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GOODYEAR TIRE & RUBBER CO /OH/ false 0000042582 0000042582 2024-07-31 2024-07-31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 8-K

 

 

Current Report

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): (July 31, 2024)

Month 1, 2023

 

 

THE GOODYEAR TIRE & RUBBER COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

Ohio   1-1927   34-0253240

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

200 Innovation Way, Akron, Ohio   44316-0001
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (330) 796-2121

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange

on which registered

Common Stock, Without Par Value   GT   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

A copy of the News Release issued by The Goodyear Tire & Rubber Company on Wednesday, July 31, 2024, describing its results of operations for the second quarter of 2024, is attached hereto as Exhibit 99.1.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits

 

99.1    News Release, dated July 31, 2024
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    THE GOODYEAR TIRE & RUBBER COMPANY
Date: July 31, 2024     By  

/s/ Christina L. Zamarro

      Christina L. Zamarro
      Executive Vice President and
Chief Financial Officer
EX-99.1 2 d874126dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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NEWS RELEASE

 

Second quarter Goodyear net income of $85 million (30 cents per share); adjusted net income of $54 million (19 cents per share)

 

Segment operating income of $339 million, up $215 million compared to the second quarter of 2023

 

Americas segment operating income of $241 million, SOI margin of 8.9%

  

 

Asia Pacific segment operating income of $63 million, SOI margin of 10.6%

 

FOR IMMEDIATE RELEASE    Goodyear Forward transformation initiatives delivered $90 million

>   GLOBAL HEADQUARTERS:

200 INNOVATION WAY,

AKRON, OHIO 44316-0001

 

 

>   MEDIA WEBSITE:

WWW.GOODYEARNEWSROOM.COM

   AKRON, Ohio, July 31, 2024 – The Goodyear Tire & Rubber Company reported second quarter 2024 results today and the company will host an investor call tomorrow morning at 8:00 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 second quarter performance and progress on the Goodyear Forward transformation plan.

>   MEDIA CONTACT:

DOUG GRASSIAN

330.796.3855

DOUG_GRASSIAN@GOODYEAR.COM

 

>   ANALYST CONTACT:

GREG SHANK

330.796.5008

GREG_SHANK@GOODYEAR.COM

  

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.

 

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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.

Year-to-Date Results

Goodyear’s sales for the first six months of 2024 were $9.1 billion with tire unit volumes totaling 80.5 million. First half 2024 Goodyear net income was $28 million (10 cents per share) compared to a Goodyear net loss of $309 million ($1.08 per share loss) a year ago. The year over year improvement was driven by increases in segment operating income. The first half of 2024 also included several significant items including, on a pre-tax basis, Goodyear Forward costs of $67 million, rationalization charges of $41 million, and a benefit of $86 million from asset and other sales. The first half of 2023 included pre-tax rationalization charges of $104 million and a $52 million benefit from asset and other sales.

First half 2024 adjusted net income was $83 million compared to an adjusted net loss of $179 million in the prior year. Adjusted earnings per share was $0.29, compared to a loss of $0.63 in the prior year.

The company reported segment operating income of $586 million for the first six months of 2024, up $337 million from a year ago. The increase in segment operating income reflects benefits of $227 million from price/mix versus raw materials, $162 million from the Goodyear Forward transformation plan, $52 million from insurance claim recoveries, net of related expenses, and $50 million from the 2023 negative impact of the Tupelo storm. These were partially offset by lower tire volume of $69 million, a net headwind of $58 million from higher inflationary costs, and unfavorable fixed overhead absorption of $33 million.

First half 2024 total cash flows from operating activities was a use of $518 million compared with a use of $434 million in the first half 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.

 

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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

   $ 2,697     $ 2,939     $ 5,285     $ 5,806  

Segment Operating Income

     241       103       420       182  

Segment Operating Margin

     8.9     3.5     7.9     3.1

Americas’ second quarter 2024 sales of $2.7 billion were down 8.2% driven by lower replacement volumes and unfavorable price/mix due to continuing weakness in commercial truck and contractual price adjustments. Tire unit volume decreased 5.9%. Replacement tire unit volume decreased 8.6% given industry member declines in the U.S., a transitory impact from distribution changes in Latin America, and flooding in Brazil earlier in the quarter. The U.S. industry non-members, generally representing low-cost imported product, grew significantly in the quarter. Original equipment unit volumes were up 6.7% compared to the second quarter of 2023.

