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GT Nasdaq· Goodyear Tire & Rubber Co.
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GT Nasdaq· Goodyear Tire & Rubber Co.
Earnings report Q4 2023

Goodyear's Revenue Declines Amidst Challenging Market Conditions

Segments of revenue

The company's net sales for the year ended December 31, 2023, were $20.07 billion, a decrease from $20.81 billion in 2022. This decrease was primarily due to a decrease in third-party chemical sales in the Americas and retread sales in EMEA, partially offset by higher global aviation sales and growth in EMEA's Fleet Solutions.

Strengths

Despite the decrease in revenue, the company managed to increase its global aviation sales and saw growth in EMEA's Fleet Solutions. The company also benefited from the strengthening of the U.S. dollar, which contributed to a decrease in foreign currency translation costs.

Challenges

The company faced several challenges in 2023, including lower tire volume, lower costs in other tire-related businesses, and the negative impact of the Tupelo storm on sales. The decrease in third-party chemical sales in the Americas and retread sales in EMEA also contributed to the decrease in revenue.

Noteworthy

The company announced a transformation plan, Goodyear Forward, in November 2023, which aims to optimize the portfolio, deliver significant margin expansion, and reduce leverage to drive substantial shareholder value creation. The company expects this plan to benefit segment operating income by approximately $350 million in 2024.

Summary

Goodyear faced a challenging year in 2023, with a decrease in net sales from $20.81 billion in 2022 to $20.07 billion. Despite these challenges, the company managed to increase its global aviation sales and saw growth in EMEA's Fleet Solutions. Looking ahead, the company's transformation plan, Goodyear Forward, is expected to benefit segment operating income by approximately $350 million in 2024.

Source documents

Form 10-K  filed on Feb 13, 2024
131 pages scanned

Reference data

Company financials Q4 revenue 5.12B
Analyst estimates Q4 EPS beat by 28.78%
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