Goodyear Tire & Rubber — Nov 4, 2024 release
Fiscal 2024 third-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001193125-24-250649
Showing in the filing
Net leverage commitment
“2.0x – 2.5x”
Period
FY2025
Measure
Company-defined measure
Source
Prose
All guidance in this release · 6
Goodyear Forward gross run-rate gains target for FY2025
“$1.5 billion”
Goodyear Forward gross benefits for FY2024
“$450 million”
Goodyear Forward year-over-year gross benefits for FY2025
“$750 million”
SOI margin target for Q4 FY2024
“10%”
Net leverage commitment for FY2025
“2.0x – 2.5x”
Leverage target for Q4 FY2024
“2.0x – 2.5x”
Exhibit 99.1 · full document
Exhibit 99.1
Goodyear announces Q3 2024 results, increases Goodyear Forward
targets Third quarter Goodyear net loss of $34 million (12 cents per
share); adjusted net income of $105 million (37 cents per share) Segment
operating income of $347 million; SOI margin of 7.2%, up ~70 bps YoY
FOR IMMEDIATE RELEASE
Fourth consecutive quarter of SOI margin expansion; TTM up ~300 bps YoY
Americas segment operating income of $251 million, SOI margin of
8.8%
> GLOBAL HEADQUARTERS:
200 INNOVATION WAY,
AKRON, OHIO 44316-0001
Asia Pacific segment operating income of $72 million, SOI
margin of 11.7% Goodyear Forward targets increased, portfolio optimization in
progress
> MEDIA WEBSITE:
WWW.GOODYEARNEWSROOM.COM
> MEDIA CONTACT:
DOUG GRASSIAN
330.796.3855
DOUG_GRASSIAN@GOODYEAR.COM
> ANALYST CONTACT:
GREG SHANK 330.796.5008
GREG_SHANK@GOODYEAR.COM
AKRON, Ohio, November 4, 2024 – The Goodyear Tire & Rubber Company reported third quarter 2024 results today and the
company will host an investor call tomorrow morning at 8:30 a.m. eastern time led by Mark Stewart, Goodyear’s chief executive officer and president, and Christina Zamarro, the company’s executive vice president and chief financial
officer. The management team will share insights on third quarter performance and progress on the Goodyear Forward transformation plan.
“As a result of the consistent and strong execution of our Goodyear Forward transformation plan, we successfully achieved four consecutive quarters of
segment operating margin expansion. These tangible results are not only a testament to the talent of our team, but also to the strong foundation of Goodyear,” said Chief Executive Officer and President Mark Stewart. “Throughout the
company, we are delivering solid results. Due to the strong momentum underway, we are increasing our target for gross run-rate gains from Goodyear Forward to $1.5 billion by the end of 2025.”
“This increase will enable us to realize significant year-over-year earnings
benefits in both 2024 and 2025 from the program,” continued Stewart. “We have raised our guidance for 2024 Goodyear Forward gross benefits to $450 million and we continue to expect an additional $750 million of year-over-year
gross benefits in 2025. We remain confident we will achieve our 10% SOI margin and 2.0x – 2.5x leverage targets in the fourth quarter of next year.”
The Goodyear Forward transformation plan was announced in November 2023 to create a more profitable enterprise and drive shareholder value creation. Run rate
cost reduction and top line benefits have been increased by $200 million above the original $1.3 billion target. The company continues to expect to realize gross proceeds in excess of $2 billion from portfolio optimization and
reaffirms its commitment to net leverage of 2.0x – 2.5x by the end of 2025.
