AKRON, Ohio, July 31, 2020 /PRNewswire/ -- The Goodyear Tire
& Rubber Company (NASDAQ: GT) today reported results for
the second quarter and first half of 2020.
"Although our first half results were greatly affected by
difficult industry conditions as a result of the ongoing COVID-19
pandemic, the decisive actions we took to safeguard our business
helped mitigate the impact on our results," said Richard J. Kramer, chairman, chief executive
officer and president.
"While we are encouraged to see industry demand gradually
recovering in most major markets, our plans for the second half
consider the challenges and uncertainties that remain. We continue
to focus on the wellbeing of our associates, servicing our
customers and supporting our brands while appropriately managing
our costs and working capital," added Kramer.
"We are also committed to supporting the strong growth we are
seeing in our e-commerce and mobile installation businesses.
These investments in distribution will strengthen our leadership
position and support our long-term growth prospects as consumer
buying behavior continues to evolve within the tire industry," said
Kramer.
Goodyear's second quarter 2020 sales were $2.1 billion, down 41% from a year ago. The
decline was driven by lower industry volume and reduced sales from
other tire-related businesses. These factors were partially offset
by improvements in price/mix.
Tire unit volumes totaled 20.4 million, down 45% from the prior
year's period. Industry demand during the second quarter was
significantly affected by the actions governments, businesses and
consumers took to slow the spread of COVID-19, with the greatest
impact occurring in April and May. Replacement tire shipments
declined 39%, reflecting the impact of lower consumer demand,
temporary store closings and wholesale and retail customers
reducing inventory levels. Original equipment unit volume decreased
62%, driven by reduced vehicle production, including the effects of
global auto manufacturers temporarily suspending vehicle
production.
Goodyear's second quarter 2020 net loss was $696 million ($2.97
per share) compared to net income of $54
million (23 cents per share) a
year ago. The decrease was driven by a decline in segment operating
income, a non-cash asset impairment charge and higher
rationalization charges.
Second quarter 2020 adjusted net loss was $437 million ($1.87
per share), compared to adjusted net income of $58 million (25
cents per share) in 2019. Per share amounts are diluted.
The company reported a segment operating loss of $431 million in the second quarter of 2020, down
$650 million from a year ago. The
decline primarily reflects lower volume and reduced factory
utilization. These factors were partially offset by lower SAG,
driven by reductions in payroll and advertising expenses relating
to actions taken as a result of the COVID-19 pandemic.
Year-to-Date Results
Goodyear's sales for the first six months of 2020 were
$5.2 billion, a 28% decline from the
2019 period, primarily due to lower volume and reduced sales from
other tire-related businesses. These factors were partially offset
by improvements in price/mix.
Tire unit volumes totaled 51.7 million, down 31% from 2019.
Replacement tire shipments decreased 28%, reflecting lower industry
demand. Original equipment volume declined 41%, driven by lower
global vehicle production.
Goodyear's net loss was $1.3
billion for the first six months of 2020 ($5.62 per share) compared to a net loss of
$7 million (3
cents per share) in the prior year's period. The first half
of 2020 included several significant items, including a non-cash
charge of $295 million related to a
valuation allowance on certain deferred tax assets for foreign tax
credits, a non-cash impairment charge of $182 million to reduce the carrying value of
goodwill in the EMEA business, a non-cash asset impairment charge
of $148 million to reduce the
carrying value of an equity interest in TireHub, and
rationalization charges of $108
million, primarily associated with the previously announced
plan to permanently close a manufacturing facility in Gadsden, Alabama. Goodyear's net income for
the comparable period in 2019 included rationalization charges of
$107 million, primarily related to a
plan to modernize two tire manufacturing facilities in Germany. Goodyear's adjusted net loss for the
first six months was $575 million
($2.46 per share), compared to
adjusted net income of $103 million
(44 cents per share) in the prior
year's period. Per share amounts are diluted.
The company reported a segment operating loss of $478 million for the first six months of 2020,
down $887 million from a year ago.
The decrease was primarily due to lower volume and reduced factory
utilization. These factors were partially offset by lower SAG,
driven by reductions in payroll and advertising expenses.
Reconciliation of Non-GAAP Financial Measures
See the note at the end of this release for further explanation
and reconciliation tables for Segment Operating Income (Loss) and
Margin; Adjusted Net Income (Loss); and Adjusted Diluted Earnings
(Loss) per Share, reflecting the impact of certain significant
items on the 2020 and 2019 periods.
