James Mulholland's questions to Goodyear Tire & Rubber Co (GT) leadership • Q2 2025
Question
James Mulholland, on behalf of Deutsche Bank, requested a detailed breakdown of the significant 'other costs' within the inflation bucket on the financial walk. He also asked about the expected future impact of the commercial vehicle headwind on segment operating income (SOI) and whether the current quarter represented the peak of this negative impact.
Answer
EVP & CFO Christina Zamarro clarified that the 'inflation and other costs' bucket includes three main drivers: $225 million in annualized inflation, a newly increased $350 million in annualized tariff costs, and incremental manufacturing inefficiencies related to factory ramp-downs under the Goodyear Forward plan. Regarding the commercial vehicle business, she indicated the headwinds would persist, quantifying a $30 million mix impact, an additional $25 million in unabsorbed overhead in the second half, and $20 million in new annualized tariff costs from Brazil and Vietnam.