Q4 2023 Earnings Summary
Reported on Feb 13, 2024 (After Market Close)
Pre-Earnings Price$11.59Last close (Feb 13, 2024)
Post-Earnings Price$11.65Open (Feb 14, 2024)
Price Change
$0.06(+0.52%)
- Goodyear expects $350 million in cost savings in 2024 from the Goodyear Forward program, which is progressing as planned to achieve a sustainable operational margin of 10%. ,
- Strategic investments in factory modernization and expansion will increase high-value-added (HVA) tire capacity by 2.5 million units by the end of 2026, improving product mix and supporting revenue growth.
- New CEO Mark Stewart brings valuable OEM experience from Stellantis and is focusing on executing the Goodyear Forward plan with an emphasis on manufacturing efficiency and cost-effectiveness. ,
- Restructuring delays in Europe affecting profitability improvements: Goodyear acknowledged that achieving a high single-digit SOI margin in Europe will take longer than anticipated, not reaching the target by the end of 2025 due to additional work needed beyond factory closures.
- Market share losses, particularly in Europe, due to competition from budget brands: Since 2019, Goodyear has lost significant market share in the European consumer replacement market to imported budget brands, which have grown by about 15 million units while the industry shrank by 7 million units.
- Headwinds from increased costs and operational inefficiencies impacting earnings: Goodyear expects a $75 million headwind in the second half of 2024 from higher insurance premiums and manufacturing inefficiencies related to factory closures in Europe. Additionally, they will absorb about $60 million in OE RMI costs, primarily impacting the first half of 2024.
Research analysts covering GOODYEAR TIRE & RUBBER CO /OH/.