Trade |
$ 4,050 |
|
$ 4,326 |
|
Compensation and Benefits |
685 |
|
663 |
|
Other Current Liabilities |
1,261 |
|
1,165 |
|
Notes Payable and Overdrafts |
587 |
|
344 |
|
Operating Lease Liabilities due Within One Year |
202 |
|
200 |
|
Long Term Debt and Finance Leases due Within One Year |
1,013 |
|
449 |
|
Total Current Liabilities |
7,798 |
|
7,147 |
|
Operating Lease Liabilities |
829 |
|
825 |
|
Long Term Debt and Finance Leases |
7,428 |
|
6,831 |
|
Compensation and Benefits |
877 |
|
974 |
|
Deferred Income Taxes |
103 |
|
83 |
|
Other Long Term Liabilities |
610 |
|
885 |
|
Total Liabilities |
17,645 |
|
16,745 |
|
Commitments and Contingent Liabilities |
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Goodyear Shareholders' Equity: |
|
|
|
|
Common Stock, no par value: |
|
|
|
|
Authorized, 450 million shares, Outstanding shares - 285 million in 2024 (284 million in 2023) |
285 |
|
284 |
|
Capital Surplus |
3,152 |
|
3,133 |
|
Retained Earnings |
5,080 |
|
5,086 |
|
Accumulated Other Comprehensive Loss |
(3,772) |
|
(3,835) |
|
Goodyear Shareholders' Equity |
4,745 |
|
4,668 |
|
Minority Shareholders' Equity - Nonredeemable |
159 |
|
169 |
|
Total Shareholders' Equity |
4,904 |
|
4,837 |
|
Total Liabilities and Shareholders' Equity |
$ 22,549 |
|
$ 21,582 |
|
|
|
|
|
|
Table 3: Consolidated Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
||
|
|
September 30, |
||
|
(In millions) |
2024 |
|
2023 |
|
Cash Flows from Operating Activities: |
|
|
|
|
Net Income (Loss) |
$ (12) |
|
$ (391) |
|
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: |
|
|
|
|
Depreciation and Amortization |
800 |
|
751 |
|
Amortization and Write-Off of Debt Issuance Costs |
10 |
|
11 |
|
Intangible Asset Impairment |
125 |
|
- |
|
Provision for Deferred Income Taxes |
(37) |
|
(138) |
|
Net Pension Curtailments and Settlements |
(5) |
|
40 |
|
Net Rationalization Charges |
52 |
|
302 |
|
Rationalization Payments |
(149) |
|
(72) |
|
Net (Gains) Losses on Asset Sales |
(95) |
|
(68) |
|
Gain on Insurance Recoveries for Damaged Property, Plant and Equipment |
(61) |
|
- |
|
Operating Lease Expense |
249 |
|
224 |
|
Operating Lease Payments |
(211) |
|
(207) |
|
Pension Contributions and Direct Payments |
(45) |
|
(54) |
|
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: |
|
|
|
|
Accounts Receivable |
(658) |
|
(816) |
|
Inventories |
(259) |
|
590 |
|
Accounts Payable - Trade |
(207) |
|
(585) |
|
Compensation and Benefits |
39 |
|
45 |
|
Other Current Liabilities |
(58) |
|
222 |
|
Other Assets and Liabilities |
(69) |
|
(58) |
|
Total Cash Flows from Operating Activities |
(591) |
|
(204) |
|
Cash Flows from Investing Activities: |
|
|
|
|
Capital Expenditures |
(912) |
|
(807) |
|
Insurance Recoveries for Damaged Property, Plant and Equipment |
48 |
|
- |
|
Cash Proceeds from Sale and Leaseback Transactions |
16 |
|
73 |
|
Asset Dispositions |
110 |
|
3 |
|
Short Term Securities Acquired |
- |
|
(96) |
|
Short Term Securities Redeemed |
2 |