Business Segment Results
Americas
|
Second
Quarter
|
|
Six
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
8.5
|
|
17.1
|
|
23.0
|
|
33.8
|
Net Sales
|
$1,134
|
|
$1,971
|
|
$2,807
|
|
$3,847
|
Segment Operating
Income (Loss)
|
(287)
|
|
134
|
|
(287)
|
|
223
|
Segment Operating
Margin
|
(25.3)%
|
|
6.8%
|
|
(10.2)%
|
|
5.8%
|
Americas' second quarter 2020 sales of $1,134 million were 42% lower than in the
previous year, driven by lower volume and reduced sales from other
tire-related businesses. These factors were partially offset by
improvements in price/mix. Tire unit volume declined 50%.
Replacement tire shipments decreased 45%, driven by weak industry
demand and the impact of a significant consumer replacement
customer temporarily closing its auto care facilities. Original
equipment unit volume declined 68%, reflecting lower vehicle
production.
Second quarter 2020 operating loss of $287 million was down $421
million from the prior year's quarter. The decline was
driven by reduced factory utilization, reflecting lower sales and
reductions in inventory, and lower unit volume. These factors were
partially offset by lower SAG, driven by reductions in payroll and
advertising expenses.
Europe, Middle East and Africa
|
Second
Quarter
|
|
Six
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
7.3
|
|
13.3
|
|
18.9
|
|
27.6
|
Net Sales
|
$676
|
|
$1,141
|
|
$1,671
|
|
$2,362
|
Segment Operating
Income (Loss)
|
(110)
|
|
44
|
|
(163)
|
|
98
|
Segment Operating
Margin
|
(16.3)%
|
|
3.9%
|
|
(9.8)%
|
|
4.1%
|
Europe, Middle East and Africa's second quarter 2020 sales decreased
41% from last year to $676 million,
primarily attributable to lower volume, partially offset by
improvements in price/mix. Tire unit volume decreased 45%.
Replacement tire shipments fell 37%, driven by decreased industry
demand and the planned impact of the company's initiative to align
distribution in Europe. Original
equipment unit volume decreased 63%, reflecting lower vehicle
production.
Second quarter 2020 segment operating loss of $110 million was down $154
million from the prior year's quarter, driven by lower unit
volume and reduced factory utilization, reflecting lower sales and
reductions in inventory. These factors were partially offset by
lower SAG, driven by reductions in advertising and payroll
expenses, and improved price/mix.
Asia Pacific
|
Second
Quarter
|
|
Six
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
4.6
|
|
7.0
|
|
9.8
|
|
14.0
|
Net Sales
|
$334
|
|
$520
|
|
$722
|
|
$1,021
|
Segment Operating
Income (Loss)
|
(34)
|
|
41
|
|
(28)
|
|
88
|
Segment Operating
Margin
|
(10.2)%
|
|
7.9%
|
|
(3.9)%
|
|
8.6%
|
Asia Pacific's second quarter
2020 sales decreased 36% to $334
million, reflecting lower volume, partially offset by
improvements in price/mix. Tire unit volume declined 36%. Original
equipment unit volume declined 50%, driven by declines in
India and China. Replacement
tire shipments decreased 26%, driven by lower industry demand.
Second quarter 2020 segment operating loss of $34 million was down $75
million from the prior year's quarter. The decline reflects
lower unit volume and reduced factory utilization, reflecting lower
sales and reductions in inventory. These factors were partially
offset by lower SAG, driven by reductions in advertising and
payroll expenses.
Phased Production Restart
The company completed a phased restart of production during the
second quarter. All of the company's factories resumed production
and none have experienced any COVID-19 related disruption following
their restart. Production levels for the quarter were approximately
26 million units below the prior year, reflecting lower sales and
actions taken to reduce inventories and conserve cash. Inventory
units were approximately 8.5 million below the prior year's level
at the end of June.
Production planning for the second half has been modified to
focus on high customer service levels, while ensuring the company
is able to continue to operate at lower inventory levels on an
ongoing basis and to reduce its conversion cost per tire over
time.
Liquidity and Cash Flow
As of June 30, 2020, the company
had total liquidity of $3,944
million, including $1,006
million of cash and cash equivalents. A portion of
this liquidity will be used to repay the company's $282 million outstanding principal amount of
8.75% notes that mature in August. In comparison, the company
had $3,442 million in total
liquidity, including $917 million of
cash and cash equivalents at June 30,
2019.
