Goodyear reports Q1 reversals as rationalisation plan continues

Akron, Ohio – Goodyear has reported lower sales and earnings for the first quarter of 2025, despite gains linked to its ongoing ‘Goodyear Forward’ rationalisation plan.

The US tire maker posted a 21% year-on-year decline in segment operating income to $195 million, on 6.3% lower sales of $4.2 billion.

Volumes for the period dropped 4.8% to 38.5 million units, from 40.4 million units reported last year, Goodyear announced 7 May.

Meanwhile, first quarter 'adjusted net loss' was $11 million compared to 'adjusted net income' of $29 million reported the year before.

Goodyear linked the declines to lower volumes, a sharp increase in cost of raw materials, inflation, unabsorbed fixed costs as well as foreign exchange impacts.

Price-mix and Goodyear Forward, meanwhile, contributed $68 million and $200 million to overall segment operating income respectively.

This marks the strongest quarterly benefit from Goodyear Forward, according to CEO and president Mark Stewart.

"With the sale of the Dunlop brand, we are further optimising our portfolio while strengthening our balance sheet,” he added.

Stewart renewed Goodyear’s commitment to its targets, including segment operating margin of 10% and leverage of 2.0-2.5x in the fourth quarter of this year.

In the Americas, Goodyear saw sales decline 3.3% year-on-year to $2.5 billion, as volumes fell 3.1% to 18.4 million units. Segment operating income dropped 13% to $155 million.

In EMEA, the tire maker narrowed operating loss to $5 million, compared a loss of $13 million last year. Sales fell 3.5% year-on-year to $1.2 billion as volumes decreased 2% to 12.3 million units.

Goodyear also reported declines in Asia Pacific: revenue down 21% to $474 million and segment operating income 25% lower at $45 million.

In the second quarter, Goodyear expects overall volumes to fall 2% year-on-year, with a $20 million headwind from unabsorbed overheads.

As for raw material costs, Goodyear estimates an increase of $180 million in the second quarter, and $50 million in the third quarter, followed by a $25 million decrease in the final three months.

The US group also anticipates a $135-million benefit from recently announced pricing actions as well as a $190-million gain from Goodyear Forward execution.