Goodyear Reports Second Quarter 2024 Financial Results
Goodyear Tire & Rubber Company (NASDAQ: GT) reported second quarter 2024 financial results, showing significant improvement from the previous year. Key highlights include:
- Net income of $85 million (30 cents per share), compared to a net loss of $208 million in Q2 2023
- Adjusted net income of $54 million (19 cents per share)
- Segment operating income of $339 million, up $215 million year-over-year
- Sales of $4.6 billion with tire unit volumes of 40.1 million
- Americas segment operating income of $241 million, with an 8.9% margin
- Asia Pacific segment operating income of $63 million, with a 10.6% margin
- Goodyear Forward transformation initiatives delivered $90 million in benefits
The company's CEO, Mark Stewart, expressed confidence in achieving a 10% segment operating income margin by the end of 2025 despite weaker industry trends expected in the second half of 2024.
La Goodyear Tire & Rubber Company (NASDAQ: GT) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando un miglioramento significativo rispetto all'anno precedente. I punti salienti includono:
- Utile netto di 85 milioni di dollari (30 centesimi per azione), rispetto a una perdita netta di 208 milioni di dollari nel Q2 2023
- Utile netto rettificato di 54 milioni di dollari (19 centesimi per azione)
- Utile operativo per segmento di 339 milioni di dollari, in aumento di 215 milioni di dollari rispetto all'anno precedente
- Vendite di 4,6 miliardi di dollari con volumi di unità pneumatici di 40,1 milioni
- Utile operativo del segmento Americhe di 241 milioni di dollari, con un margine dell'8,9%
- Utile operativo del segmento Asia Pacifico di 63 milioni di dollari, con un margine del 10,6%
- Le iniziative di trasformazione Goodyear Forward hanno generato 90 milioni di dollari di benefici
Il CEO dell'azienda, Mark Stewart, ha espresso fiducia nel raggiungere un margine di utile operativo per segmento del 10% entro la fine del 2025, nonostante le tendenze di mercato più deboli previste nella seconda metà del 2024.
La Goodyear Tire & Rubber Company (NASDAQ: GT) reportó los resultados financieros del segundo trimestre de 2024, mostrando una mejora significativa en comparación con el año anterior. Los aspectos destacados incluyen:
- Ingreso neto de 85 millones de dólares (30 centavos por acción), en comparación con una pérdida neta de 208 millones de dólares en el Q2 2023
- Ingreso neto ajustado de 54 millones de dólares (19 centavos por acción)
- Ingreso operativo por segmento de 339 millones de dólares, un aumento de 215 millones de dólares interanual
- Ventas de 4.6 mil millones de dólares con volúmenes de unidades de neumáticos de 40.1 millones
- Ingreso operativo del segmento de las Américas de 241 millones de dólares, con un margen del 8.9%
- Ingreso operativo del segmento Asia-Pacífico de 63 millones de dólares, con un margen del 10.6%
- Las iniciativas de transformación Goodyear Forward generaron 90 millones de dólares en beneficios
El CEO de la empresa, Mark Stewart, expresó confianza en lograr un margen de ingreso operativo por segmento del 10% para fines de 2025, a pesar de las tendencias más débiles de la industria que se esperan en la segunda mitad de 2024.
구디이어 타이어 & 고무 회사(NASDAQ: GT)는 2024년 2분기 재무 결과를 발표하였으며, 작년 대비 상당한 개선을 보여주었습니다. 주요 사항은 다음과 같습니다:
- 순이익 8,500만 달러(주당 30센트), 2023년 2분기 손실 2억 8백만 달러 대비
- 조정된 순이익 5,400만 달러(주당 19센트)
- 세그먼트 운영 수익 3억 3,900만 달러, 전년 대비 2억 1,500만 달러 증가
- 판매액 46억 달러이며 타이어 유닛 판매량은 4,010만 개
- 미주 세그먼트 운영 수익 2억 4,100만 달러, 8.9%의 마진
- 아시아 태평양 세그먼트 운영 수익 6,300만 달러, 10.6%의 마진
- 구디이어 포워드 전환 이니셔티브로 9,000만 달러의 혜택을 제공
회사의 CEO 마크 스튜어트는 2024년 하반기에 예상되는 산업의 약세에도 불구하고 2025년 말까지 10%의 세그먼트 운영 수익 마진을 달성할 것이라고 확신을 표명하였습니다.
