Goodyear Tire & Rubber Co. recorded net sales of $18.8 billion in 2024, a 5.9% drop from the previous year. The tiremaker sold 166.6 million tires in the year, 3.9% less than it did in 2023.
The tiremaker achieved net income of $70 million for the year, an improvement from the $689 million loss it recorded in 2023.
Goodyear says the increase in segment operating income drove the improvement. For the year, segment operating income totaled $1.3 billion, up 36.2% increase from the $968 million in 2023.
CEO and President Mark Stewart noted he was “pleased with the progress we have made” in his first year at Goodyear.
“We exceeded our full year 2024 Goodyear Forward expectations and raised our targets for 2025, grew earnings and segment operating margins across all business units, and successfully reached agreements to divest non-core assets as part of our comprehensive strategic review.
“Moving forward, we remain committed to achieving our expanded Goodyear Forward targets, including further margin expansion and meaningful debt reduction.”
So far, Goodyear has made deals to divest two of the three assets it targeted as part of its Goodyear Forward program: its OTR business, and the sale of the Dunlop brand. The OTR sale to Yokohama Rubber Co. closed earlier this month, and the sale of the Dunlop brand to Sumitomo Rubber Industries Ltd. is expected to close by the middle of this year. The third asset — Goodyear’s chemical process — remains for sale.
Goodyear’s Fourth Quarter Report
During the fourth quarter, Goodyear notched sales of $4.9 billion, down from $5.1 billion in the same quarter in 2023.
Just like the full-year results, Goodyear made a profit in the fourth quarter — of $76 million — an improvement from the $291 loss during the period in 2023.
Goodyear sold more tires during the fourth quarter than any other period in 2024 — 43.6 million units. It was the best quarter not just globally, but in two out of three regions — the Americas and EMEA. For the Asia Pacific region, its strongest quarter of unit sales was in the third quarter.
The company reported segment operating income of $385 million during the fourth quarter, an increase of $2 million from 2023. That reflects benefits of $195 related to the Goodyear Forward plan, plus $52 million in a final insurance payment related to tornado damage in Tupelo from 2023.
Results from the Americas
Replacement tire unit volume dropped 7% in the Americas during the final quarter of 2024, which Goodyear said reflected declines of other U.S. Tire Manufacturer Association members. “Non-USTMA members, generally representing low-cost imported product, grew significantly in the quarter in the U.S.”
The OE market was up a notable 8.5%, which Goodyear said was based on new fitment wins, as well as a weak U.S. comparison due to the 2023 strike of automaker union members.
Overall, tire unit sales in the Americas totaled 22 million units in the quarter, and 81.6 million units for the full year.
Net sales in the Americas totaled $2.8 billion in the quarter (down 5.7%) and $11.0 billion for the year (down 8%).
