Goodyear sees year-end improvement despite annual loss

AKRON — Goodyear posted operating and net losses of more than $1 billion in fiscal 2020 on 16.4% lower sales, but said its fourth quarter results were strong at the end of a challenging year.

The Akron-based company's operating and net losses hit $1.14 billion and $1.25 billion, respectively, on revenue of $12.3 billion.This compares with a loss of $311 million on revenue of $14.8 billion in 2019.

Fourth quarter results show a profit of $63 million on revenue of $3.66 billion. That compares with a loss of $392 million on revenue of $3.71 billion during the fourth quarter of 2019.

"We delivered strong performance to end a challenging year," CEO Richard Kramer said. "With a determination to win with our products in the marketplace and a relentless focus on cost and cash, we finished the year on a high note."

The 2020 impact of COVID-19 was felt throughout the economy, and Goodyear was no exception.

Goodyear's sales of tires fell 19% to 126 million units last year, including a decrease of 17% in replacement tires and a 23% decrease in original equipment tires, the company said.

Non-cash charges comprised what the company called "several significant items," including a $295 million charge related to deferred tax assets on foreign tax credits, a $182 million charge involving goodwill in the company's business in Europe, the Middle East and Africa, and a $148 million charge "to reduce the carrying value of an equity interest in TireHub."

Goodyear also took $159 million in rationalization charges primarily related to the closing of the company's Gadsden, Ala., tire plant. There also was a $205 million charge primarily related to plans to modernize two plants in Germany.

Adjusting for charges, the net loss was $448 million last year. This compares with adjusted earnings of $253 million for 2019.