La Goodyear Tire & Rubber Company (NASDAQ: GT) a annoncé les résultats financiers du deuxième trimestre 2024, montrant une amélioration significative par rapport à l'année précédente. Les points clés incluent :
- Un revenu net de 85 millions de dollars (30 cents par action), comparé à une perte nette de 208 millions de dollars au Q2 2023
- Un revenu net ajusté de 54 millions de dollars (19 cents par action)
- Un revenu d'exploitation segmentaire de 339 millions de dollars, en hausse de 215 millions de dollars d'une année sur l'autre
- Ventes de 4,6 milliards de dollars avec des volumes de pneus de 40,1 millions
- Un revenu d'exploitation du segment Amériques de 241 millions de dollars, avec une marge de 8,9%
- Un revenu d'exploitation du segment Asie-Pacifique de 63 millions de dollars, avec une marge de 10,6%
- Les initiatives de transformation Goodyear Forward ont généré 90 millions de dollars de bénéfices
Le PDG de l'entreprise, Mark Stewart, a exprimé sa confiance quant à l'atteinte d'une marge de revenu d'exploitation segmentaire de 10% d'ici la fin de 2025, malgré les tendances plus faibles prévues dans le secteur au cours du second semestre de 2024.
Die Goodyear Tire & Rubber Company (NASDAQ: GT) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht, die im Vergleich zum Vorjahr erhebliche Verbesserungen zeigen. Die wichtigsten Punkte sind:
- Nettogewinn von 85 Millionen Dollar (30 Cent pro Aktie), im Vergleich zu einem Nettoverlust von 208 Millionen Dollar im Q2 2023
- Bereinigter Nettogewinn von 54 Millionen Dollar (19 Cent pro Aktie)
- Segmentbetriebsgewinn von 339 Millionen Dollar, ein Anstieg um 215 Millionen Dollar im Jahresvergleich
- Umsätze von 4,6 Milliarden Dollar mit Verkaufszahlen von 40,1 Millionen Reifen
- Betriebsgewinn des Segments Amerika von 241 Millionen Dollar mit einer Marge von 8,9%
- Betriebsgewinn des Segments Asien-Pazifik von 63 Millionen Dollar mit einer Marge von 10,6%
- Die Transformationsinitiativen Goodyear Forward erbrachten einen Nutzen von 90 Millionen Dollar
Der CEO des Unternehmens, Mark Stewart, äußerte Vertrauen, bis Ende 2025 eine Marge von 10% beim Betriebsgewinn im Segment zu erreichen, trotz erwarteter schwächerer Branchentrends in der zweiten Hälfte des Jahres 2024.
- Net income improved to $85 million from a $208 million loss in Q2 2023
- Segment operating income increased by $215 million to $339 million
- Americas segment operating income rose to $241 million with an 8.9% margin
- Asia Pacific segment operating income grew to $63 million with a 10.6% margin
- Goodyear Forward transformation plan delivered $90 million in benefits
- Adjusted earnings per share improved to $0.19 from a loss of $0.34 in the prior year's quarter
- Sales decreased to $4.6 billion, down from Q2 2023
- Tire unit volumes declined to 40.1 million
- Americas' sales decreased by 8.2% due to lower replacement volumes and unfavorable price/mix
- EMEA's sales dropped by 4.6% primarily due to negative currency exchange impacts
- Replacement tire unit volume in Americas decreased by 8.6%
- Total cash flows from operating activities showed a use of $518 million in the first half of 2024
Insights
Goodyear's Q2 2024 results demonstrate a significant turnaround, with net income of
Key financial highlights include:
- Sales of
$4.6 billion with tire unit volumes of 40.1 million - Adjusted earnings per share of
$0.19 , compared to a loss of$0.34 in Q2 2023 - Americas segment operating income of
$241 million with an impressive 8.9% margin - Asia Pacific segment operating income of
$63 million with a strong 10.6% margin
The company's focus on margin expansion through the Goodyear Forward plan is yielding results, with a target of 10% segment operating income margin by the end of 2025. However, investors should note the company's caution regarding weaker underlying trends in the industry for the second half of the year.
