Goodyear Tire & Rubber Company Reports Mixed Q3 2024 Results, Net Loss Narrows

As of September 30, 2024, Goodyear Tire & Rubber Company reported total current assets of $8,901 million, an increase from $7,650 million at the end of 2023. Total assets rose to $22,549 million, up from $21,582 million. However, total current liabilities also increased to $7,798 million from $7,147 million, leading to total liabilities of $17,645 million, compared to $16,745 million at the end of 2023. Shareholders' equity improved to $4,745 million from $4,668 million.

For the third quarter of 2024, Goodyear's net sales were $4,824 million, a decline of 6.2% from $5,142 million in Q3 2023. This decrease was attributed to lower tire volume and negative foreign exchange impacts. Tire unit sales for the quarter totaled 42.5 million, down from 45.3 million in the previous year. The company reported a net loss of $34 million, or $0.12 per share, compared to a net loss of $89 million, or $0.31 per share, in Q3 2023. Despite the drop in sales, total segment operating income increased to $347 million from $336 million, driven by benefits from the Goodyear Forward transformation plan.

For the nine months ended September 30, 2024, net sales totaled $13,931 million, down from $14,950 million in the same period of 2023. The net loss narrowed to $6 million, or $0.02 per share, compared to a net loss of $398 million, or $1.40 per share, in the prior year. Total segment operating income for the nine months was $933 million, significantly up from $585 million, primarily due to lower raw material costs and the Goodyear Forward plan's benefits.

Goodyear's rationalization efforts included plans to reduce selling, administrative, and general expenses, resulting in net headcount reductions of approximately 190 by the end of Q3 2024. The company recorded a non-cash impairment charge of $125 million in Q3 2024 related to indefinite-lived intangible assets from the acquisition of Cooper Tire. Additionally, Goodyear signed an agreement to sell its off-the-road tire business to Yokohama for $905 million, with the transaction expected to close in early 2025.

Cash flows from operating activities for the nine months ended September 30, 2024, were $(591) million, reflecting increased working capital needs. Capital expenditures for the same period were $912 million, up from $807 million in 2023. The company’s total credit arrangements stood at $11,496 million, with $2,508 million unused as of September 30, 2024.