Goodyear Recorded $104 Million Loss During 4Q

Goodyear Tire & Rubber Co. experienced a year-over-year net loss of $104 million during the fourth quarter versus income of $553 million during the same period in 2021.

Feb. 8, 2023
2 min read

Goodyear Tire & Rubber Co. experienced a year-over-year net loss of $104 million during the fourth quarter versus income of $553 million during the same period in 2021.

The loss was "primarily due to higher U.S. and foreign tax expense, as well as cost of goods sold increases driven by inflation in excess of increases in net sales," say Goodyear officials.

"After adjusting for significant items, our fourth quarter net income was $20 million, compared to $162 million in the prior year's quarter. Lower adjusted net income primarily reflects reduced segment operating income."

However, the company posted a year-over-year sales increase 6.3% during the fourth quarter of 2022. But Goodyear's volume during 4Q 2022 totaled 47.2 million units, down 3% from prior-year levels.

In its Americas region, Goodyear achieved net sales of $3.4 billion, an 11.8% increase versus the fourth quarter of 2021. Sales gains were driven "by a 13% revenue increase in revenue per tire," say company officials.

Goodyear's Americas segment operating income totaled $279 million versus $308 million a year ago - "a decrease of $29 million."

The Akron, Ohio-based firm's replacement tire volumes declined 1.4% from fourth quarter 2021 levels, while original equipment tire volumes increased 6.1%. The latter "primarily reflected ongoing recovery in auto production.

"At the end of the fourth quarter, consumer replacement channel inventory of legacy Goodyear-branded products increased approximately 10% compared to 2021."

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