While the results are encouraging, it's important to consider that the improvement was partly due to one-time factors such as insurance claim recoveries and the absence of the previous year's Tupelo storm impact. The sustainability of these margins in the face of industry headwinds will be important to watch.
Goodyear's Q2 results reveal interesting market dynamics across its global segments. In the Americas, we see a clear shift in the tire market landscape:
- Replacement tire volume decreased by
8.6% , indicating weakness in the U.S. market and distribution challenges in Latin America - U.S. industry non-members, representing low-cost imported products, showed significant growth
- Original equipment volumes increased by
6.7% , suggesting a potential recovery in the automotive manufacturing sector
In EMEA, the market appears more stable, with only a slight
The Asia Pacific region presents a contrasting picture:
- A substantial
32.2% increase in original equipment volume, driven by EV fitments in China, indicating a strong shift towards electric vehicles in the region - An
8.9% decrease in replacement tire volume, reflecting industry softness in China and the impact of Goodyear's transformation efforts in Australia
These trends suggest a global market in flux, with regional variations in demand patterns and a growing emphasis on EV-related products. Investors should closely monitor how Goodyear adapts its strategy to these evolving market conditions, particularly in high-growth areas like EV tires in Asia.
Goodyear's Q2 results highlight the early success of its Goodyear Forward transformation plan, which is central to the company's strategy for improving profitability. Key aspects of this strategy include:
- Margin expansion: The plan contributed
$90 million to the bottom line this quarter, playing a significant role in the improved segment operating income - Portfolio optimization: The company secured a definitive agreement to sell its Off-the-Road business, aligning with its focus on core operations
- Cost management: Despite inflationary pressures, the company has managed to improve margins, suggesting effective cost control measures
The strategy appears to be yielding results, with segment operating margins improving across all regions, most notably in the Americas (8.9%) and Asia Pacific (10.6%). However, challenges remain:
- Volume pressure: Tire unit volumes are down in key markets, particularly in the replacement segment
- Market dynamics: The growth of low-cost imports in the U.S. market could pressure Goodyear's pricing power
- Regional variations: The company needs to navigate differing market conditions across its global operations
Looking ahead, Goodyear's ability to achieve its targeted 10% segment operating income margin by the end of 2025 will depend on successfully balancing cost optimization with investments in growth areas like EV tires. The company's cautious outlook for the second half of 2024 suggests that executing this strategy in a challenging market environment will be important for long-term success.
Second quarter Goodyear net income of
Segment operating income of
Goodyear Forward transformation initiatives delivered
Additional earnings materials have been posted to Goodyear's investor relations website at http://investor.goodyear.com.