|
88 |
|
Long Term Securities Acquired |
- |
|
(11) |
|
Long Term Securities Redeemed |
4 |
|
6 |
|
Notes Receivable |
(28) |
|
(61) |
|
Other Transactions |
1 |
|
(13) |
|
Total Cash Flows from Investing Activities |
(759) |
|
(818) |
|
Cash Flows from Financing Activities: |
|
|
|
|
Short Term Debt and Overdrafts Incurred |
1,034 |
|
793 |
|
Short Term Debt and Overdrafts Paid |
(803) |
|
(863) |
|
Long Term Debt Incurred |
10,315 |
|
7,321 |
|
Long Term Debt Paid |
(9,180) |
|
(6,464) |
|
Common Stock Issued |
(3) |
|
(2) |
|
Transactions with Minority Interests in Subsidiaries |
(2) |
|
(4) |
|
Debt Related Costs and Other Transactions |
(46) |
|
(7) |
|
Total Cash Flows from Financing Activities |
1,315 |
|
774 |
|
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash |
(10) |
|
(5) |
|
Net Change in Cash, Cash Equivalents and Restricted Cash |
(45) |
|
(253) |
|
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period |
985 |
|
1,311 |
|
Cash, Cash Equivalents and Restricted Cash at End of the Period |
$ 940 |
|
$ 1,058 |
|
|
|
|
|
|
Table 4: Reconciliation of Segment Operating Income & Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, |
|
September 30, |
||||
|
(In millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Total Segment Operating Income |
$ 347 |
|
$ 336 |
|
$ 933 |
|
$ 585 |
|
Less: |
|
|
|
|
|
|
|
|
Intangible Asset Impairment |
125 |
|
- |
|
125 |
|
- |
|
Rationalizations |
11 |
|
198 |
|
52 |
|
302 |
|
Interest Expense |
135 |
|
138 |
|
391 |
|
403 |
|
Other (Income) Expense |
34 |
|
21 |
|
(8) |
|
82 |
|
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, Net |
25 |
|
8 |
|
119 |
|
21 |
|
Corporate Incentive Compensation Plans |
14 |
|
2 |
|
50 |
|
43 |
|
Retained Expenses of Divested Operations |
3 |
|
2 |
|
11 |
|
10 |
|
Other |
25 |
|
26 |
|
130 |
|
93 |
|
Income (Loss) before Income Taxes |
$ (25) |
|
$ (59) |
|
$ 63 |
|
$ (369) |
|
United States and Foreign Tax Expense |
9 |
|
25 |
|
75 |
|
22 |
|
Less: Minority Shareholders' Net Income (Loss) |
- |
|
5 |
|
(6) |
|
7 |
|
Goodyear Net Income (Loss) |
$ (34) |
|
$ (89) |
|
$ (6) |
|
$ (398) |
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ 4,824 |
|
$ 5,142 |
|
$ 13,931 |
|
$ 14,950 |
|
Return on Net Sales |
-0.7 % |
|
-1.7 % |
|
0.0 % |
|
-2.7 % |
|
Total Segment Operating Margin |
7.2 % |
|
6.5 % |
|
6.7 % |
|
3.9 % |
|
|
|
|
|
|
|
|
|
|
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share |
|||||||||||||||
|
Third Quarter 2024 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except |
As |
|
Intangible Asset |
|
Rationalizations, Asset |
|
Goodyear |
|
Indirect Tax Settlements |
|
Debica Fire Impact and |
|
Americas Storm |
|
As |
|
Net Sales |
$ 4,824 |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ 4,824 |
|
Cost of Goods Sold |
3,881 |
|
- |
|
(19) |
|
- |
|
- |
|
(3) |
|
20 |
|
3,879 |
|
Gross Margin |
943 |
|
- |
|
19 |
|
- |
|
- |
|
3 |
|
(20) |
|
945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAG |
663 |
|
- |
|
