Q2 2024 Earnings Summary
Reported on Aug 1, 2024 (After Market Close)
Pre-Earnings Price$9.84Last close (Aug 1, 2024)
Post-Earnings Price$9.60Open (Aug 2, 2024)
Price Change
$-0.24(-2.44%)
- Significant margin expansion and earnings growth: Goodyear achieved a segment operating income of $339 million and an SOI margin of 7.4%, almost tripling the margin from the second quarter of 2023 , demonstrating strong execution and operational efficiency.
- Strong progress on Goodyear Forward initiatives: The company increased its full-year outlook for Goodyear Forward savings, reflecting great progress across each workstream , and remains confident in delivering its target of 10% SOI margins by the end of next year.
- Remarkable gains in key regions: The Americas saw SOI increase by nearly $140 million from last year , while Asia Pacific delivered its third consecutive quarter of SOI margin above 10%, driven by volume growth in the consumer OE market, particularly in the EV segment.
- Increased competition from low-end imports is negatively impacting Goodyear's market share, particularly in smaller rim sizes where imports have taken shelf space and liquidity from large distributors in the Americas.
- Challenging industry environment with downgrades in OEM production levels and more challenging replacement markets, saturated by low-end imports, which Goodyear anticipates will continue through the second half of the year.
- Declining volumes in Latin America following deliberate shifts in distribution and higher imports, indicating potential challenges in international markets.
Research analysts covering GOODYEAR TIRE & RUBBER CO /OH/.