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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.
Revenue by Segment
Revenue by Geographic Location
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).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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