During the second quarter, the company issued $800 million of senior notes. The company also
benefited from a smaller than planned use of cash during the
quarter, driven by improved working capital management. Cash used
in operations and capital expenditures totaled $259 million and $152
million, respectively. The combined use of $411 million of cash was significantly less than
the company's initial estimates.
Conference Call
Goodyear will hold an investor conference call at 9:00 a.m. EDT today. Prior to the commencement of
the call, the company will post the financial and other related
information that will be presented on its investor relations
website: http://investor.goodyear.com.
Participating in the conference call will be Richard J. Kramer, chairman, chief executive
officer and president; Darren R.
Wells, executive vice president and chief financial officer;
and Christina L. Zamarro, vice
president, finance and treasurer.
Investors, members of the media and other interested persons can
access the conference call on the website or via telephone by
calling either (877) 876-9176 or (785) 424-1670 before 8:50 a.m. EDT and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800)
934-8425 or (402) 220-6995. The replay will also remain available
on the website.
About Goodyear
Goodyear is one of the world's largest tire companies. It
employs about 62,000 people and manufactures its products in 46
facilities in 21 countries around the world. Its two Innovation
Centers in Akron, Ohio, and
Colmar-Berg, Luxembourg, strive to
develop state-of-the-art products and services that set the
technology and performance standard for the industry. For more
information about Goodyear and its products, go to
www.goodyear.com/corporate. GT-FN
Certain information contained in this press release
constitutes forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. There are a variety of factors, many of which are beyond
our control, that affect our operations, performance, business
strategy and results and could cause our actual results and
experience to differ materially from the assumptions, expectations
and objectives expressed in any forward-looking statements. These
factors include, but are not limited to: the impact on us of the
COVID-19 pandemic; our ability to implement successfully our
strategic initiatives; actions and initiatives taken by both
current and potential competitors; increases in the prices paid for
raw materials and energy; a labor strike, work stoppage or other
similar event; foreign currency translation and transaction risks;
deteriorating economic conditions or an inability to access capital
markets; work stoppages, financial difficulties or supply
disruptions at our suppliers or customers; the adequacy of our
capital expenditures; our failure to comply with a material
covenant in our debt obligations; potential adverse consequences of
litigation involving the company; as well as the effects of more
general factors such as changes in general market, economic or
political conditions or in legislation, regulation or public
policy. Additional factors are discussed in our filings with the
Securities and Exchange Commission, including our annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on
Form 8-K. In addition, any forward-looking statements represent our
estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may
elect to update forward-looking statements at some point in the
future, we specifically disclaim any obligation to do so, even if
our estimates change.
(financial statements follow)
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Statements of Operations (unaudited)
|
|
|
Three
Months
Ended
June
30,
|
|
Six
Months
Ended
June
30,
|
(In millions,
except per share amounts)
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
NET
SALES
|
$
2,144
|
$
3,632
|
|
$
5,200
|
$
7,230
|
|
|
|
|
|
|
Cost of Goods
Sold
|
2,216
|
2,855
|
|
4,768
|
5,734
|
Selling,
