Goodyear Tire & Rubber's Loss Widens in Q4

Goodyear Tire & Rubber, based in Akron, Ohio, reported a significant widening of its loss in the fourth quarter. The company's business in Europe, the Middle East, and Africa continued to struggle, resulting in a loss of $291 million or $1.02 per share for the quarter ended Dec. 31. In comparison, the loss was $104 million or 37 cents per share in the same period a year earlier.

While analysts polled by FactSet expected a per-share profit of 28 cents, Goodyear's adjusted per-share earnings came to 47 cents, surpassing the forecast of 36 cents by analysts. However, revenue declined 4.8% to $5.12 billion, falling short of the expected $5.38 billion.

The drop in sales was primarily attributed to lower replacement volumes and weaker third-party chemical sales. Goodyear stated in an investor letter that its widened loss was due to a goodwill impairment charge related to its EMEA business, as well as higher rationalization charges.

Tire volumes saw a decline of approximately 3.8%, while global replacement volumes fell 6.7%, largely driven by persistently weak trends in EMEA. Looking ahead, Goodyear anticipates a 2% decrease in global unit volumes in the first quarter. Additionally, the company forecasts a $15 million impact on segment operating income due to a fire incident at its Debica operations in Poland.