Goodyear Tire Co. – Reports Third Quarter 2020 Financial Results

– Volume improved throughout the third quarter; total unit volume down 9% versus 2019

– Third quarter working capital significantly better than expected; source of cash for the quarter

– Cash and liquidity position maintained; $4.2 billion available at quarter end

– Strong net cost savings in the third quarter, including benefit of rationalization savings

– Record consumer replacement volume in China

AKRON, OH (STL.News) The Goodyear Tire & Rubber Company today reported results for the third quarter and first nine months of 2020.

Goodyear’s third quarter 2020 sales were $3.5 billion, down 9% from one year ago. The decrease was driven by reduced volume, unfavorable foreign currency translation and decreased sales from other tire-related businesses. These factors were partially offset by improvements in price/mix.

Tire unit volumes totaled 36.6 million, down 9% from the prior year’s period. Industry demand during the quarter has been influenced by the continued economic disruption resulting from the COVID-19 pandemic. Replacement tire prices declined 9 percent, reflecting the effect of reduced consumer demand, temporary third-party retail store closings from the U.S., and activities taken to align European distribution. Original equipment unit volume decreased 9%, driven by decreased vehicle manufacturing. The decrease was driven by a decline in segment operating income. Third quarter 2020 adjusted net earnings was $24 million (10 cents per share), compared to adjusted net earnings of $105 million (45 cents per share) at 2019.

The company reported segment operating income of $162 million from the next quarter of 2020, down $132 million from a year ago. The decrease primarily reflects lower quantity, reduced factory usage and reduced earnings from additional tire-related businesses. These factors were partially offset by the advantages of cost saving activities, including ongoing rationalization plans, and improved price/mix.

NOTE: this is NOT the complete release.