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

Yokohama Rubber reveals 2024 motorsports activity plan

Yokohama said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands.

Yokohama-Nitrocross

Yokohama Rubber revealed its motorsports activity plan for 2024. The company said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands and is again participating in a wide variety of motorsports events around the globe, from top-category to grassroots events.

Yokohama Rubber will again supply its Advan tires to many teams participating in motorsports events, such as Japan’s Super GT, the Nürburgring 24-Hour Race and the Pikes Peak International Hill Climb. Yokohama Rubber’s GeoLandar tires will be supplied to teams participating in off-road races in North America and Asia, including the Baja 1000, King of the Hammers, the Mint 400 and the Asia Cross Country Rally.

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway
Nokian Tyres holds bracket challenge on worst roads in North America

In 2023, the tiremaker’s audience voted Quebec as the province or state with the worst road conditions on the continent.

Pothole-Protection-from-Nokian-Tyres

Other Posts

Goodyear releases the RL-5K OTR tire

Goodyear said the RL-5K with three-star capacity also features a deep, 250-level durable tread.

Goodyear_RL_5K-OTR-tire
Gallery: 2024 Big O Tires conference and convention

Highlights from this year’s Big O Tires conference and convention, featuring a general session, trade show and breakout sessions.

Gary-Skidmore
Bridgestone’s Firestone Liberia rubber farm receives ISCC Plus recognition

According to Bridgestone, its Liberia facility earned the ISCC Plus certification for its efforts in reducing environmental impacts.

Firestone_Liberia
Ascenso Tires adds new OEM sales manager

Douglas Duesing has more than ten years of experience working in agriculture, construction and mining OEMs.

Ascenso-Douglas-Duesing-1400