Administrative and General Expense
|
451
|
586
|
|
1,032
|
1,133
|
Goodwill and Other
Asset Impairments
|
148
|
--
|
|
330
|
--
|
Rationalizations
|
99
|
4
|
|
108
|
107
|
Interest
Expense
|
85
|
88
|
|
158
|
173
|
Other (Income)
Expense
|
34
|
17
|
|
61
|
39
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
(889)
|
82
|
|
(1,257)
|
44
|
United States and
Foreign Tax Expense (Benefit)
|
(186)
|
26
|
|
63
|
32
|
|
|
|
|
|
|
Net Income
(Loss)
|
(703)
|
56
|
|
(1,320)
|
12
|
Less: Minority
Shareholders' Net Income (Loss)
|
(7)
|
2
|
|
(5)
|
19
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
|
$
(696)
|
$
54
|
|
$
(1,315)
|
$
(7)
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(2.97)
|
$
0.23
|
|
$
(5.62)
|
$
(0.03)
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
233
|
|
234
|
232
|
|
|
|
|
|
|
Diluted
|
$
(2.97)
|
$
0.23
|
|
$
(5.62)
|
$
(0.03)
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
234
|
|
234
|
232
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
--
|
$
0.16
|
|
$
0.16
|
$
0.32
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Balance Sheets (unaudited)
|
|
(In millions,
except share data)
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
Assets:
|
|
|
|
Current
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
1,006
|
|
$
908
|
Accounts
Receivable, less Allowance - $143 ($111 in 2019)
|
1,727
|
|
1,941
|
Inventories:
|
|
|
|
Raw Materials
|
594
|
|
530
|
Work in Process
|
128
|
|
143
|
Finished Products
|
1,752
|
|
2,178
|
|
2,474
|
|
2,851
|
Prepaid
Expenses and Other Current Assets
|
206
|
|
234
|
Total Current
Assets
|
5,413
|
|
5,934
|
Goodwill
|
383
|
|
565
|
Intangible
Assets
|
135
|
|
137
|
Deferred Income
Taxes
|
1,434
|
|
1,527
|
Other
Assets
|
794
|
|
959
|
Operating Lease
Right-of-Use Assets
|
869
|
|
855
|
Property, Plant and
Equipment, less Accumulated Depreciation – $10,293 ($10,488 in
2019)
|
6,799
|
|
7,208
|
Total Assets
|
$
15,827
|
|
$
17,185
|
|
|
|
|
Liabilities:
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
Payable – Trade
|
$
1,858
|
|
$
2,908
|
Compensation
and Benefits
|
485
|
|
536
|
Other Current
Liabilities
|
798
|
|
734
|
Notes Payable
and Overdrafts
|
712
|
|
348
|
Operating
Lease Liabilities due Within One Year
|
192
|
|
199
|
Long Term Debt
and Finance Leases due Within One Year
|
581
|
|
562
|
Total Current Liabilities
|
4,626
|
|
5,287
|
Operating Lease
Liabilities
|
698
|
|
668
|
Long Term Debt and
Finance Leases
|
5,688
|
|
4,753
|
Compensation and
Benefits
|
1,273
|
|
1,334
|
Deferred Income
Taxes
|
80
|
|
90
|
Other Long Term
Liabilities
|
449
|
|
508
|
Total Liabilities
|
12,814
|
|
12,640
|
|
|
|
|
Commitments and
Contingent Liabilities
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Common Stock, no par
value:
|
|
|
|
Authorized, 450 million
shares, Outstanding shares – 233 million in 2020 and
2019
|
233
|
|
233
|
Capital
Surplus
|
2,154
|
|
2,141
|
Retained
Earnings
|
4,748
|
|
6,113
|
Accumulated Other
Comprehensive Loss
|
(4,302)
|
|
(4,136)
|
Goodyear Shareholders' Equity
|
2,833
|
|
4,351
|
Minority
Shareholders' Equity – Nonredeemable
|
180
|
|
194
|
Total
Shareholders' Equity
|
3,013
|
|
4,545
|
Total
Liabilities and Shareholders' Equity
|
$
15,827
|
|
$
17,185
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Statements of Cash Flows (unaudited)
|
|
(In
millions)
|
Six Months
Ended
|
|
June
30,
|
|
2020
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
Net Income
(Loss)
|
$
(1,320)
|
$
12
|
Adjustments to
Reconcile Net Income (Loss) to Cash Flows from Operating
Activities:
|
|
|
Depreciation and
Amortization
|
472
|
389
|
Amortization and Write-Off
of Debt Issuance Costs
|
6
|
9
|
Goodwill and Other Asset
Impairments
|
330
|
--
|
Provision for Deferred
Income Taxes
|
58
|
(31)
|
Net Pension Curtailments and
Settlements
|
3
|
--
|
Net Rationalization
Charges
|
108
|
107
|
Rationalization
Payments
|
(101)
|
(33)
|
Net (Gains) Losses on Asset
Sales
|
2
|
(6)
|
Operating Lease
Expense
|
142
