AKRON, Ohio, Oct. 30, 2020 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today reported results for
the third quarter and first nine months of 2020.
"Our results reflect increasing momentum as the global tire
industry recovered more quickly than we expected during the
quarter, led by the Americas," said Richard
J. Kramer, chairman, chief executive officer and president.
"We are taking every opportunity to continue building our business
for the long term, while generating significant cost savings and
free cash flow," added Kramer.
Goodyear's third quarter 2020 sales were $3.5 billion, down 9% from a year ago. The
decline was driven by lower volume, unfavorable foreign currency
translation and reduced sales from other tire-related businesses.
These factors were partially offset by improvements in
price/mix.
Tire unit volumes totaled 36.6 million, down 9% from the prior
year's period. Industry demand during the quarter was affected by
the continued economic disruption resulting from the COVID-19
pandemic. Replacement tire shipments declined 9%, reflecting the
impact of lower consumer demand, temporary third-party retail store
closings in the U.S., and actions taken to align European
distribution. Original equipment unit volume decreased 9%, driven
by reduced vehicle production.
Goodyear's third quarter 2020 net loss was $2 million (1 cent
per share) compared to net income of $88
million (38 cents per share) a
year ago. The decrease was driven by a decline in segment operating
income. Third quarter 2020 adjusted net income was $24 million (10
cents per share), compared to adjusted net income of
$105 million (45 cents per share) in 2019. Per share amounts
are diluted.
The company reported segment operating income of $162 million in the third quarter of 2020, down
$132 million from a year ago. The
decline primarily reflects lower volume, reduced factory
utilization and lower earnings from other tire-related businesses.
These factors were partially offset by the benefits of cost saving
actions, including ongoing rationalization plans, and improved
price/mix.
Year-to-Date Results
Goodyear's sales for the first nine months of 2020 were
$8.7 billion, a 21% decline from the
2019 period, driven by lower volume, reduced sales from other
tire-related businesses and unfavorable foreign currency
translation. These factors were partially offset by improvements in
price/mix.
Tire unit volumes totaled 88.3 million, down 24% from 2019.
Replacement tire shipments decreased 21%, primarily reflecting
lower industry demand. Original equipment volume declined 31%,
driven by lower global vehicle production.
Goodyear's net loss was $1.3
billion for the first nine months of 2020 ($5.62 per share) compared to net income of
$81 million (35 cents per share) in the prior year's period.
The first nine months 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 impairment
charge of $148 million to reduce the
carrying value of an equity interest in TireHub, and
rationalization charges of $133
million, primarily associated with the closure of a
manufacturing facility in Gadsden,
Alabama. Goodyear's net income for the comparable period in
2019 included rationalization charges of $128 million, primarily related to a plan to
modernize two tire manufacturing facilities in Germany. Goodyear's adjusted net loss for the
first nine months of 2020 was $550
million ($2.35 per share),
compared to adjusted net income of $208
million (89 cents per share)
in the prior year's period. Per share amounts are diluted.
The company reported a segment operating loss of $316 million for the first nine months of 2020,
down $1.0 billion from a year ago.
The decrease was primarily due to lower volume, reduced factory
utilization and lower earnings from other tire-related businesses.
These factors were partially offset by lower SAG, driven by reduced
payroll and advertising expenses, and the benefits of cost saving
actions, including ongoing rationalization plans.
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
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
16.2
|
|
17.9
|
|
39.2
|
|
51.7
|
Net Sales
|
$1,823
|
|
$2,049
|
|
$4,630
|
|
$5,896
|
Segment Operating
Income (Loss)
|
106
|
|
175
|
|
(181)
|
|
398
|
Segment Operating
Margin
|
5.8%
|
|
8.5%
|
|
(3.9)%
|
|
6.8%
|
Americas' third quarter 2020 sales of $1.8 billion were 11% lower than in the previous
year, driven by lower volume, unfavorable foreign currency
translation and reduced sales from other tire-related businesses.
These factors were partially offset by improvements in price/mix.
Tire unit volume declined 10%. Replacement tire shipments decreased
12%, reflecting weak retail demand and temporary third-party retail
store closings in the U.S. Original equipment unit volume was
essentially flat, as the impact of weak industry demand in
Brazil offset a 7% increase in
U.S. consumer OE shipments.