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1
Goodyear’s third quarter 2024 sales were $4.8 billion, with tire unit volumes totaling
42.5 million. Third quarter 2024 Goodyear net loss was $34 million (12 cents per share) compared to a Goodyear net loss of $89 million (31 cents per share) a year ago. The third quarter of 2024 included several significant items
including, on a pre-tax basis, an intangible asset impairment of $125 million, Goodyear Forward costs of $25 million and rationalization charges of $11 million. The third quarter of 2023
included pre-tax rationalization charges of $198 million. The intangible asset impairment includes a significant reduction in the carrying value of the company’s tier three Mastercraft and Roadmaster
brands given lower volume as a result of increased competition in opening price points in the U.S. market and plans under Goodyear Forward to increase overall profitability. Goodyear Forward costs are comprised of advisory, legal and consulting fees
and costs associated with planned asset sales. Third quarter 2024 adjusted net income was $105 million compared to adjusted net income of
$104 million in the prior year’s quarter. Adjusted earnings per share was $0.37, compared to $0.36 in the prior year’s quarter. Per share amounts are diluted.
The company reported segment operating income of $347 million in the third quarter of 2024, up $11 million from a year ago. The increase in segment
operating income reflects benefits of $123 million from the Goodyear Forward transformation plan and $17 million from insurance proceeds, net of current year expenses, primarily related to storm damage in prior years. These were partly
offset by the impact of lower tire volume of $74 million and inflation of $53 million. Additional earnings materials can be found on
Goodyear’s investor relations website at http://investor.goodyear.com .
Year-to-Date Results
Goodyear’s sales for the first nine months of 2024 were $13.9 billion with tire unit volumes totaling 123.0 million. First nine months 2024
Goodyear net loss was $6 million (2 cents per share) compared to a Goodyear net loss of $398 million ($1.40 per share) a year ago. The year over year improvement was driven by increases in segment operating income. The first nine months of
2024 also included several significant items including, on a pre-tax basis, an intangible asset impairment of $125 million, Goodyear Forward costs of $92 million, rationalization charges of
$52 million, and a benefit of $87 million from asset and other sales. The first nine months of 2023 included, on a pre-tax basis, rationalization charges of $302 million and a $58 million
benefit from asset and other sales. First nine months 2024 adjusted net income was $189 million compared to an adjusted net loss of $75 million
in the prior year. Adjusted earnings per share was $0.66, compared to a loss of $0.26 in the prior year. The company reported segment operating income of
$933 million for the first nine months of 2024, up $348 million from a year ago. The increase in segment operating income reflects benefits of $285 million from the Goodyear Forward transformation plan, $235 million from net
price/mix versus raw material costs, $69 million from insurance proceeds, net of current year expenses, and $55 million from the 2023 negative impact of the Tupelo storm. These were partially offset by lower tire volume of
$143 million and a net headwind of $116 million from inflationary costs. First nine months 2024 total cash flows from operating activities was
a use of $591 million compared with a use of $204 million in the first nine months of 2023.
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2
Reconciliation of Non-GAAP Financial Measures
See “Non-GAAP Financial Measures” and “Financial Tables” for further explanation and reconciliation
tables for historical Total Segment Operating Income and Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings per Share, reflecting the impact of certain significant items on the 2024 and 2023 periods.
Business Segment Results AMERICAS
Third Quarter
Nine Months
(In millions)
2024
2023
2024
2023
Tire Units
21.0
22.9
59.6
64.2
Net Sales
$
2,858
$
3,120
$
8,143
$
8,926
Segment Operating Income
251
258
671
440
Segment Operating Margin
8.8
%
8.3
%
8.2
%
4.9
%
Americas’ third quarter 2024 sales of $2.9 billion were 8.4% lower, driven by declines in replacement volume. Tire
unit volume decreased 8.3%. Replacement tire unit volume decreased 11.3%, reflecting industry member declines in the U.S. and actions taken to reduce exposure in the low-end of the market. The U.S. industry non-members, generally representing low-cost imported product, grew significantly in the quarter. Original equipment unit volumes were up 7.9%, reflecting new fitment wins.
Third quarter 2024 segment operating income of $251 million decreased $7 million from the prior year’s quarter. The decrease was driven by
lower volume, inflation, and unfavorable price/mix and raw material costs. These headwinds were largely offset by Goodyear Forward savings and insurance proceeds related to storm damage in prior years.
