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Dec 31, 2023
Goodyear Q4 2023 Earnings Report
Goodyear's Q4 2023 earnings were impacted by lower replacement volume and third-party chemical sales, but adjusted EPS exceeded expectations due to strong operating results in Americas and Asia Pacific.
Key Takeaways
Goodyear's Q4 2023 net sales decreased by 4.8% year-over-year, driven by lower replacement volume and lower third-party chemical sales. The company reported a net loss of $291 million, compared to a net loss of $104 million in the prior year. However, adjusted earnings per share were $0.47, compared to $0.07 a year ago, driven by strong operating results in Americas and Asia Pacific.
Fourth quarter sales decreased 4.8% compared to prior year, driven by lower replacement volume and lower third-party chemical sales.
Net loss was $291 million ($1.02 per share loss) compared to a net loss of $104 million ($0.37 per share) a year ago.
Adjusted earnings per share on a diluted basis were $0.47 compared to $0.07 a year ago.
Segment operating income was $383 million, up $147 million compared to prior year.
Goodyear
Goodyear
Goodyear Revenue by Segment
Goodyear Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
First quarter 2024 global unit volumes are expected to be down approximately 2%, driven by replacement. Raw material costs are expected to be lower than prior year by approximately $245 million. The net benefit of price/mix versus raw materials is expected to be approximately $115 million.
Positive Outlook
- Raw material costs are expected to be lower than prior year by approximately $245 million.
- The net benefit of price/mix versus raw materials is expected to be approximately $115 million.
- Savings to total approximately $50 million during the first quarter, driven by purchasing.
- Expect low-single digit industry growth in consumer replacement in EMEA.
- Expect consumer replacement industry to be up low-single digits compared to prior year in Americas.
Challenges Ahead
- Global unit volumes are expected to be down approximately 2%, driven by replacement.
- Price/mix is expected to include the negative price impact from indexed agreements and currency-related adjustments (i.e., Brazil).
- Price/mix also reflects negative mix driven by commercial truck tire industry weakness.
- The impact of inflation & other costs is expected to be approximately ($25) million compared to the first quarter of 2023.
- The fire at our operations in Debica, Poland is expected to negatively impact first quarter segment operating income by approximately $15 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income