|
148
|
Operating Lease
Payments
|
(130)
|
(134)
|
Pension Contributions and
Direct Payments
|
(33)
|
(32)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
Accounts
Receivable
|
36
|
(445)
|
Inventories
|
304
|
(233)
|
Accounts Payable -
Trade
|
(860)
|
(55)
|
Compensation and
Benefits
|
(11)
|
61
|
Other Current
Liabilities
|
29
|
(37)
|
Other Assets and
Liabilities
|
145
|
(11)
|
Total Cash Flows from
Operating Activities
|
(820)
|
(291)
|
Cash Flows from
Investing Activities:
|
|
|
Capital
Expenditures
|
(363)
|
(401)
|
Asset
Dispositions
|
--
|
2
|
Short Term
Securities Acquired
|
(30)
|
(67)
|
Short Term
Securities Redeemed
|
46
|
67
|
Notes
Receivable
|
(35)
|
(7)
|
Other
Transactions
|
(8)
|
(13)
|
Total Cash Flows from
Investing Activities
|
(390)
|
(419)
|
Cash Flows from
Financing Activities:
|
|
|
Short Term
Debt and Overdrafts Incurred
|
928
|
983
|
Short Term
Debt and Overdrafts Paid
|
(521)
|
(908)
|
Long Term Debt
Incurred
|
4,886
|
3,479
|
Long Term Debt
Paid
|
(3,879)
|
(2,628)
|
Common Stock
Issued
|
--
|
1
|
Common Stock
Dividends Paid
|
(37)
|
(74)
|
Transactions
with Minority Interests in Subsidiaries
|
--
|
(25)
|
Debt Related
Costs and Other Transactions
|
(53)
|
(17)
|
Total Cash Flows from
Financing Activities
|
1,324
|
811
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(50)
|
6
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
64
|
107
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of the
Period
|
974
|
873
|
Cash, Cash
Equivalents and Restricted Cash at End of the Period
|
$
1,038
|
$
980
|
Non-GAAP Financial Measures (unaudited)
This earnings release presents Total Segment Operating Income
(Loss) and Margin, Adjusted Net Income (Loss) and Adjusted Diluted
Earnings (Loss) Per Share (EPS), which are important financial
measures for the company but are not financial measures defined by
U.S. GAAP, and should not be construed as alternatives to
corresponding financial measures presented in accordance with U.S.
GAAP.
Total Segment Operating Income (Loss) is the sum of the
individual strategic business units' (SBUs') Segment Operating
Income (Loss) as determined in accordance with U.S. GAAP. Total
Segment Operating Margin is Total Segment Operating Income (Loss)
divided by Net Sales as determined in accordance with U.S. GAAP.
Management believes that Total Segment Operating Income (Loss) and
Margin are useful because they represent the aggregate value of
income created by the company's SBUs and exclude items not directly
related to the SBUs for performance evaluation purposes. The most
directly comparable U.S. GAAP financial measure to Total Segment
Operating Income (Loss) is Goodyear Net Income (Loss) and to Total
Segment Operating Margin is Return on Sales (which is calculated by
dividing Goodyear Net Income (Loss) by Net Sales).
Adjusted Net Income (Loss) is Goodyear Net Income (Loss) as
determined in accordance with U.S. GAAP adjusted for certain
significant items. Adjusted Diluted Earnings (Loss) Per Share is
the company's Adjusted Net Income (Loss) divided by Weighted
Average Shares Outstanding-Diluted as determined in accordance with
U.S. GAAP. Management believes that Adjusted Net Income (Loss) and
Adjusted Diluted Earnings (Loss) Per Share are useful because they
represent how management reviews the operating results of the
company excluding the impacts of rationalizations, asset
write-offs, accelerated depreciation, asset sales and certain other
significant items.
It should be noted that other companies may calculate
similarly-titled non-GAAP financial measures differently and, as a
result, the measures presented herein may not be comparable to such
similarly-titled measures reported by other companies.
See the tables below for reconciliations of historical Total
Segment Operating Income (Loss) and Margin, Adjusted Net Income
(Loss) and Adjusted Diluted Earnings (Loss) Per Share to the most
directly comparable U.S. GAAP financial measures.