Third quarter 2020 operating income of $106 million was down $69
million from the prior year's quarter. The decline was
driven by reduced factory utilization and lower volume. These
factors were partially offset by the benefits of cost saving
actions, lower SAG and improved price/mix.
Europe, Middle East and Africa
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
13.2
|
|
14.5
|
|
32.1
|
|
42.1
|
Net Sales
|
$1,156
|
|
$1,205
|
|
$2,827
|
|
$3,567
|
Segment Operating
Income (Loss)
|
22
|
|
66
|
|
(141)
|
|
164
|
Segment Operating
Margin
|
1.9%
|
|
5.5%
|
|
(5.0)%
|
|
4.6%
|
Europe, Middle East and Africa's third quarter 2020 sales decreased 4%
from last year to $1.2 billion due to
lower volume, partially offset by improvements in price/mix. Tire
unit volume decreased 9%. Replacement tire shipments fell 8%,
driven by lower industry demand and the impact of the company's
previously announced initiative to align distribution in
Europe. Original equipment unit
volume decreased 11%, driven by lower vehicle production.
Third quarter 2020 segment operating income of $22 million was down $44
million from the prior year's quarter, driven by the impact
of lower volume, including reduced factory utilization, partially
offset by lower raw material costs and improved price/mix.
Asia Pacific
|
Third
Quarter
|
|
Nine
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
7.2
|
|
7.9
|
|
17.0
|
|
21.9
|
Net Sales
|
$486
|
|
$548
|
|
$1,208
|
|
$1,569
|
Segment Operating
Income
|
34
|
|
53
|
|
6
|
|
141
|
Segment Operating
Margin
|
7.0%
|
|
9.7%
|
|
0.5%
|
|
9.0%
|
Asia Pacific's third quarter
2020 sales decreased 11% to $486
million, driven by lower volume. Tire unit volume declined
9%. Original equipment unit volume declined 16%, driven by
China and India. Replacement tire shipments decreased
4%, driven by lower industry demand in Japan. In China, consumer replacement volume set a new
record, increasing 19% over the prior year.
Third quarter 2020 segment operating income of $34 million was down $19
million from the prior year's quarter. The decline primarily
reflects lower unit volume, unfavorable price/mix and reduced
factory utilization. These factors were partially offset by lower
raw material costs and lower SAG.
Cash Flow and Liquidity
The company delivered strong cash flow during the third quarter,
as it benefited from improved working capital and
stronger-than-planned industry demand. Cash generated through
operating activities totaled $581
million and capital expenditures of $124 million were down from $160 million in 2019. In August, the company
repaid its $282 million 8.75% senior
notes at maturity.
As of Sept. 30, 2020, the company
had total liquidity of $4.2 billion,
including $1.1 billion of cash and
cash equivalents. In comparison, the company had $3.9 billion and $3.4
billion in total liquidity at June
30, 2020, and Sept. 30, 2019,
respectively.
