Goodyear reports week demand for first quarter

Akron, OH — The Goodyear Tire & Rubber Co. reported a first-quarter loss Tuesday as weaker tire demand, competitive pressures and restructuring costs weighed on results despite gains from pricing and its ongoing turnaround plan.

Goodyear posted a net loss of $249 million, or 86 cents per diluted share, for the quarter ended March 31, compared with net income of $115 million, or 40 cents per diluted share, in the same period a year earlier.

Adjusted net loss totaled $112 million, or 39 cents per diluted share, compared with an adjusted net loss of $11 million, or 4 cents per diluted share, a year earlier.

Net sales fell to $3.9 billion from $4.3 billion in the prior-year quarter, while tire unit volumes declined to 34 million from 38.5 million.

The company said first-quarter results included several significant items, including $104 million in pretax rationalization charges tied to restructuring efforts.

CEO Mark Stewart said the company continued to benefit from its Goodyear Forward transformation plan, which is aimed at improving profitability and simplifying operations.

In the Americas segment, sales declined 17.5% to $2.1 billion, driven by lower consumer replacement demand and the sale of the company’s chemical business. Tire unit volume fell 17%, while replacement tire volume dropped 23.2% amid weak industry conditions in North America and increased promotional competition.

Goodyear’s Europe, Middle East and Africa segment reported a 6.7% increase in sales to $1.4 billion, helped by favorable pricing and currency impacts. Original equipment tire volumes rose 8.1%, reflecting what the company described as strong consumer market share gains, though replacement volumes fell 15.2%.

The company’s Asia Pacific segment posted a 4% decline in sales to $455 million as lower volume offset pricing improvements. Segment operating income rose to $57 million from $45 million a year earlier.

Goodyear said benefits from pricing relative to raw material costs and savings generated by Goodyear Forward partially offset inflationary pressures and lower sales volumes across its businesses.

The company also said it plans additional workforce reductions in Europe, the Middle East and Africa as part of its ongoing restructuring initiatives.