Goodyear reports slight increase in sales for first quarter

Akron, OH – Goodyear reported that their first quarter results were impacted by overall weaker industry volume and ongoing pressure from cost inflation, partly offset by continued strong price/mix. Global replacement industry volume was down 5.2% in the quarter, reflecting a strong comparable period and channel destocking. Goodyear replacement volume, by comparison, declined 11.2% — worse than the industry, reflecting growth in imports, particularly in Europe and Latin America. Global OE industry volume grew 3.3%, reflecting recovery in OE production. Goodyear OE volume increased 8.2% — better than the industry — reflecting share gains from recent EV fitment wins.

First quarter sales increased 0.7% compared to prior year, driven by strong price/mix, partly offset by the effect of lower volume and the impact of foreign exchange. Revenue per tire increased 12% excluding the impact of foreign exchange. Tire unit volume in the quarter totaled 41.8 million units, down 7.1% from prior-year levels. The stronger U.S. dollar reduced sales by approximately 3%. First quarter 2023 net loss was $101 million ($0.35 per share loss) compared to net income of $96 million ($0.33 per share) a year ago. The decrease in net income was primarily due to cost of goods sold increases, driven by inflation and higher raw material costs, in excess of increases in net sales.

After adjusting for significant items, our first quarter net loss was $82 million, compared to $105 million of net income in the prior year’s quarter. Lower adjusted net income primarily reflects reduced segment operating income ($125 million compared with $303 million a year ago). Adjusted earnings per share on a diluted basis were a $0.29 loss compared to $0.37 of income a year ago.