The Goodyear Tire & Rubber Company reported a net income of $70 million for the fiscal year ending December 31, 2024, translating to earnings of $0.24 per share. This marks a significant recovery from a net loss of $689 million, or $2.42 per share, in the previous year. The company's net sales for 2024 totaled $18.878 billion, a decrease of 5.9% from $20.066 billion in 2023, primarily attributed to lower tire volumes in the Americas and Europe, Middle East, and Africa (EMEA) regions, as well as unfavorable pricing and product mix changes.
In terms of operational performance, Goodyear's tire unit shipments fell by 3.9% year-over-year, totaling 166.6 million units in 2024 compared to 173.3 million in 2023. The Americas segment, which remains the largest in terms of revenue, reported a decline in tire unit sales to 81.6 million, down from 87.3 million in 2023. The EMEA segment also saw a decrease in tire unit sales, while the Asia Pacific segment maintained flat sales at 36.1 million units. The company employed approximately 68,000 associates globally as of December 31, 2024.
Strategically, Goodyear has initiated a transformation plan called "Goodyear Forward," aimed at optimizing its portfolio and enhancing profitability. This plan includes the divestiture of its Dunlop brand and off-the-road (OTR) tire business, with the Dunlop brand sold to Sumitomo Rubber Industries for $526 million and the OTR business sold to Yokohama for $905 million. The company anticipates that these transactions will contribute to a significant reduction in costs and improved operational efficiency, with expected benefits of approximately $750 million in segment operating income for 2025.
The filing also highlighted the impact of inflationary pressures, which amounted to approximately $220 million in 2024, affecting raw material and operational costs. Goodyear's total segment operating income increased to $1.318 billion in 2024, up from $968 million in 2023, largely due to the benefits realized from the Goodyear Forward plan and lower raw material costs. The company expects to face challenges in the first quarter of 2025, including a projected decline in unit volume and raw material headwinds, but remains focused on executing its strategic initiatives to drive long-term growth.
Looking ahead, Goodyear anticipates a decline in global tire unit volume of approximately 2% to 3% in the first quarter of 2025, driven by high inventories and lower production levels. However, the company remains optimistic about the ongoing benefits from its transformation plan and aims to achieve a segment operating margin of approximately 10% by the end of 2025.
About GOODYEAR TIRE & RUBBER CO /OH/
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