"We demonstrated clear progress on our Goodyear Forward plan in the second quarter, achieving significant margin expansion and securing a definitive agreement to sell our Off-the-Road business," said Chief Executive Officer and President Mark Stewart. "Our associates are dedicated to delivering Goodyear Forward, and their commitment is especially critical as we look to a second half affected by weaker underlying trends in the industry. I continue to be confident in our ability to deliver Goodyear Forward and
Goodyear's second quarter 2024 sales were
Second quarter 2024 adjusted net income was
The company reported segment operating income of
Year-to-Date Results
Goodyear's sales for the first six months of 2024 were
First half 2024 adjusted net income was
The company reported segment operating income of
First half 2024 total cash flows from operating activities was a use of
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
Second Quarter | Six Months | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
Tire Units | 19.6 | 20.8 | 38.6 | 41.3 | |||
Net Sales | |||||||
Segment Operating Income | 241 | 103 | 420 | 182 | |||
Segment Operating Margin | 8.9 % | 3.5 % | 7.9 % | 3.1 % | |||
Second quarter 2024 segment operating income of
EMEA
Second Quarter | Six Months | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
Tire Units | 11.6 | 11.8 | 24.1 | 25.0 | |||
Net Sales | |||||||
Segment Operating Income (Loss) | 35 | (19) | 43 | (11) | |||
Segment Operating Margin | 2.7 % | (1.4 %) | 1.6 % | (0.4 %) | |||
EMEA's second quarter 2024 sales of
Second quarter 2024 segment operating income of
Second Quarter | Six Months | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
Tire Units | 8.9 | 8.2 | 17.8 | 16.3 | |||
Net Sales | |||||||
Segment Operating Income | 63 | 40 | 123 | 78 | |||
Segment Operating Margin | 10.6 % | 6.8 % | 10.3 % | 6.7 % | |||
Second quarter 2024 segment operating income of
Conference Call
The Company will host an investor call on Thursday, August 1 at 8:00 a.m. EDT. 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) 245-3047 or (203) 518-9765 before 7:55 a.m. and providing the conference ID "Goodyear." A replay will be available by calling (800) 839-4088 or (402) 220-2986. 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
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
Total Segment Operating Income is the sum of the individual strategic business units' (SBUs') Segment Operating Income as determined in accordance with
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with
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
MEDIA CONTACT:
DOUG GRASSIAN
330.796.3855
DOUG_GRASSIAN@GOODYEAR.COM
ANALYST CONTACT:
GREG SHANK
330.796.5008
GREG_SHANK@GOODYEAR.COM
The Goodyear Tire & Rubber Company and Subsidiaries
Financial Tables (Unaudited)
Table 1: Consolidated Statement of Operations | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(In millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||
Net Sales | $ 4,570 | $ 4,867 | $ 9,107 | $ 9,808 | ||||
Cost of Goods Sold | 3,622 | 4,123 | 7,337 | 8,316 | ||||
Selling, Administrative and General Expense | 731 | 708 | 1,427 | 1,372 | ||||
Rationalizations | 19 | 72 | 41 | 104 | ||||
Interest Expense | 130 | 138 | 256 | 265 | ||||
Other (Income) Expense | (72) | 36 | (42) | 61 | ||||
Income (Loss) before Income Taxes | 140 | (210) | 88 | (310) | ||||
60 | (2) | 66 | (3) | |||||
Net Income (Loss) | 80 | (208) | 22 | (307) | ||||
