Goodyear Reports First Quarter 2023 Financial Results

Goodyear Reports First Quarter 2023 Financial Results

Goodyear expects resumption of growth in Q4 amid weak Q1 results.

The Goodyear Tire & Rubber Company reported results for the first quarter of 2023 in an investor letter published on its investor relations website.

The company said its first-quarter results were significantly impacted by weak industry volumes and inflation and it expects to work through continuing cost inflation and contractionary demand in many of its markets in the first half of 2023. Even so, the company is anticipating relative stability in industry demand during the third quarter and the resumption of year-over-year growth in the fourth quarter, given significant declines in the comparable period. At the same time, it said it should benefit from decreases in raw material costs and moderation in inflation.

Even in this relatively low-demand environment and with the full benefits of the Cooper Tire synergies, Goodyear said it expects to achieve a second-half segment operating margin that should bring it closer to its near-term target of 8%.

Goodyear said its value proposition remains strong in the US consumer replacement industry and supply continues to be tight for premium, high-value-added products – especially for light truck and SUV tires. This is especially true given the acceleration of consumer OE production, where Goodyear said it is winning a high share of new fitments. At the same time, the company said demand for travel is robust, with US miles driven up 4% year-to-date and slightly ahead of 2019 levels. With the completion of the Cooper Tire integration and the outlook for favorable raw material costs, Goodyear anticipates strong earnings growth and significant margin expansion in the second half of this year.

“Our people and our culture are the fabric of our company, and I’m tremendously proud of how our team has acted with agility to serve our customers and to address unparalleled demand volatility and inflation over the last three years,” Richard Kramer, chairman, chief executive officer and president, Goodyear, said. “As I think about the path ahead, and despite the macroeconomic uncertainty that surrounds us today, I am confident in Goodyear’s future. Building on our strong history of leadership, we will continue to drive innovation in our industry and lay the foundation for the next 125 years.”

You May Also Like

Apollo Tyres Onkar Kanwar receives lifetime achievement award

All India Management Association’s Managing India Awards aim to recognize those who have made a difference, creating an edge above peers.

AIMA-Awards-Apollo-Tyres

Onkar Kanwar, chairman, Apollo Tyres has been given the Lifetime Achievement Award at the All India Management Association (AIMA)’s Managing India Awards ceremony. Shri Jagdeep Dhankhar, VP of India, presented the award to Kanwar in the presence of other dignitaries from various sectors.

Kanwar was recognized for his value-driven business strategy and his able leadership, Apollo said. Apollo Tyres, under his guidance, transformed itself from an Indian manufacturer of commercial vehicle tires to a global entity with a full-fledged product portfolio, spanning three continents. According to Apollo, Kanwar is highly regarded for his constant emphasis on bettering the lives of people—be it employees, customers, business partners, shareholders or any other stakeholder—and responsiveness to change and continuous learning.

Sun Auto Tire & Service acquires 33 Caliber Auto Care locations in Texas

The 33 Caliber Auto Care locations are spread across Dallas, Houston, and San Antonio.

Caliber-Auto-care-Sun-Auto
Goodturn Tire & Auto launches platform with 24 locations

Goodturn is a family of brands that provide automotive and tire repair and maintenance services, serving approximately 90k customers in 2023.

Hunter’s new Hunter University is designed to train customers, techs and instructors

The online courses are generally presented in five-minute segments.

PR-Training-Hunter-University-1400
Apollo Tires US recalls certain Vredestein, Quatrac tires

Dealers will replace the tires free of charge.

Recall

Other Posts

Discount Tire, Major League Soccer (MLS) announce multiyear partnership

Discount Tire has also struck a partnership to be the official tire retailer of Inter Miami CF and is collaborating with Continental Tire.

Discount-Tire-MLS-sponsorship
Net Driven acquires CarCareConnect

With this acquisition, CarCareConnect customers will gain access to Net Driven’s suite of digital storefront and digital marketing solutions.

Handshake agreement
Hankook Tire America recalls select Kinergy GT tires

Certain Kinergy GT tires, size 235/60R18H H436, are missing the missing the four-digit week and year code mark.

Recall
TRIB’s new website offers tailored services for members

One of the highlights of the redesigned website is the introduction of the retread environmental savings calculator.

TRIB-new-website