Conference Call
Goodyear will hold an investor conference call at 9:15 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 (800) 895-3361 or (785) 424-1062 before 9:05 a.m. EDT and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800)
926-1902 or (402) 220-5398. 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
|
|
Nine
Months
Ended
|
|
September
30,
|
|
September
30,
|
(In millions,
except per share amounts)
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
NET
SALES
|
$
3,465
|
$
3,802
|
|
$
8,665
|
$
11,032
|
|
|
|
|
|
|
Cost of Goods
Sold
|
2,775
|
2,965
|
|
7,543
|
8,699
|
Selling,
Administrative and General Expense
|
555
|
572
|
|
1,587
|
1,705
|
Goodwill and Other
Asset Impairments
|
--
|
--
|
|
330
|
--
|
Rationalizations
|
25
|
21
|
|
133
|
128
|
Interest
Expense
|
88
|
88
|
|
246
|
261
|
Other (Income)
Expense
|
32
|
35
|
|
93
|
74
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
(10)
|
121
|
|
(1,267)
|
165
|
United States and
Foreign Tax Expense (Benefit)
|
(13)
|
31
|
|
50
|
63
|
|
|
|
|
|
|
Net Income
(Loss)
|
3
|
90
|
|
(1,317)
|
102
|
Less: Minority
Shareholders' Net Income
|
5
|
2
|
|
--
|
21
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
|
$
(2)
|
$
88
|
|
$
(1,317)
|
$
81
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
(0.01)
|
$
0.38
|
|
$
(5.62)
|
$
0.35
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
233
|
|
234
|
233
|
|
|
|
|
|
|
Diluted
|
$
(0.01)
|
$
0.38
|
|
$
(5.62)
|
$
0.35
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
234
|
234
|
|
234
|
234
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
--
|
$
0.16
|
|
$
0.16
|
$
0.48
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Balance Sheets (unaudited)
|
|
(In millions,
except share data)
|
September
30,
|
December
31,
|
|
2020
|
2019
|
Assets:
|
|
|
Current
Assets:
|
|
|
Cash and Cash
Equivalents
|
$
1,057
|
$
908
|
Accounts
Receivable, less Allowance - $149 ($111 in 2019)
|
2,251
|
1,941
|
Inventories:
|
|
|
Raw Materials
|
479
|
530
|
Work in Process
|
132
|
143
|
Finished Products
|
1,541
|
2,178
|
|
2,152
|
2,851
|
Prepaid
Expenses and Other Current Assets
|
235
|
234
|
Total Current
Assets
|
5,695
|
5,934
|
Goodwill
|
393
|
565
|
Intangible
Assets
|
135
|
137
|
Deferred Income
Taxes
|
1,472
|
1,527
|
Other
Assets
|
805
|
959
|
Operating Lease
Right-of-Use Assets
|
852
|
855
|
Property, Plant and
Equipment, less Accumulated Depreciation – $10,576 ($10,488 in
2019)
|
6,840
|
7,208
|
Total Assets
|
$
16,192
|
$
17,185
|
|
|
|
Liabilities:
|
|
|
Current
Liabilities:
|
|
|
Accounts
Payable – Trade
|
$
2,330
|
$
2,908
|
Compensation
and Benefits
|
554
|
536
|
Other Current
Liabilities
|
873
|
734
|
Notes Payable
and Overdrafts
|
529
|
348
|
Operating
Lease Liabilities due Within One Year
|
196
|
199
|
Long Term Debt
and Finance Leases due Within One Year
|
411
|
562
|
Total Current Liabilities
|
4,893
|
5,287
|
Operating Lease
Liabilities
|
685
|
668
|
Long Term Debt and
Finance Leases
|
5,708
|
4,753
|
Compensation and
Benefits
|
1,319
|
1,334
|
Deferred Income
Taxes
|
80
|
90
|
Other Long Term
Liabilities
|
468
|
508
|
Total Liabilities
|
13,153
|
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
|
2,163
|
2,141
|
Retained
Earnings
|
4,746
|
6,113
|
Accumulated Other
Comprehensive Loss
|
(4,282)
|
(4,136)
|
Goodyear
Shareholders' Equity
|
2,860
|
4,351
|
Minority
Shareholders' Equity – Nonredeemable
|
179
|
194
|
Total
Shareholders' Equity
|
3,039
|
4,545
|
Total
Liabilities and Shareholders' Equity
|
$
16,192
|
$
17,185
|
The Goodyear Tire
& Rubber Company and Subsidiaries
|
Consolidated
Statements of Cash Flows (unaudited)
|
|
(In
millions)
|
Nine Months
Ended
|
|
September
30,
|
|
2020
|