EMEA
Third Quarter
Nine Months
(In millions)
2024
2023
2024
2023
Tire Units
12.2
12.5
36.3
37.5
Net Sales
$
1,348
$
1,374
$
3,974
$
4,207
Segment Operating Income
24
22
67
11
Segment Operating Margin
1.8
%
1.6
%
1.7
%
0.3
%
EMEA’s third quarter 2024 sales of $1.3 billion were 1.9% lower, driven by tire volume declines and the negative
impact of changes in foreign currency exchange rates, partially offset by favorable price/mix. Tire unit volume decreased 2.9%. Original equipment unit volumes decreased 5.6%, reflecting lower OEM production. Replacement tire unit volume decreased
2.1%, driven by decreased volume in smaller rim sizes. Third quarter 2024 segment operating income of $24 million was up $2 million compared to
the prior year’s quarter. Segment operating income benefitted from the Goodyear Forward plan and favorable net price/mix versus raw material costs. These benefits were partly offset by inflation, other costs, and unfavorable fixed overhead
absorption.
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ASIA PACIFIC
Third Quarter
Nine Months
(In millions)
2024
2023
2024
2023
Tire Units
9.3
9.9
27.1
26.2
Net Sales
$618
$
648
$
1,814
$
1,817
Segment Operating Income
72
56
195
134
Segment Operating Margin
11.7
%
8.6
%
10.7
%
7.4
%
Asia Pacific’s third quarter 2024 sales decreased 4.6% to $618 million, driven by lower replacement volume. Tire
unit volume decreased 5.4%. Replacement tire unit volume decreased 13.0%, driven by declines in our key markets, including Australia, China and India. Original equipment unit volume increased 3.6%, driven by growth in EV fitments.
Third quarter 2024 segment operating income of $72 million was up $16 million from prior year driven by benefits from Goodyear Forward, favorable
net price/mix versus raw material costs, and lower net inflationary costs. These factors were partly offset by lower volume. Conference Call
The Company will host an investor call on Tuesday, November 5 at 8:30 a.m. ET. Please visit Goodyear’s investor relations website:
http://investor.goodyear.com , for additional earnings materials. Participating in the conference call will be Mark W. Stewart, chief executive
officer and president, and Christina L. Zamarro, executive vice president and chief financial officer. The investor call can be accessed on the website
or via telephone by calling either (800) 343-4849 or (203) 518-9848 before 8:25 a.m. and providing the conference ID “Goodyear.” A replay will be available by
calling (888) 566-0831 or (402) 220-0121. The replay will also be available on the website.
About Goodyear Goodyear is one of the
world’s largest tire companies. It employs about 71,000 people and manufactures its products in 54 facilities in 21 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about
Goodyear and its products, go to www.goodyear.com/corporate.
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Forward-Looking Statements
Certain information contained in this news release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from
the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully the Goodyear Forward plan and our other strategic initiatives, including
the sale of our off-the-road tire business; risks relating to the ability to consummate the sale of our
off-the-road tire business on a timely basis or at all, including failure to obtain the required regulatory approvals or to satisfy other conditions to closing; actions
and initiatives taken by both current and potential competitors; increases in the prices paid for raw materials and energy; inflationary cost pressures; delays or disruptions in our supply chain or the provision of services to us; a prolonged
economic downturn or period of economic uncertainty; deteriorating economic conditions or an inability to access capital markets; a labor strike, work stoppage, labor shortage or other similar event; financial difficulties, work stoppages, labor
shortages or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; changes in tariffs, trade agreements or trade restrictions; foreign currency translation and transaction risks; our failure to comply with a
material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation,
regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
Non-GAAP Financial Measures (unaudited)
This news release presents non-GAAP financial measures, including Total Segment Operating Income and Margin, Adjusted
Net Income (Loss), and Adjusted Diluted Earnings Per Share (EPS), which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial
measures presented in accordance with U.S. GAAP. Total Segment Operating Income is the sum of the individual strategic business units’ (SBUs’)
Segment Operating Income as determined in accordance with U.S. GAAP. Total Segment Operating Margin is Total Segment Operating Income divided by Net Sales as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating
Income and Margin are useful because they represent the aggregate value of income created by the company’s SBUs and exclude items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP
financial measures to Total Segment Operating Income and Margin are Goodyear Net Income (Loss) and Return on Net Sales (which is calculated by dividing Goodyear Net Income (Loss) by Net Sales).