(6) |
|
(14) |
|
- |
|
- |
|
- |
|
643 |
|
Intangible Asset Impairment |
125 |
|
(125) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Rationalizations |
11 |
|
- |
|
(11) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Interest Expense |
135 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
135 |
|
Other (Income) Expense |
34 |
|
- |
|
- |
|
(11) |
|
- |
|
- |
|
- |
|
23 |
|
Pre-tax Income (Loss) |
(25) |
|
125 |
|
36 |
|
25 |
|
- |
|
3 |
|
(20) |
|
144 |
|
Taxes |
9 |
|
31 |
|
3 |
|
6 |
|
(7) |
|
1 |
|
(5) |
|
38 |
|
Minority Interest |
- |
|
- |
|
1 |
|
- |
|
- |
|
- |
|
- |
|
1 |
|
Goodyear Net Income (Loss) |
$ (34) |
|
$ 94 |
|
$ 32 |
|
$ 19 |
|
$ 7 |
|
$ 2 |
|
$ (15) |
|
$ 105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$ (0.12) |
|
$ 0.33 |
|
$ 0.11 |
|
$ 0.07 |
|
$ 0.02 |
|
$ 0.01 |
|
$ (0.05) |
|
$ 0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2023 |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
(In millions, except |
As |
|
Rationalizations, Asset |
|
Debica Fire |
|
Tupelo Storm |
|
Pension Settlement |
|
Other Legal |
|
Asset and |
|
Indirect Tax Settlements |
|
As |
|
Net Sales |
$ 5,142 |
|
$ - |
|
$ 11 |
|
$ 33 |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ 5,186 |
|
Cost of Goods Sold |
4,171 |
|
(8) |
|
(3) |
|
28 |
|
- |
|
- |
|
- |
|
- |
|
4,188 |
|
Gross Margin |
971 |
|
8 |
|
14 |
|
5 |
|
- |
|
- |
|
- |
|
- |
|
998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAG |
673 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
673 |
|
Rationalizations |
198 |
|
(198) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Interest Expense |
138 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
138 |
|
Other (Income) Expense |
21 |
|
- |
|
- |
|
- |
|
(4) |
|
(4) |
|
6 |
|
- |
|
19 |
|
Pre-tax Income (Loss) |
(59) |
|
206 |
|
14 |
|
5 |
|
4 |
|
4 |
|
(6) |
|
- |
|
168 |
|
Taxes |
25 |
|
22 |
|
1 |
|
1 |
|
1 |
|
1 |
|
(2) |
|
8 |
|
57 |
|
Minority Interest |
5 |
|
- |
|
1 |
|
- |
|
1 |
|
- |
|
- |
|
- |
|
7 |
|
Goodyear Net Income (Loss) |
$ (89) |
|
$ 184 |
|
$ 12 |
|
$ 4 |
|
$ 2 |
|
$ 3 |
|
$ (4) |
|
$ (8) |
|
$ 104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$ (0.31) |
|
$ 0.64 |
|
$ 0.04 |
|
$ 0.01 |
|
$ 0.01 |
|
$ 0.01 |
|
$ (0.01) |
|
$ (0.03) |
|
$ 0.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (continued) |
|||||||||||||||||||||
|
First Nine Months 2024 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except |
As |
|
Rationalizations, Asset |
|
Intangible Asset Impairment |
|
Goodyear Forward Costs |
|
South Africa Flood Impact |
|
Pension Settlement |
|
Indirect Tax Settlements |
|
Debica Fire Impact |
|
Americas Storm |
|
Asset and |
|
As |
|
Net Sales |
$ 13,931 |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ 13,931 |
|
Cost of Goods Sold |
11,218 |
|
(95) |
|
- |
|
- |
|
(3) |
|
- |
|
8 |
|
26 |
|
39 |
|
- |
|
11,193 |
|
Gross Margin |
2,713 |
|
95 |
|
- |
|
- |
|
3 |
|
- |
|
(8) |
|
(26) |
|
(39) |
|
- |
|
2,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAG |
