Goodyear Tire and Rubber Co. on Wednesday reported a net fourth-quarter loss of $104 million in 2022. Sales were up 6.3% compared to the fourth quarter of 2021, despite a 3% decline in tire unit sales to 42.5 million.
The Akron tire manufacturer attributed the loss of 37 cents per share to a variety of factors, including inflation, higher U.S. and foreign taxes and higher pension settlement costs. Adjusted for non-recurring costs, earnings were 7 cents per share, the company said.
Revenue, at $5.37 billion, beat the forecasts of some analysts. Zacks Investment Research had forecast revenue of $5.29 billion.
Results reported were for the quarter ending Dec. 31. On Jan. 27, the company announced the elimination of about 500 salaried positions across its global operations in a cost-cutting move.
The company reported its fourth-quarter results Wednesday afternoon in an emailed letter to investors, citing a disappointing European market.
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“While Goodyear’s global volume results were better than the industry, industry volume was weaker (versus prior year and versus expectations), particularly in Europe,” the company said.
Goodyear Chairman and CEO Roger Kramer said in the statement that inflationary pressures and “weaker industry conditions” were pronounced in the company’s Europe, Middle East and Africa region.
“While we anticipated weaker industry conditions in Europe, the magnitude of the volume softness was greater than expected,” Kramer said in the statement. “Weaker industry volume in the quarter magnified already challenging conditions given the Ukraine conflict and elevated inflation.”
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The Goodyear CEO said inflationary pressures had begun to show signs of easing.
“In particular, raw material and other input costs have moderated recently, which should provide some relief as the year progresses if current trends continue,” Kramer said.
The letter cited continued benefits from its 2021 acquisition of Cooper Tire & Rubber Co. and improving cost trends outside of the EMEA region as positive developments.
European results, lower industry volume and cost inflation were cited as negative pressures in the quarter.
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Leave a message for Alan Ashworth at 330-996-3859 or email him at[email protected]. Follow him on Twitter at @newsalanbeaconj.