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5
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as determined in accordance with U.S. GAAP adjusted
for certain significant items. Adjusted Diluted Earnings Per Share (EPS) is the company’s Adjusted Net Income (Loss) divided by Weighted Average Shares Outstanding-Diluted as determined in accordance with U.S. GAAP. Management believes that
Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share (EPS) are useful because they represent how management reviews the operating results of the company excluding the impacts of rationalizations, asset write-offs, accelerated
depreciation, impairments, asset sales and certain other significant items. It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies. See the following tables for
reconciliations of historical Total Segment Operating Income and Margin, Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share to the most directly comparable U.S. GAAP financial measures.
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The Goodyear Tire & Rubber Company and Subsidiaries
Financial Tables (Unaudited) Table 1: Consolidated
Statement of Operations
Three Months Ended
Nine Months Ended
September 30,
September 30,
(In millions,except per share amounts)
2024
2023
2024
2023
Net Sales
$
4,824
$
5,142
$
13,931
$
14,950
Cost of Goods Sold
3,881
4,171
11,218
12,487
Selling, Administrative and General Expense
663
673
2,090
2,045
Intangible Asset Impairment
125
—
125
—
Rationalizations
11
198
52
302
Interest Expense
135
138
391
403
Other (Income) Expense
34
21
(8
)
82
Income (Loss) before Income Taxes
(25
)
(59
)
63
(369
)
United States and Foreign Tax Expense
9
25
75
22
Net Income (Loss)
(34
)
(84
)
(12
)
(391
)
Less: Minority Shareholders’ Net Income (Loss)
—
5
(6
)
7
Goodyear Net Income (Loss)
$
(34
)
$
(89
)
$
(6
)
$
(398
)
Goodyear Net Income (Loss) — Per Share of Common Stock
Basic
$
(0.12
)
$
(0.31
)
$
(0.02
)
$
(1.40
)
Weighted Average Shares Outstanding
287
285
286
285
Diluted
$
(0.12
)
$
(0.31
)
$
(0.02
)
$
(1.40
)
Weighted Average Shares Outstanding
287
285
286
285
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Table 2: Consolidated Balance Sheets
September 30,
December 31,
(In millions, except share data)
2024
2023
Assets:
Current Assets:
Cash and Cash Equivalents
$
905
$
902
Accounts Receivable, less Allowance — $94 ($102 in 2023)
3,380
2,731
Inventories:
Raw Materials
796
785
Work in Process
212
206
Finished Products
2,804
2,707
3,812
3,698
Assets Held for Sale
495
—
Prepaid Expenses and Other Current Assets
309
319
Total Current Assets
8,901
7,650
Goodwill
759
781
Intangible Assets
814
969
Deferred Income Taxes
1,662
1,630
Other Assets
1,147
1,075
Operating Lease
Right-of-Use Assets
981
985
Property, Plant and Equipment, less Accumulated Depreciation — $12,515 ($12,472 in
2023)
8,285
8,492
Total Assets
$
22,549
$
21,582
Liabilities:
Current Liabilities:
Accounts Payable — Trade
$
4,050
$
4,326
Compensation and Benefits
685
663
Other Current Liabilities
1,261
1,165
Notes Payable and Overdrafts
587
344
Operating Lease Liabilities due Within One Year
202
200
Long Term Debt and Finance Leases due Within One Year
1,013
449
Total Current Liabilities
7,798
7,147
Operating Lease Liabilities
829
825
Long Term Debt and Finance Leases
7,428
6,831
Compensation and Benefits
877
974
Deferred Income Taxes
103
83
Other Long Term Liabilities
610
885
Total Liabilities
17,645
16,745
Commitments and Contingent Liabilities
Shareholders’ Equity:
Goodyear Shareholders’ Equity:
Common Stock, no par value:
Authorized, 450 million shares, Outstanding shares — 285 million in 2024
(284 million in 2023)
285
284
Capital Surplus
3,152
3,133
Retained Earnings
5,080
5,086
Accumulated Other Comprehensive Loss
(3,772
)
(3,835
)
Goodyear Shareholders’ Equity
4,745
4,668
Minority Shareholders’ Equity — Nonredeemable
159
169
Total Shareholders’ Equity
4,904
4,837
Total Liabilities and Shareholders’ Equity
$
22,549
$
21,582
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Table 3: Consolidated Statements of Cash Flows
Nine Months Ended
September 30,
(In millions)
2024
2023
Cash Flows from Operating Activities:
Net Income (Loss)
$
(12
)
$
(391
)
Adjustments to Reconcile Net Income (Loss) to Cash Flows from Operating Activities:
Depreciation and Amortization
800
751
Amortization and Write-Off of Debt Issuance Costs
10
11
Intangible Asset Impairment
125
—
Provision for Deferred Income Taxes
(37
)
(138
)
Net Pension Curtailments and Settlements
(5
)
40
Net Rationalization Charges
52
302
Rationalization Payments
(149
)
(72
)
Net (Gains) Losses on Asset Sales
(95
)
(68
)
Gain on Insurance Recoveries for Damaged Property, Plant and Equipment
(61
)
—
Operating Lease Expense
249
224
Operating Lease Payments
(211
)
(207
)
Pension Contributions and Direct Payments
(45
)
(54
)
Changes in Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
Accounts Receivable
(658
)
(816
)
Inventories
(259
)
590
Accounts Payable — Trade
(207
)
(585
)
Compensation and Benefits
39
45
Other Current Liabilities
(58
)
222
Other Assets and Liabilities
(69
)
(58
)
Total Cash Flows from Operating Activities
(591
)
(204
)
Cash Flows from Investing Activities:
Capital Expenditures
(912
)
(807
)
Insurance Recoveries for Damaged Property, Plant and Equipment
48
—
Cash Proceeds from Sale and Leaseback Transactions
16
73
Asset Dispositions
110
3
Short Term Securities Acquired
—
(96
)
Short Term Securities Redeemed
2
88
Long Term Securities Acquired
—
(11
)
Long Term Securities Redeemed
4
6
Notes Receivable
(28
)
(61
)
Other Transactions
1
(13
)
Total Cash Flows from Investing Activities
(759
)
(818
)
Cash Flows from Financing Activities:
Short Term Debt and Overdrafts Incurred
1,034
793
Short Term Debt and Overdrafts Paid
(803
)
(863
)
Long Term Debt Incurred
10,315
7,321
Long Term Debt Paid
(9,180
)
(6,464
)
