Goodyear Posts Sales, Operating Losses for 2020
Goodyear Tire & Rubber Co.'s full-year 2020 net sales totaled $12.3 billion, a 16% decline from 2019 levels. The Akron, Ohio-based tiremaker also suffered a net loss of $1.3 billion for the year versus a loss of $311 million during 2019.
Goodyear also reported a segment operating loss of $14 million during 2020, down $959 million from one year ago.
"The decrease was primarily due to lower volume, reduced factory utilization and lower earnings from other tire-related businesses," according to Goodyear officials.
The company's overall tire unit volumes during 2020 totaled 126 million, down 19% from 2019.
"Replacement tire shipments decreased 17%, primarily reflecting lower industry demand. Original equipment volume declined 23%, driven by lower global vehicle production."
Goodyear's Americas region posted full-year sales of $6.5 billion, down from $7.9 billion recorded during 2019. However, the company's fourth quarter 2020 operating income in the Americas climbed $38 million versus 4Q 2019 levels to $190 million - driven "by a one-time benefit related to a legal settlement, the benefits of cost saving actions and improvements in price/mix," say Goodyear officials.
Overall, during the fourth quarter of 2020, Goodyear achieved company-wide sales of $3.7 billion, a 2% drop from the same period in 2019. Fourth quarter 2020 tire unit volumes were down 5% from 4Q 2019 levels. "Replacement tire shipments declined 7%, reflecting the impact of lower consumer demand and actions taken to align European distribution. Original equipment unit volume increased 3%, reflecting increased market share" in the manufacturer's Americas and Europe, Middle East and Africa regions.
During 4Q 2020, Goodyear achieved net income of $63 million versus a net loss of $392 million during 4Q 2019.
"We delivered strong performance to end a challenging year," says Goodyear Chairman, CEO and President Rich Kramer.
"With a determination to win with our products in the marketplace and a relentless focus on cost and cash, we finished the year on a high note."
Kramer believes that Goodyear has "good momentum as we enter 2021" and is "confident" that the tiremaker is "positioned to capitalize on stronger industry fundamentals."