The Goodyear Tire & Rubber Company said its first quarter 2024 sales were $4.5 billion, with tire unit volumes totaling $40.4 million. For the first quarter, Goodyear’s net loss was $57 million compared to a Goodyear net loss of $101 million a year ago. Leadership said the year-over-year improvement was driven by increases in segment operating income. The 2024 period also included items like, on a pre-tax basis, Goodyear Forward costs of $28 million and rationalization charges of $22 million, compared with pre-tax rationalization charges of $32 million in 2023. Goodyear said Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.
According to Goodyear, the Goodyear Forward plan aims to optimize its portfolio, expand margins, reduce debt and enhance shareholder value.
Americas’ first quarter 2024 sales of $2.6 billion were down 9.7%, which Goodyear said was driven by lower replacement volumes and unfavorable price/mix due to continuing industry weakness in commercial truck and contractual price adjustments. Meanwhile, tire unit volume decreased 7.4%. Replacement tire unit volume decreased 9.2% given industry member declines in the U.S. Industry non-members, generally representing low-cost imported product, grew significantly in the quarter. Original equipment unit volumes were flat.
The company also reported segment operating income of $247 million in the first quarter of 2024, up $122 million from a year ago. Goodyear said the increase in segment operating income reflects benefits of $127 million from price/mix versus raw materials and $72 million from the Goodyear Forward transformation plan. Goodyear said these were partly offset by the impact of net inflationary costs of $33 million and lower tire volume of $28 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.
First quarter 2024 segment operating income of $179 million increased $100 million from the prior year’s quarter. The company said the increase was driven by lower transportation costs, benefits from the execution of Goodyear Forward initiatives and favorable net price/mix versus raw material costs. These benefits were partly offset by inflationary costs and lower volume.
The company said Europe, Middle East, and Africa’s (EMEA) first quarter 2024 sales of $1.3 billion were down 9.7% driven by lower replacement volumes and unfavorable price/mix due to a weak commercial truck industry and contractual price adjustments, while tire unit volume decreased 5.2% in this segment. Replacement tire unit volume decreased 7.1% given increased competition at the low end of the market driven by non-member imports and industry declines in commercial truck, Goodyear said. Original equipment (OE) unit volumes were flat.
First quarter 2024 segment operating income of $8 million was flat compared to the prior year’s quarter. Segment operating income benefitted from favorable net price/mix versus raw material costs and the Goodyear Forward plan, the company said. These benefits were offset by inflationary costs, lower volume and the impact of the fire at its Debica, Poland facility in 2023.
Asia Pacific’s first quarter 2024 sales increased 3.4% to $602 million, driven by higher original equipment volume, according to Goodyear, while tire unit volume increased 10.0%. OE unit volume increased 26.7%, driven by EV fitments in China and replacement tire unit volume decreased 1.6%, reflecting industry declines, Goodyear says.
First quarter 2024 segment operating income in the Asia Pacific segment of $60 million was up $22 million from prior year driven by favorable net price/mix versus raw material costs, higher volume and benefits from the Goodyear Forward plan. The company said these factors were partly offset by higher inflation.
Tire unit volume also decreased 5.2% and replacement tire unit volume decreased 7.1%.