Less: Minority Shareholders' Net Income (Loss) | (5) | — | (6) | 2 | ||||
Goodyear Net Income (Loss) | $ 85 | $ (208) | $ 28 | $ (309) | ||||
Goodyear Net Income (Loss) — Per Share of Common Stock | ||||||||
Basic | $ 0.30 | $ (0.73) | $ 0.10 | $ (1.08) | ||||
Weighted Average Shares Outstanding | 287 | 285 | 286 | 285 | ||||
Diluted | $ 0.30 | $ (0.73) | $ 0.10 | $ (1.08) | ||||
Weighted Average Shares Outstanding | 288 | 285 | 288 | 285 | ||||
Table 2: Consolidated Balance Sheets | |||
June 30, | December 31, | ||
(In millions, except share data) | 2024 | 2023 | |
Assets: | |||
Current Assets: | |||
Cash and Cash Equivalents | $ 789 | $ 902 | |
Accounts Receivable, less Allowance — | 3,043 | 2,731 | |
Inventories: | |||
Raw Materials | 850 | 785 | |
Work in Process | 213 | 206 | |
Finished Products | 2,985 | 2,707 | |
4,048 | 3,698 | ||
Prepaid Expenses and Other Current Assets | 324 | 319 | |
Total Current Assets | 8,204 | 7,650 | |
Goodwill | 779 | 781 | |
Intangible Assets | 947 | 969 | |
Deferred Income Taxes | 1,634 | 1,630 | |
Other Assets | 1,108 | 1,075 | |
Operating Lease Right-of-Use Assets | 978 | 985 | |
Property, Plant and Equipment, less Accumulated Depreciation — | 8,375 | 8,492 | |
Total Assets | $ 22,025 | $ 21,582 | |
Liabilities: | |||
Current Liabilities: | |||
Accounts Payable — Trade | $ 4,181 | $ 4,326 | |
Compensation and Benefits | 656 | 663 | |
Other Current Liabilities | 1,029 | 1,165 | |
Notes Payable and Overdrafts | 462 | 344 | |
Operating Lease Liabilities due Within One Year | 199 | 200 | |
Long Term Debt and Finance Leases due Within One Year | 1,182 | 449 | |
Total Current Liabilities | 7,709 | 7,147 | |
Operating Lease Liabilities | 827 | 825 | |
Long Term Debt and Finance Leases | 6,832 | 6,831 | |
Compensation and Benefits | 889 | 974 | |
Deferred Income Taxes | 101 | 83 | |
Other Long Term Liabilities | 812 | 885 | |
Total Liabilities | 17,170 | 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 | 3,146 | 3,133 | |
Retained Earnings | 5,114 | 5,086 | |
Accumulated Other Comprehensive Loss | (3,842) | (3,835) | |
Goodyear Shareholders' Equity | 4,703 | 4,668 | |
Minority Shareholders' Equity — Nonredeemable | 152 | 169 | |
Total Shareholders' Equity | 4,855 | 4,837 | |
Total Liabilities and Shareholders' Equity | $ 22,025 | $ 21,582 | |
Table 3: Consolidated Statements of Cash Flows | |||
Six Months Ended | |||
June 30, | |||
(In millions) | 2024 | 2023 | |
Cash Flows from Operating Activities: | |||
Net Income (Loss) | $ 22 | $ (307) | |
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities: | |||
Depreciation and Amortization | 546 | 506 | |
Amortization and Write-Off of Debt Issuance Costs | 7 | 7 | |
Provision for Deferred Income Taxes | (6) | (108) | |
Net Pension Curtailments and Settlements | (5) | 36 | |
Net Rationalization Charges | 41 | 104 | |
Rationalization Payments | (105) | (50) | |
Net (Gains) Losses on Asset Sales | (94) | (62) | |
Gain on Insurance Recoveries for Damaged Property, Plant and Equipment | (50) | — | |
Operating Lease Expense | 164 | 148 | |
Operating Lease Payments | (139) | (139) | |
Pension Contributions and Direct Payments | (29) | (38) | |
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and Dispositions: | |||
Accounts Receivable | (354) | (375) | |
Inventories | (409) | 229 | |
Accounts Payable — Trade | (25) | (404) | |
Compensation and Benefits | 6 | — | |
Other Current Liabilities | (91) | 104 | |
Other Assets and Liabilities | 3 | (85) | |
Total Cash Flows from Operating Activities | (518) | (434) | |