Segment Operating
Income (Loss) and Margin Reconciliation Table
|
|
|
Three
Months
Ended
June
30,
|
Six
Months Ended
June
30,
|
(In
millions)
|
2020
|
2019
|
2020
|
2019
|
Total Segment
Operating Income (Loss)
|
$
(431)
|
$
219
|
$
(478)
|
$
409
|
Goodwill and
Other Asset Impairments
|
(148)
|
--
|
(330)
|
--
|
Rationalizations
|
(99)
|
(4)
|
(108)
|
(107)
|
Interest
Expense
|
(85)
|
(88)
|
(158)
|
(173)
|
Other Income
(Expense)
|
(34)
|
(17)
|
(61)
|
(39)
|
Asset
Write-offs and Accelerated Depreciation
|
(86)
|
(1)
|
(90)
|
(1)
|
Corporate
Incentive Compensations Plans
|
(7)
|
(14)
|
(10)
|
(15)
|
Retained
Expenses of Divested Operations
|
(1)
|
(3)
|
(3)
|
(6)
|
Other
|
2
|
(10)
|
(19)
|
(24)
|
Income (Loss)
before Income Taxes
|
$
(889)
|
$
82
|
$(1,257)
|
$
44
|
United States and
Foreign Taxes (Benefit)
|
(186)
|
26
|
63
|
32
|
Less: Minority
Shareholders' Net Income (Loss)
|
(7)
|
2
|
(5)
|
19
|
Goodyear Net
Income (Loss)
|
$
(696)
|
$
54
|
$(1,315)
|
$
(7)
|
|
|
|
|
|
Sales
|
$2,144
|
$3,632
|
$5,200
|
$7,230
|
Return on
Sales
|
(32.5)%
|
1.5%
|
(25.3)%
|
(0.1)%
|
Total Segment
Operating Margin
|
(20.1)%
|
6.0%
|
(9.2)%
|
5.7%
|
Adjusted Net
Income (Loss) and Adjusted Diluted Earnings (Loss) per
Share
|
Reconciliation
Tables
|
|
Second Quarter
2020
|
Income
(Loss)
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
(Loss)
|
Weighted
Average
Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
(889)
|
$
(186)
|
$
(7)
|
$
(696)
|
234
|
$
(2.97)
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
185
|
44
|
|
141
|
|
0.60
|
Impairment of TireHub Investment
|
148
|
35
|
|
113
|
|
0.48
|
Asset Sales
|
3
|
|
|
3
|
|
0.01
|
Discrete Tax Items
|
|
(2)
|
|
2
|
|
0.01
|
|
336
|
77
|
--
|
259
|
|
1.10
|
As
Adjusted
|
$
(553)
|
$
(109)
|
$
(7)
|
$
(437)
|
234
|
$
(1.87)
|
|
|
Second Quarter
2019
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
|
Weighted
Average
Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
82
|
$
26
|
$
2
|
$
54
|
234
|
$
0.23
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
5
|
1
|
|
4
|
|
0.02
|
|
5
|
1
|
--
|
4
|
|
0.02
|
As
Adjusted
|
$
87
|
$
27
|
$
2
|
$
58
|
234
|
$
0.25
|
|
|
First Six Months
2020
|
Income
(Loss) Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
(Loss)
|
Weighted
Average
Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
(1,257)
|
$
63
|
$
(5)
|
$
(1,315)
|
234
|
$
(5.62)
|
Significant
Items:
|
|
|
|
|
|
|
Discrete Tax Items
|
|
(293)
|
|
293
|
|
1.25
|
Goodwill and Other Asset
Impairments
|
330
|
39
|
|
291
|
|
1.24
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
198
|
46
|
|
152
|
|
0.65
|
Asset Sales
|
2
|
|
|
2
|
|
0.01
|
Pension Settlement Charges
|
3
|
1
|
|
2
|
|
0.01
|
|
533
|
(207)
|
--
|
740
|
|
3.16
|
As
Adjusted
|
$
(724)
|
$
(144)
|
$
(5)
|
$
(575)
|
234
|
$
(2.46)
|
|
|
First Six Months
2019
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
(Loss)
|
Weighted
Average
Shares
Outstanding-
Diluted*
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
44
|
$
32
|
$
19
|
$
(7)
|
232
|
$
(0.03)
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
108
|
17
|
|
91
|
|
0.38
|
Indirect Tax Settlements and
Discrete
Tax Items
|
(6)
|
(13)
|
(16)
|
23
|
|
0.10
|
Legal Claims Related to Discontinued
Operations
|
5
|
1
|
|
4
|
|
0.02
|
Insurance Recovery from Hurricanes
|
(3)
|
|
|
(3)
|
|
(0.01)
|
Asset Sales
|
(6)
|
(1)
|
|
(5)
|
|
(0.02)
|
|
98
|
4
|
(16)
|
110
|
|
0.47
|
As
Adjusted
|
$
142
|
$
36
|
$
3
|
$
103
|
234
|
$
0.44
|
|
*Weighted Average
Shares Outstanding-Diluted for the calculation of as-reported
diluted EPS excludes 2 million weighted average shares outstanding
for stock options and other securities that were anti-dilutive due
to Goodyear's net loss.
|
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SOURCE The Goodyear Tire & Rubber Company