Common Stock Issued
(3
)
(2
)
Transactions with Minority Interests in Subsidiaries
(2
)
(4
)
Debt Related Costs and Other Transactions
(46
)
(7
)
Total Cash Flows from Financing Activities
1,315
774
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
(10
)
(5
)
Net Change in Cash, Cash Equivalents and Restricted Cash
(45
)
(253
)
Cash, Cash Equivalents and Restricted Cash at Beginning of the Period
985
1,311
Cash, Cash Equivalents and Restricted Cash at End of the Period
$
940
$
1,058
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Table 4: Reconciliation of Segment Operating Income & Margin
Three Months Ended
Nine Months Ended
September 30,
September 30,
(In millions)
2024
2023
2024
2023
Total Segment Operating Income
$
347
$
336
$
933
$
585
Less:
Intangible Asset Impairment
125
—
125
—
Rationalizations
11
198
52
302
Interest Expense
135
138
391
403
Other (Income) Expense
34
21
(8
)
82
Asset Write-Offs, Accelerated Depreciation, and Accelerated Lease Costs, Net
25
8
119
21
Corporate Incentive Compensation Plans
14
2
50
43
Retained Expenses of Divested Operations
3
2
11
10
Other
25
26
130
93
Income (Loss) before Income Taxes
$
(25
)
$
(59
)
$
63
$
(369
)
United States and Foreign Tax Expense
9
25
75
22
Less: Minority Shareholders’ Net Income (Loss)
—
5
(6
)
7
Goodyear Net Income (Loss)
$
(34
)
$
(89
)
$
(6
)
$
(398
)
Net Sales
$
4,824
$
5,142
$
13,931
$
14,950
Return on Net Sales
-0.7
%
-1.7
%
0.0
%
-2.7
%
Total Segment Operating Margin
7.2
%
6.5
%
6.7
%
3.9
%
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Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
Third Quarter 2024
(In millions, except per share amounts)
As Reported
Intangible Asset Impairment
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases
Goodyear Forward Costs
Indirect Tax Settlements and Discrete Tax Items
Debica Fire Impact and Insurance Recoveries
Americas Storm Insurance Recoveries
As Adjusted
Net Sales
$
4,824
$
—
$
—
$
—
$
—
$
—
$
—
$
4,824
Cost of Goods Sold
3,881
—
(19
)
—
—
(3
)
20
3,879
Gross Margin
943
—
19
—
—
3
(20
)
945
SAG
663
—
(6
)
(14
)
—
—
—
643
Intangible Asset Impairment
125
(125
)
—
—
—
—
—
—
Rationalizations
11
—
(11
)
—
—
—
—
—
Interest Expense
135
—
—
—
—
—
—
135
Other (Income) Expense
34
—
—
(11
)
—
—
—
23
Pre-tax Income (Loss)
(25
)
125
36
25
—
3
(20
)
144
Taxes
9
31
3
6
(7
)
1
(5
)
38
Minority Interest
—
—
1
—
—
—
—
1
Goodyear Net Income (Loss)
$
(34
)
$
94
$
32
$
19
$
7
$
2
$
(15
)
$
105
EPS
$
(0.12
)
$
0.33
$
0.11
$
0.07
$
0.02
$
0.01
$
(0.05
)
$
0.37
Third Quarter 2023
(In millions, except per share amounts)
As Reported
Rationalizations, Asset Write-offs, and Accelerated Depreciation
Debica Fire Impact
Tupelo Storm Impact
Pension Settlement Charges
Other Legal Claims
Asset and Other Sales
Indirect Tax Settlements and Discrete Tax Items
As Adjusted
Net Sales
$
5,142
$
—
$
11
$
33
$
—
$
—
$
—
$
—
$
5,186
Cost of Goods Sold
4,171
(8
)
(3
)
28
—
—
—
—
4,188
Gross Margin