Cash Flows from Investing Activities: | |||
Capital Expenditures | (634) | (536) | |
Insurance Recoveries for Damaged Property, Plant and Equipment | 37 | — | |
Cash Proceeds from Sale and Leaseback Transaction | 16 | 66 | |
Asset Dispositions | 108 | 3 | |
Short Term Securities Acquired | — | (102) | |
Short Term Securities Redeemed | — | 2 | |
Long Term Securities Redeemed | 1 | — | |
Notes Receivable | (17) | (65) | |
Other Transactions | 1 | (13) | |
Total Cash Flows from Investing Activities | (488) | (645) | |
Cash Flows from Financing Activities: | |||
Short Term Debt and Overdrafts Incurred | 595 | 583 | |
Short Term Debt and Overdrafts Paid | (464) | (439) | |
Long Term Debt Incurred | 7,068 | 4,758 | |
Long Term Debt Paid | (6,280) | (4,020) | |
Common Stock Issued | (3) | (2) | |
Transactions with Minority Interests in Subsidiaries | (2) | (2) | |
Debt Related Costs and Other Transactions | (18) | (2) | |
Total Cash Flows from Financing Activities | 896 | 876 | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (23) | 4 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | (133) | (199) | |
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 | $ 852 | $ 1,112 | |
Table 4: Reconciliation of Segment Operating Income & Margin | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
(In millions) | 2024 | 2023 | 2024 | 2023 | |||
Total Segment Operating Income | $ 339 | $ 124 | $ 586 | $ 249 | |||
Less: | |||||||
Rationalizations | 19 | 72 | 41 | 104 | |||
Interest Expense | 130 | 138 | 256 | 265 | |||
Other (Income) Expense | (72) | 36 | (42) | 61 | |||
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, Net | 43 | 11 | 94 | 13 | |||
Corporate Incentive Compensation Plans | 15 | 21 | 36 | 41 | |||
Retained Expenses of Divested Operations | 3 | 4 | 8 | 8 | |||
Other | 61 | 52 | 105 | 67 | |||
Income (Loss) before Income Taxes | $ 140 | $ (210) | $ 88 | $ (310) | |||
60 | (2) | 66 | (3) | ||||
Less: Minority Shareholders' Net Income (Loss) | (5) | — | (6) | 2 | |||
Goodyear Net Income (Loss) | $ 85 | $ (208) | $ 28 | $ (309) | |||
Net Sales | $ 4,570 | $ 4,867 | $ 9,107 | $ 9,808 | |||
Return on Net Sales | 1.9 % | -4.3 % | 0.3 % | -3.2 % | |||
Total Segment Operating Margin | 7.4 % | 2.5 % | 6.4 % | 2.5 % | |||
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share | |||||||||||||||
Second Quarter 2024 | |||||||||||||||
(In millions, except | As | Rationalizations, | Goodyear |
|
| Debica Fire | Asset and | As | |||||||
Net Sales | $ 4,570 | $ - | $ - | $ - | $ - | $ - | $ - | $ 4,570 | |||||||
Cost of Goods Sold | 3,622 | (33) | - | (3) | 20 | 43 | - | 3,649 | |||||||
Gross Margin | 948 | 33 | - | 3 | (20) | (43) | - | 921 | |||||||
SAG | 731 | (10) | (40) | - | - | - | - | 681 | |||||||
Rationalizations | 19 | (19) | - | - | - | - | - | - | |||||||
Interest Expense | 130 | - | - | - | - | - | - | 130 | |||||||
Other (Income) Expense | (72) | - | - | - | - | - | 96 | 24 | |||||||
Pre-tax Income (Loss) | 140 | 62 | 40 | 3 | (20) | (43) | (96) | 86 | |||||||
Taxes | 60 | 5 | 10 | - | (5) | (9) | (28) | 33 | |||||||
Minority Interest | (5) | 8 | - | - | - | (4) | - | (1) | |||||||
Goodyear Net Income (Loss) | $ 85 | $ 49 | $ 30 | $ 3 | $ (15) | $ (30) | $ (68) | $ 54 | |||||||
EPS | $ 0.30 | $ 0.17 | $ 0.10 | $ 0.01 | $ (0.06) | $ (0.10) | $ (0.23) | $ 0.19 | |||||||
Second Quarter 2023 | |||||||||||||||||
(In millions, except | As | Rationalizations, | Tupelo Storm | Asset and | Pension | Environmental | Other Legal | Indirect Tax | As | ||||||||
