Goodyear bounces back with increased trading in 2024

Goodyear has revealed a net income of US$76 million during the final quarter months of 2024 which has significantly reversing their US$292 million loss during the same trading period in 2023. The total revenue was US$4.9 billion with global tire unit sales of43.6 million. At the same time segment operating income was US$385.

As I reflect on my first year at Goodyear, I’m pleased with the progress we have made having exceeded our full-year 2024 Goodyear Forward expectations and raised our targets for 2025, grew earnings and segment operating margins across all business units. Whilst successfully reaching agreements to divest non-core assets. Moving forward, we remain totally committed to achieving our expanded Goodyear Forward targets, including further margin expansion and meaningful debt reduction.

Mark Stewart, Goodyear’s chief executive officer and president

From a global perspective, Goodyear’s Americas business segment recorded a decline in sales, with Q4 revenue of $2.9 billion, down 5.8% year-over-year. Tire unit volumes also dropped by 4.8%, with replacement tires particularly affected by increased competition from non-USTMA imports. However, original equipment sales rose by 8.5%, benefiting from new fitment sales but segment operating income declined to US$262 million due to lower volumes, unfavourable pricing, and raw material costs.

However, EMEA delivered a strong Q4 performance with a 3.7% increase in sales to $1.5 billion. Tire volumes grew by 1.5%, with replacement tire sales up by 2.7%, fuelled by strong winter tire demand. Segment operating income rose significantly to $41 million, reflecting benefits from the Goodyear Forward initiative and recovery from previous disruptions, including the fire at the Debica facility in Poland.

Goodyear has revealed a net income of US$76 million during the final quarter months of 2024

Meanwhile in Asia Pacific despite a 6.8% decline in sales to $606 million in the last quarter last year, the Asia Pacific region recorded a higher operating income at $82 million, up $14 million year-over-year. The decline in sales was primarily due to a 9.3% reduction in replacement tire volumes, as the company continued to optimise its portfolio by moving away from lower-margin business. However, original equipment volumes remained steady.

The company has also increased its portfolio optimisation, including the completed sale of its off-the-road tire business to The Yokohama Rubber Company. The planned sale of the Dunlop brand to Sumitomo Rubber Industries is expected to be completed by mid-2025.

Finally, Goodyear has reaffirmed its commitment to further cost savings by increased margin expansion, and significant debt reduction, targeting US$1.5 billon, in annual run-rate benefits and a segment operating margin of 10% by the end of 2025.

Goodyear's management team remain optimistic about the company's financial health and strategic direction and expect to continue deleveraging during the course of this year whilst reducing net leverage to a ratio of 2.0x to 2.5x. With ongoing transformation efforts and a focus on operational excellence, Goodyear is well-positioned to drive further profitability and shareholder value in the coming year.