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Goodyear Announces Q3 2024 Results, Increases Goodyear Forward Targets

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Goodyear (NASDAQ: GT) reported a Q3 2024 net loss of $34 million ($0.12 per share), with adjusted net income of $105 million ($0.37 per share). Sales reached $4.8 billion with tire unit volumes of 42.5 million. The company achieved segment operating income of $347 million, with an SOI margin of 7.2%, marking the fourth consecutive quarter of margin expansion. Goodyear Forward transformation targets were increased to $1.5 billion by end of 2025, up $200 million from original target. The company expects $450 million in gross benefits for 2024 and additional $750 million in 2025, maintaining its 10% SOI margin target.

Goodyear (NASDAQ: GT) ha riportato una perdita netta di 34 milioni di dollari nel terzo trimestre del 2024 (0,12 dollari per azione), con un reddito netto rettificato di 105 milioni di dollari (0,37 dollari per azione). I ricavi hanno raggiunto i 4,8 miliardi di dollari con volumi di pneumatici di 42,5 milioni. L’azienda ha registrato un utile operativo di segmento di 347 milioni di dollari, con un margine SOI del 7,2%, segnando il quarto trimestre consecutivo di espansione del margine. Gli obiettivi di trasformazione Goodyear Forward sono stati aumentati a 1,5 miliardi di dollari entro la fine del 2025, con un incremento di 200 milioni rispetto all'obiettivo originale. L'azienda prevede benefici lordi di 450 milioni di dollari per il 2024 e ulteriori 750 milioni nel 2025, mantenendo il proprio obiettivo di margine SOI del 10%.

Goodyear (NASDAQ: GT) reportó una pérdida neta de 34 millones de dólares en el tercer trimestre de 2024 (0,12 dólares por acción), con un ingreso neto ajustado de 105 millones de dólares (0,37 dólares por acción). Las ventas alcanzaron los 4,8 mil millones de dólares con volúmenes de unidades de neumáticos de 42,5 millones. La compañía logró un ingreso operativo de segmento de 347 millones de dólares, con un margen SOI del 7,2%, marcando el cuarto trimestre consecutivo de expansión de margen. Los objetivos de transformación Goodyear Forward se incrementaron a 1,5 mil millones de dólares para finales de 2025, un aumento de 200 millones respecto al objetivo original. La compañía espera beneficios brutos de 450 millones de dólares para 2024 y 750 millones adicionales en 2025, manteniendo su objetivo de margen SOI del 10%.

굿이어 (NASDAQ: GT)는 2024년 3분기에 3,400만 달러의 순손실(주당 0.12달러)을 보고했으며, 조정된 순이익은 1억 500만 달러(주당 0.37달러)입니다. 매출은 48억 달러에 도달했으며, 타이어 유닛 볼륨은 4,250만 개입니다. 이 회사는 3억 4,700만 달러의 세그먼트 운영 수익을 달성했으며, SOI 마진은 7.2%로 마진 확대의 네 번째 연속 분기를 기록했습니다. 굿이어 포워드 변환 목표는 2025년 말까지 15억 달러로 증가했으며, 이는 원래 목표보다 2억 달러 증가한 수치입니다. 회사는 2024년에 4억 5천만 달러의 총 이익과 2025년에 추가로 7억 5천만 달러를 기대하고 있으며, 10%의 SOI 마진 목표를 유지하고 있습니다.

Goodyear (NASDAQ: GT) a annoncé une perte nette de 34 millions de dollars au troisième trimestre 2024 (0,12 dollar par action), avec un bénéfice net ajusté de 105 millions de dollars (0,37 dollar par action). Les ventes ont atteint 4,8 milliards de dollars avec des volumes de pneus de 42,5 millions d'unités. L'entreprise a réalisé un résultat d'exploitation de segment de 347 millions de dollars, avec une marge SOI de 7,2 %, marquant le quatrième trimestre consécutif d'expansion de la marge. Les objectifs de transformation Goodyear Forward ont été augmentés à 1,5 milliard de dollars d'ici fin 2025, soit 200 millions de dollars de plus que l'objectif initial. L'entreprise s'attend à 450 millions de dollars de bénéfices bruts pour 2024 et 750 millions supplémentaires pour 2025, tout en maintenant son objectif de marge SOI de 10%.