Net Sales | $ 4,867 | $ - | $ 77 | $ - | $ - | $ - | $ - | $ - | $ 4,944 | ||||||||
Cost of Goods Sold | 4,123 | (12) | 13 | - | - | 5 | - | - | 4,129 | ||||||||
Gross Margin | 744 | 12 | 64 | - | - | (5) | - | - | 815 | ||||||||
SAG | 708 | - | - | - | - | - | - | - | 708 | ||||||||
Rationalizations | 72 | (72) | - | - | - | - | - | - | - | ||||||||
Interest Expense | 138 | - | - | - | - | - | - | - | 138 | ||||||||
Other (Income) Expense | 36 | - | - | 51 | (36) | - | (4) | - | 47 | ||||||||
Pre-tax Income (Loss) | (210) | 84 | 64 | (51) | 36 | (5) | 4 | - | (78) | ||||||||
Taxes | (2) | 16 | 12 | (14) | 8 | (1) | 2 | (2) | 19 | ||||||||
Minority Interest | - | - | - | - | - | - | - | - | - | ||||||||
Goodyear Net Income (Loss) | $ (208) | $ 68 | $ 52 | $ (37) | $ 28 | $ (4) | $ 2 | $ 2 | $ (97) | ||||||||
EPS | $ (0.73) | $ 0.24 | $ 0.18 | $ (0.13) | $ 0.10 | $ (0.02) | $ 0.01 | $ 0.01 | $ (0.34) | ||||||||
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (continued) | |||||||||||||||||||
First Six Months 2024 | |||||||||||||||||||
(In millions, except | As | Rationalizations, | Goodyear |
| Pension | Indirect Tax |
| Debica Fire | Asset and | As | |||||||||
Net Sales | $ 9,107 | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 9,107 | |||||||||
Cost of Goods Sold | 7,337 | (76) | - | (3) | - | 8 | 20 | 29 | - | 7,315 | |||||||||
Gross Margin | 1,770 | 76 | - | 3 | - | (8) | (20) | (29) | - | 1,792 | |||||||||
SAG | 1,427 | (18) | (67) | - | - | - | - | - | - | 1,342 | |||||||||
Rationalizations | 41 | (41) | - | - | - | - | - | - | - | - | |||||||||
Interest Expense | 256 | - | - | - | - | - | - | - | - | 256 | |||||||||
Other (Income) Expense | (42) | - | - | - | 5 | 2 | - | - | 86 | 51 | |||||||||
Pre-tax Income (Loss) | 88 | 135 | 67 | 3 | (5) | (10) | (20) | (29) | (86) | 143 | |||||||||
Taxes | 66 | 14 | 16 | - | (1) | (2) | (5) | (7) | (26) | 55 | |||||||||
Minority Interest | (6) | 14 | - | - | - | - | - | (3) | - | 5 | |||||||||
Goodyear Net Income (Loss) | $ 28 | $ 107 | $ 51 | $ 3 | $ (4) | $ (8) | $ (15) | $ (19) | $ (60) | $ 83 | |||||||||
EPS | $ 0.10 | $ 0.37 | $ 0.18 | $ 0.01 | $ (0.01) | $ (0.03) | $ (0.06) | $ (0.06) | $ (0.21) | $ 0.29 | |||||||||
First Six Months 2023 | |||||||||||||||||
(In millions, except | As | Rationalizations, | Tupelo Storm | Asset and | Pension | Foreign | Environmental | Indirect Tax | As | ||||||||
Net Sales | $ 9,808 | $ - | $ 77 | $ - | $ - | $ - | $ - | $ - | $ 9,885 | ||||||||
Cost of Goods Sold | 8,316 | (23) | 13 | - | - | - | 5 | - | 8,311 | ||||||||
Gross Margin | 1,492 | 23 | 64 | - | - | - | (5) | - | 1,574 | ||||||||
SAG | 1,372 | 10 | - | - | - | - | - | - | 1,382 | ||||||||
Rationalizations | 104 | (104) | - | - | - | - | - | - | - | ||||||||
Interest Expense | 265 | - | - | - | - | - | - | - | 265 | ||||||||
Other (Income) Expense | 61 | - | - | 52 | (36) | 5 | - | - | 82 | ||||||||
Pre-tax Income (Loss) | (310) | 117 | 64 | (52) | 36 | (5) | (5) | - | (155) | ||||||||
Taxes | (3) | 23 | 12 | (15) | 8 | - | (1) | (3) | 21 | ||||||||
Minority Interest | 2 | - | - | - | - | - | - | 1 | 3 | ||||||||
Goodyear Net Income (Loss) | $ (309) | $ 94 | $ 52 | $ (37) | $ 28 | $ (5) | $ (4) | $ 2 | $ (179) | ||||||||
EPS | $ (1.08) | $ 0.33 | $ 0.18 | $ (0.13) | $ 0.10 | $ (0.02) | $ (0.02) | $ 0.01 | $ (0.63) | ||||||||
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SOURCE The Goodyear Tire & Rubber Company
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