971
8
14
5
—
—
—
—
998
SAG
673
—
—
—
—
—
—
—
673
Rationalizations
198
(198
)
—
—
—
—
—
—
—
Interest Expense
138
—
—
—
—
—
—
—
138
Other (Income) Expense
21
—
—
—
(4
)
(4
)
6
—
19
Pre-tax Income (Loss)
(59
)
206
14
5
4
4
(6
)
—
168
Taxes
25
22
1
1
1
1
(2
)
8
57
Minority Interest
5
—
1
—
1
—
—
—
7
Goodyear Net Income (Loss)
$
(89
)
$
184
$
12
$
4
$
2
$
3
$
(4
)
$
(8
)
$
104
EPS
$
(0.31
)
$
0.64
$
0.04
$
0.01
$
0.01
$
0.01
$
(0.01
)
$
(0.03
)
$
0.36
(more)
11
Table 5: Reconciliation of Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share
(continued) First Nine Months 2024
(In millions, except per share amounts)
As Reported
Rationalizations, Asset Write-offs, Accelerated Depreciation and Leases
Intangible Asset Impairment
Goodyear Forward Costs
South Africa Flood Impact
Pension Settlement Charges (Credits)
Indirect Tax Settlements and Discrete Tax Items
Debica Fire Impact and Insurance Recoveries
Americas Storm Insurance Recoveries
Asset and Other Sales
As Adjusted
Net Sales
$
13,931
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
13,931
Cost of Goods Sold
11,218
(95
)
—
—
(3
)
—
8
26
39
—
11,193
Gross Margin
2,713
95
—
—
3
—
(8
)
(26
)
(39
)
—
2,738
SAG
2,090
(24
)
—
(81
)
—
—
—
—
—
—
1,985
Intangible Asset Impairment
125
—
(125
)
—
—
—
—
—
—
—
—
Rationalizations
52
(52
)
—
—
—
—
—
—
—
—
—
Interest Expense
391
—
—
—
—
—
—
—
—
—
391
Other (Income) Expense
(8
)
—
—
(11
)
—
5
2
—
—
87
75
Pre-tax Income (Loss)
63
171
125
92
3
(5
)
(10
)
(26
)
(39
)
(87
)
287
Taxes
75
15
31
22
—
(1
)
(9
)
(6
)
(9
)
(26
)
92
Minority Interest
(6
)
15
—
—
—
—
—
(3
)
—
—
6
Goodyear Net Income (Loss)
$
(6
)
$
141
$
94
$
70
$
3
$
(4
)
$
(1
)
$
(17
)
$
(30
)
$
(61
)
$
189
EPS
$
(0.02
)
$
0.49
$
0.33
$
0.24
$
0.01
$
(0.01
)
$
(0.01
)
$
(0.06
)
$
(0.10
)
$
(0.21
)
$
0.66
First Nine Months 2023
(In millions, except per share amounts)
As Reported
Rationalizations, Asset Write-offs, and Accelerated Depreciation
Tupelo Storm Impact
Pension Settlement Charges
Debica Fire Impact
Other Legal Claims
Environmental Remediation Adjustment
Foreign Currency Translation Adjustment Write-Off
Indirect Tax Settlements and Discrete Tax Items
Asset and Other Sales
As Adjusted
Net Sales
$
14,950
$
—
$
110
$
—
$
11
$
—
$
—
$
—
$
—
$
—
$
15,071
Cost of Goods Sold
12,487
(31
)
41
—
(3
)
3
5
—
—
—
12,502
Gross Margin
2,463
31
69
—
14
(3
)
(5
)
—
—
—
2,569
SAG
2,045
10
—
—
—
—
—
—
—
—
2,055
Rationalizations
302
(302
)
—
—
—
—
—
—
—
—
—
Interest Expense
403
—
—
—
—
—
—
—
—
—
403
Other (Income) Expense
82
—
—
(40
)
—
(8
)
—
5
—
58
97
Pre-tax Income (Loss)
(369
)
323
69
40
14
5
(5
)
(5
)
—
(58
)
14
Taxes
22
45
13
9
1
2
(1
)
—
5
(17
)
79
Minority Interest
7
—
—
1
1
—
—
—
1
—
10
Goodyear Net Income (Loss)
$
(398
)
$
278
$
56
$
30
$
12
$
3
$
(4
)
$
(5
)
$
(6
)
$
(41
)
$
(75
)
EPS
$
(1.40
)
$
0.98
$
0.20
$
0.10
$
0.04
$
0.01
$
(0.01
)
$
(0.02
)
$
(0.02
)
$
(0.14
)
$
(0.26
)
12
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.