Second quarter 2024 segment operating income of $241 million increased $138 million from the prior year’s quarter. The increase was driven by benefits from the execution of Goodyear Forward initiatives, favorable net price/mix versus raw material costs, the 2023 negative impact of the Tupelo storm, and lower transportation costs. These benefits were partly offset by lower volume. Segment operating income also included $20 million of insurance claim recoveries, primarily related to the 2023 Tupelo storm.

EMEA

 

     Second Quarter     Six Months  
(In millions)    2024     2023     2024     2023  

Tire Units

     11.6       11.8       24.1       25.0  

Net Sales

   $ 1,279     $ 1,341     $ 2,626     $ 2,833  

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 $1.3 billion were down 4.6% primarily driven by the negative impact of changes in foreign currency exchange rates. Tire unit volume decreased 0.9%. Replacement tire unit volume decreased 1.4% due to lower volume in Eastern Europe, particularly in Turkey. Original equipment unit volumes were flat.

Second quarter 2024 segment operating income of $35 million was up $54 million compared to the prior year’s quarter. Segment operating income benefitted from favorable net price/mix versus raw material costs, a net gain on insurance recoveries and the Goodyear Forward plan. These benefits were offset by unfavorable fixed overhead absorption and higher net inflationary costs. Segment operating income also included $43 million of insurance claim recoveries, net of related expenses, resulting from a fire that impacted its Debica, Poland factory.

 

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ASIA PACIFIC

 

     Second Quarter     Six Months  
(In millions)    2024     2023     2024     2023  

Tire Units

     8.9       8.2       17.8       16.3  

Net Sales

   $ 594     $ 587     $ 1,196     $ 1,169  

Segment Operating Income

     63       40       123       78  

Segment Operating Margin

     10.6     6.8     10.3     6.7

Asia Pacific’s second quarter 2024 sales increased 1.2% to $594 million, driven by higher original equipment volume. Tire unit volume increased 7.8%. Original equipment unit volume increased 32.2%, driven by EV fitments in China. Replacement tire unit volume decreased 8.9%, reflecting the impact of the Australia transformation and industry softness in China.

Second quarter 2024 segment operating income of $63 million was up $23 million from prior year driven by higher volume, favorable net price/mix versus raw material costs, and benefits from the Goodyear Forward plan. These factors were partly offset by higher inflationary costs.

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 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.

 

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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).

 

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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, 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.

 

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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

United States and Foreign Tax Expense (Benefit)

     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  

 

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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 — $87 ($102 in 2023)

     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 — $12,671 ($12,472 in 2023)

     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  
  

 

 

   

 

 

 

 

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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  
  

 

 

   

 

 

 

 

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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

United States and Foreign Tax Expense (Benefit)

     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

 

(more)

 

10

 

 

 

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Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share

Second Quarter 2024

 

(In millions, except

per share amounts)

   As
Reported
    Rationalizations,
Asset Write-offs,
Accelerated
Depreciation and
Leases
    Goodyear
Forward
Costs
    South Africa
Flood Impact
    Americas
Storm
Insurance
Recoveries
    Debica Fire
Impact and
Insurance
Recoveries
    Asset and
Other Sales
    As
Adjusted
 

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

per share amounts)

  As
Reported
    Rationalizations,
Asset Write-offs,
and Accelerated
Depreciation
    Tupelo Storm
Impact
    Asset and
Other Sales
    Pension
Settlement
Charges
    Environmental
Remediation
Adjustment
    Other Legal
Claims
    Indirect Tax
Settlements
and Discrete
Tax Items
    As
Adjusted
 

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
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(more)

 

11

 

 

 

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Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (continued)

First Six Months 2024

 

(In millions, except

per share amounts)

  As
Reported
    Rationalizations,
Asset Write-offs,
Accelerated
Depreciation and
Leases
    Goodyear
Forward
Costs
    South Africa
Flood Impact
    Pension
Settlement
Charges
(Credits)
    Indirect Tax
Settlements
and Discrete
Tax Items
    Americas
Storm
Insurance
Recoveries
    Debica Fire
Impact and
Insurance
Recoveries
    Asset and
Other Sales
    As
Adjusted
 

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

per share amounts)

  As
Reported
    Rationalizations,
Asset Write-offs,
and Accelerated
Depreciation
    Tupelo Storm
Impact
    Asset and
Other Sales
    Pension
Settlement
Charges
    Foreign
Currency
Translation
Adjustment
Write-Off
    Environmental
Remediation
Adjustment
    Indirect Tax
Settlements
and Discrete
Tax Items
    As
Adjusted
 

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
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

12

 

 

 

  LOGO