AKRON – Goodyear reported improved net profits for the fourth quarter and the year, as the company began seeing results from its Goodyear Forward transformation plan.
Goodyear released its fourth quarter and full-year earnings for 2024 after the stock market's close on Feb. 13.
The company's net income for the fourth quarter was $76 million, considerably improved from the loss of $291 million last year. Adjusted net income was $114 million compared to $135 million the year before.
Goodyear had fourth quarter sales of $4.9 billion, with tire unit volumes totaling 43.6 million.
For the year, Goodyear's net income was $70 million compared to a net loss of $689 million in 2023. Increases in segment operating income drove the improvement. Adjusted annual net income jumped nearly fivefold to $302 million.
Goodyear's annual sales were $18.9 billion, with tire unit volumes totaling 166.6 million.
"As I reflect on my first year at Goodyear, I am pleased with the progress we have made," Mark Stewart, president and CEO, said in a statement. "We exceeded our full year 2024 Goodyear Forward expectations and raised our targets for 2025, grew earnings and segment operating margins across all business units, and successfully reached agreements to divest non-core assets as part of our comprehensive strategic review. Moving forward, we remain committed to achieving our expanded Goodyear Forward targets, including further margin expansion and meaningful debt reduction."
Goodyear's segment operating income (SOI) was $385 million for the quarter, up $2 million from a year ago. SOI included $195 million from Goodyear Forward and $52 million from insurance proceeds related to storm damage. Those benefits were partly offset by unfavorable price/mix versus raw material costs of $149 million, lower tire volume of $42 million and unabsorbed fixed costs of $39 million.
For the year, the company's SOI was $1.32 billion, up $350 million from a year ago, thanks to $480 million from Goodyear Forward, $121 million from insurance proceeds, net of current year expenses, and $86 million from net price/mix versus raw material costs. The benefits were partly offset by increased inflationary costs of $220 million and lower tire volume of $185 million.
Segment results
In the Americas, fourth-quarter tire sales dropped 5.8% to $2.9 billion, driven by declining replacement volume and unfavorable price/mix. Tire unit volume fell 4.8% to 22 million and SOI fell 15% to $262 million but was largely offset by Goodyear Forward savings.
For the full year, sales in the Americas were down 8% to $11.03 billion, as tire unit volume dropped 6.5% to 81.6 million. SOI for the year was up 24.6 percent to $933 million, including $52 million of insurance claim recoveries, mostly related to the 2023 Tupelo storm.
In Europe, the Middle East and Africa, fourth quarter tires sales were $1.5 billion, up 3.7%, and tire volumes grew 1.5% to 12.6 million over last year. Quarterly SOI was $41 million, up $35 million from the year before due to Goodyear Forward and recovery from the fire at the Debica, Poland, facility.
For the year, EMEA sales fell 3.2% to $5.4 billion as tire unit volume dropped 2% to 48.9 million. SOI for 2024 was $108 million, a six-fold increase over the year before.
In the Asia-Pacific segment, fourth quarter sales dropped 6.8% to $606 million and tire unit volume sank 9.3% to 9 million due to lower replacement tire unit volume. Goodyear Forward benefits and lower costs increased quarterly SOI by 20.5 percent to $82 million.
Asia-Pacific sales for the year were down 2% to $2.4 billion as tire unit volume remained flat at 36.1 million. SOI for the year was up 37% to $277 million.
Stewart and Christina L. Zamarro, executive vice president and chief financial officer, will hold a conference call to discuss Goodyear's financial results with investors on Feb. 14 at 9 a.m. Eastern.
Earlier this month, Yokohama Rubber Co. Ltd. completed its acquisition of Goodyear's off-the-road (OTR) tire business in an all-cash transaction of approximately $905 million.
Goodyear also announced it was eliminating approximately 850 positions at its Danville, Va. plant as it transitions from commercial truck tire production to mixing and production of aviation products. The shift is part of the company's "Goodyear Forward" global transformation plan.