Goodyear (NASDAQ: GT) berichtete im dritten Quartal 2024 einen Nettoverlust von 34 Millionen Dollar (0,12 Dollar pro Aktie) bei einem bereinigten Nettogewinn von 105 Millionen Dollar (0,37 Dollar pro Aktie). Die Umsätze erreichten 4,8 Milliarden Dollar mit einem Reifenabsatz von 42,5 Millionen Einheiten. Das Unternehmen erzielte ein operatives Segmentergebnis von 347 Millionen Dollar mit einer SOI-Marge von 7,2% und verzeichnete das vierte aufeinanderfolgende Quartal mit Margenausweitung. Die Ziele der Goodyear Forward-Transformation wurden auf 1,5 Milliarden Dollar bis Ende 2025 erhöht, was einer Steigerung von 200 Millionen Dollar gegenüber dem ursprünglichen Ziel entspricht. Das Unternehmen erwartet 450 Millionen Dollar an Bruttovorteilen für 2024 und zusätzliche 750 Millionen Dollar für 2025, während es sein Ziel einer SOI-Marge von 10% beibehält.

Positive
  • Segment operating income increased to $347 million, up $11 million YoY
  • SOI margin improved by 70 basis points YoY to 7.2%
  • Goodyear Forward benefits reached $123 million in Q3
  • Asia Pacific segment operating margin improved to 11.7% from 8.6% YoY
  • Increased transformation targets by $200 million to $1.5 billion
Negative
  • Net loss of $34 million in Q3 2024
  • $125 million intangible asset impairment for Mastercraft and Roadmaster brands
  • Americas tire unit volume decreased 8.3% YoY
  • Total sales declined to $4.8 billion
  • Operating cash flow showed negative $591 million for first nine months

Insights

Goodyear's Q3 2024 results show mixed signals with notable improvements in operational efficiency. The $347 million segment operating income and 7.2% margin expansion demonstrate successful cost management, but the $34 million net loss raises concerns. The increased Goodyear Forward targets, now at $1.5 billion by 2025, signal strong transformation momentum.

Key positives include 8.8% Americas SOI margin and 11.7% Asia Pacific SOI margin. However, volume declines (-8.3% in Americas) and competitive pressures in the low-end market segment are concerning. The $125 million intangible asset impairment of Mastercraft and Roadmaster brands reflects challenging market conditions.

The commitment to achieve 10% SOI margin and 2.0x-2.5x leverage targets by Q4 2025, supported by $2 billion portfolio optimization proceeds, provides a clear pathway to improved financial health.

Market dynamics reveal significant shifts in the tire industry landscape. The decline in U.S. replacement tire volume, coupled with growth in low-cost imported products, indicates intensifying competition in the value segment. This trend forced Goodyear to strategically reduce exposure to lower-margin segments.

The Asia Pacific region shows promising developments in EV fitments, though challenged by volume declines in key markets like Australia, China and India. EMEA's performance reflects a strategic pivot toward higher-margin products, despite volume decreases in smaller rim sizes.

The transformation plan's execution demonstrates management's ability to adapt to market challenges, though sustained volume declines could pressure long-term market position.

Third quarter Goodyear net loss of $34 million (12 cents per share); adjusted net income of $105 million (37 cents per 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 Pacific segment 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 time led by Mark Stewart, Goodyear's chief 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 billion by 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 million and we continue to expect an additional $750 million of 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 2023 to create a more profitable enterprise and drive shareholder value creation. Run rate cost reduction and top line benefits have been increased by $200 million above the original $1.3 billion target. 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's third 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 cents per share) compared to a Goodyear net loss of $89 million (31 cents per 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 million and 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 million compared to adjusted net income of $104 million in the prior year's quarter. Adjusted earnings per share was $0.37, compared to $0.36 in the prior year's quarter. Per share amounts are diluted.

The company reported segment operating income of $347 million in the third quarter of 2024, up $11 million from a year ago. The increase in segment operating income reflects benefits of $123 million from the Goodyear Forward transformation plan and $17 million from 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 million and inflation of $53 million.

Additional earnings materials can be found on Goodyear's investor relations website at http://investor.goodyear.com.