2,090 |
|
(24) |
|
- |
|
(81) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1,985 |
|
Intangible Asset Impairment |
125 |
|
- |
|
(125) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Rationalizations |
52 |
|
(52) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Interest Expense |
391 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
391 |
|
Other (Income) Expense |
(8) |
|
- |
|
- |
|
(11) |
|
- |
|
5 |
|
2 |
|
- |
|
- |
|
87 |
|
75 |
|
Pre-tax Income (Loss) |
63 |
|
171 |
|
125 |
|
92 |
|
3 |
|
(5) |
|
(10) |
|
(26) |
|
(39) |
|
(87) |
|
287 |
|
Taxes |
75 |
|
15 |
|
31 |
|
22 |
|
- |
|
(1) |
|
(9) |
|
(6) |
|
(9) |
|
(26) |
|
92 |
|
Minority Interest |
(6) |
|
15 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(3) |
|
- |
|
- |
|
6 |
|
Goodyear Net Income (Loss) |
$ (6) |
|
$ 141 |
|
$ 94 |
|
$ 70 |
|
$ 3 |
|
$ (4) |
|
$ (1) |
|
$ (17) |
|
$ (30) |
|
$ (61) |
|
$ 189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$ (0.02) |
|
$ 0.49 |
|
$ 0.33 |
|
$ 0.24 |
|
$ 0.01 |
|
$ (0.01) |
|
$ (0.01) |
|
$ (0.06) |
|
$ (0.10) |
|
$ (0.21) |
|
$ 0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Nine Months 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions, except |
As |
|
Rationalizations, |
|
Tupelo Storm |
|
Pension Settlement |
|
Debica Fire |
|
Other Legal |
|
Environmental
Remediation |
|
Foreign Currency |
|
Indirect Tax Settlements and Discrete Tax Items |
|
Asset and |
|
As |
|
Net Sales |
$ 14,950 |
|
$ - |
|
$ 110 |
|
$ - |
|
$ 11 |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ - |
|
$ 15,071 |
|
Cost of Goods Sold |
12,487 |
|
(31) |
|
41 |
|
- |
|
(3) |
|
3 |
|
5 |
|
- |
|
- |
|
- |
|
12,502 |
|
Gross Margin |
2,463 |
|
31 |
|
69 |
|
- |
|
14 |
|
(3) |
|
(5) |
|
- |
|
- |
|
- |
|
2,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAG |
2,045 |
|
10 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
2,055 |
|
Rationalizations |
302 |
|
(302) |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Interest Expense |
403 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
403 |
|
Other (Income) Expense |
82 |
|
- |
|
- |
|
(40) |
|
- |
|
(8) |
|
- |
|
5 |
|
- |
|
58 |
|
97 |
|
Pre-tax Income (Loss) |
(369) |
|
323 |
|
69 |
|
40 |
|
14 |
|
5 |
|
(5) |
|
(5) |
|
- |
|
(58) |
|
14 |
|
Taxes |
22 |
|
45 |
|
13 |
|
9 |
|
1 |
|
2 |
|
(1) |
|
- |
|
5 |
|
(17) |
|
79 |
|
Minority Interest |
7 |
|
- |
|
- |
|
1 |
|
1 |
|
- |
|
- |
|
- |
|
1 |
|
- |
|
10 |
|
Goodyear Net Income (Loss) |
$ (398) |
|
$ 278 |
|
$ 56 |
|
$ 30 |
|
$ 12 |
|
$ 3 |
|
$ (4) |
|
$ (5) |
|
$ (6) |
|
$ (41) |
|
$ (75) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
$ (1.40) |
|
$ 0.98 |
|
$ 0.20 |
|
$ 0.10 |
|
$ 0.04 |
|
$ 0.01 |
|
$ (0.01) |
|
$ (0.02) |
|
$ (0.02) |
|
$ (0.14) |
|
$ (0.26) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEDIA CONTACT:
DOUG GRASSIAN
330.796.3855
[email protected]
ANALYST CONTACT:
GREG SHANK
330.796.5008
[email protected]
SOURCE The Goodyear Tire & Rubber Company