Goodyear reports positive second quarter

Akron, OH – The Goodyear Tire & Rubber Company reported second quarter 2024 results. The management team will share insights on second quarter performance and progress on the Goodyear Forward transformation plan. 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 10% segment operating income margin by the end of next year.”

Goodyear’s second quarter 2024 sales were $4.6 billion with tire unit volumes totaling 40.1 million. Second quarter 2024 Goodyear net income was $85 million (30 cents per share) compared to a Goodyear net loss of $208 million (73 cents per share loss) a year ago. The year over year improvement was driven by increases in segment operating income. The second quarter of 2024 included several significant items including, on a pre-tax basis, a benefit of $96 million from asset and other sales, Goodyear Forward costs of $40 million and rationalization charges of $19 million. The second quarter of 2023 included pre-tax rationalization charges of $72 million and a $51 million benefit from asset and other sales. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.

Second quarter 2024 adjusted net income was $54 million compared to an adjusted net loss of $97 million in the prior year’s quarter. Adjusted earnings per share was $0.19, compared to a loss of $0.34 in the prior year’s quarter. Per share amounts are diluted.

The company reported segment operating income of $339 million in the second quarter of 2024, up $215 million from a year ago. The increase in segment operating income reflects benefits of $99 million from price/mix versus raw materials, $90 million from the Goodyear Forward transformation plan, $63 million from insurance claim recoveries, net of related expenses, and $50 million from the 2023 negative impact of the Tupelo storm. These were partly offset by the impact of lower tire volume of $41 million and unfavorable fixed overhead absorption of $35 million.