Q1 2024 Earnings Summary
Reported on May 7, 2024 (After Market Close)
Pre-Earnings Price$12.42Last close (May 7, 2024)
Post-Earnings Price$12.28Open (May 8, 2024)
Price Change
$-0.14(-1.13%)
- Goodyear increased its expected 2024 Goodyear Forward plan benefits from $350 million to at least $375 million, with potential to exceed this amount due to successful plant optimization and purchasing initiatives.
- The company is confident in achieving $1.3 billion run-rate improvements and a 10% segment operating income margin by the end of 2025, indicating strong future earnings and cash flow sustainability.
- Goodyear expects positive price/mix in the second half of the year, driven by new premium product launches and improved market conditions, which should enhance profitability.
- Increased competition from low-end imports, particularly in Europe where imports have grown from 20% to 27% over the last five years, is eroding market share and pressuring margins.
- The company anticipates significant cost headwinds totaling about $215 million for the full year, weighted towards the second half, due to inflation, higher insurance costs, and additional costs from factory closures in Europe, which could negatively impact profitability.
- Deliberate exit from low-margin businesses may lead to lower volumes and revenue in the near term as the company prioritizes profitability over market share, potentially impacting growth if the competitive environment worsens.
Research analysts covering GOODYEAR TIRE & RUBBER CO /OH/.