Year-to-Date Results

Goodyear's sales for the first nine months of 2024 were $13.9 billion with tire unit volumes totaling 123.0 million. First nine months 2024 Goodyear net loss was $6 million (2 cents per share) compared to a Goodyear net loss of $398 million ($1.40 per 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 million from asset and other sales. The first nine months of 2023 included, on a pre-tax basis, rationalization charges of $302 million and a $58 million benefit from asset and other sales.

First nine months 2024 adjusted net income was $189 million compared to an adjusted net loss of $75 million in the prior year. Adjusted earnings per share was $0.66, compared to a loss of $0.26 in the prior year.

The company reported segment operating income of $933 million for the first nine months of 2024, up $348 million from a year ago. The increase in segment operating income reflects benefits of $285 million from the Goodyear Forward transformation plan, $235 million from net price/mix versus raw material costs, $69 million from insurance proceeds, net of current year expenses, and $55 million from the 2023 negative impact of the Tupelo storm. These were partially offset by lower tire volume of $143 million and a net headwind of $116 million from inflationary costs.

First nine months 2024 total cash flows from operating activities was a use of $591 million compared with a use of $204 million in 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 billion were 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 million decreased $7 million from 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 billion were 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 million was up $2 million compared 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's third 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, China and India. Original equipment unit volume increased 3.6%, driven by growth in EV fitments.

Third quarter 2024 segment operating income of $72 million was up $16 million from 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 5 at 8:30 a.m. ET. Please visit Goodyear's investor 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

Goodyear is 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 Goodyear and 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
per share amounts)

As
Reported


Intangible Asset
Impairment


Rationalizations, Asset
Write-offs,
  Accelerated Depreciation
and Leases


Goodyear
Forward Costs


Indirect Tax Settlements
and Discrete Tax Items


Debica Fire Impact and
Insurance Recoveries


Americas Storm
Insurance Recoveries


As
Adjusted

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
per share amounts)

As
Reported


Rationalizations, Asset
Write-offs, and
Accelerated Depreciation


Debica Fire
 Impact


Tupelo Storm
Impact


Pension Settlement
Charges


Other Legal
Claims


Asset and
 Other Sales


Indirect Tax Settlements
 and Discrete Tax Items


As
Adjusted

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
per share amounts)

 

As
Reported


Rationalizations, Asset
Write-offs,  Accelerated
Depreciation and Leases


Intangible Asset Impairment


 

Goodyear Forward Costs

 

 

South Africa Flood Impact

 

 

Pension Settlement
Charges (Credits)

 

 

Indirect Tax Settlements
and Discrete Tax Items

 

 

Debica Fire Impact
and Insurance
Recoveries

 

 

Americas Storm
Insurance Recoveries

 

 

Asset and
Other Sales

 

 

As
Adjusted

 

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
per share amounts)

As
Reported


Rationalizations,
Asset Write-offs,
and Accelerated
Depreciation


Tupelo Storm
 Impact


Pension Settlement
Charges


Debica Fire
Impact


Other Legal
Claims


Environmental

 Remediation
Adjustment


Foreign Currency
 Translation
 Adjustment
Write-Off


Indirect Tax

Settlements and

 Discrete Tax Items


Asset and
Other Sales


As
Adjusted

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
DOUG_GRASSIAN@GOODYEAR.COM   

ANALYST CONTACT:   
GREG SHANK
330.796.5008
GREG_SHANK@GOODYEAR.COM 

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SOURCE The Goodyear Tire & Rubber Company

FAQ

What was Goodyear's (GT) Q3 2024 earnings per share?

Goodyear reported a Q3 2024 net loss of $0.12 per share, while adjusted earnings were $0.37 per share.

What is Goodyear's (GT) new Goodyear Forward target for 2025?

Goodyear increased its Goodyear Forward transformation target to $1.5 billion by the end of 2025, up $200 million from the original target.

How did Goodyear's (GT) tire volumes perform in Q3 2024?

Goodyear's total tire unit volumes were 42.5 million in Q3 2024, with Americas segment showing an 8.3% decrease year-over-year.

What was Goodyear's (GT) segment operating income in Q3 2024?

Goodyear reported segment operating income of $347 million in Q3 2024, an increase of $11 million from the previous year.

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