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
Net Income
(Loss)
|
$
(1,317)
|
|
$
102
|
Adjustments to
Reconcile Net Income (Loss) to Cash Flows from Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
665
|
|
584
|
Amortization and Write-Off
of Debt Issuance Costs
|
9
|
|
12
|
Goodwill and Other Asset
Impairments
|
330
|
|
--
|
Provision for Deferred
Income Taxes
|
10
|
|
(33)
|
Net Pension Curtailments and
Settlements
|
19
|
|
1
|
Net Rationalization
Charges
|
133
|
|
128
|
Rationalization
Payments
|
(144)
|
|
(46)
|
Net (Gains) Losses on Asset
Sales
|
2
|
|
(5)
|
Operating Lease
Expense
|
217
|
|
221
|
Operating Lease
Payments
|
(193)
|
|
(201)
|
Pension Contributions and
Direct Payments
|
(40)
|
|
(51)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
|
Accounts
Receivable
|
(502)
|
|
(785)
|
Inventories
|
655
|
|
(166)
|
Accounts Payable -
Trade
|
(425)
|
|
(110)
|
Compensation and
Benefits
|
95
|
|
129
|
Other Current
Liabilities
|
75
|
|
16
|
Other Assets and
Liabilities
|
172
|
|
65
|
Total Cash Flows from
Operating Activities
|
(239)
|
|
(139)
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
Expenditures
|
(487)
|
|
(561)
|
Asset
Dispositions
|
--
|
|
2
|
Short Term
Securities Acquired
|
(56)
|
|
(73)
|
Short Term
Securities Redeemed
|
71
|
|
67
|
Notes
Receivable
|
(35)
|
|
(7)
|
Other
Transactions
|
(8)
|
|
(12)
|
Total Cash Flows from
Investing Activities
|
(515)
|
|
(584)
|
Cash Flows from
Financing Activities:
|
|
|
|
Short Term
Debt and Overdrafts Incurred
|
1,555
|
|
1,451
|
Short Term
Debt and Overdrafts Paid
|
(1,339)
|
|
(1,357)
|
Long Term Debt
Incurred
|
5,942
|
|
4,797
|
Long Term Debt
Paid
|
(5,149)
|
|
(3,941)
|
Common Stock
Issued
|
--
|
|
1
|
Common Stock
Dividends Paid
|
(37)
|
|
(111)
|
Transactions
with Minority Interests in Subsidiaries
|
(3)
|
|
(26)
|
Debt Related
Costs and Other Transactions
|
(14)
|
|
(25)
|
Total Cash Flows from
Financing Activities
|
955
|
|
789
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(46)
|
|
(13)
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
155
|
|
53
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of the
Period
|
974
|
|
873
|
Cash, Cash
Equivalents and Restricted Cash at End of the Period
|
$
1,129
|
|
$
926
|
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 (loss) 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 non-cash impairment charges,
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
|
Nine Months Ended
|
September
30,
|
September
30,
|
(In
millions)
|
2020
|
2019
|
2020
|
2019
|
Total Segment
Operating Income (Loss)
|
$
162
|
$
294
|
$
(316)
|
$
703
|
Goodwill and
Other Asset Impairments
|
--
|
--
|
(330)
|
--
|
Rationalizations
|
(25)
|
(21)
|
(133)
|
(128)
|
Interest
Expense
|
(88)
|
(88)
|
(246)
|
(261)
|
Other Income
(Expense)
|
(32)
|
(35)
|
(93)
|
(74)
|
Asset
Write-offs and Accelerated Depreciation
|
(4)
|
(1)
|
(94)
|
(2)
|
Corporate
Incentive Compensations Plans
|
(14)
|
(13)
|
(24)
|
(28)
|
Retained
Expenses of Divested Operations
|
(2)
|
(1)
|
(5)
|
(7)
|
Other
|
(7)
|
(14)
|
(26)
|
(38)
|
Income (Loss)
before Income Taxes
|
$
(10)
|
$
121
|
$
(1,267)
|
$
165
|
United States and
Foreign Taxes (Benefit)
|
(13)
|
31
|
50
|
63
|
Less: Minority
Shareholders' Net Income
|
5
|
2
|
--
|
21
|
Goodyear Net
Income (Loss)
|
$
(2)
|
$
88
|
$
(1,317)
|
$
81
|
|
|
|
|
|
Sales
|
$3,465
|
$3,802
|
$8,665
|
$11,032
|
Return on
Sales
|
(0.1)%
|
2.3%
|
(15.2)%
|
0.7%
|
Total Segment
Operating Margin
|
4.7%
|
7.7%
|
(3.6)%
|
6.4%
|
Adjusted Net
Income (Loss) and Adjusted Diluted Earnings (Loss) per
Share
|
Reconciliation
Tables
|
|
Third 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
|
$
(10)
|
$
(13)
|
$
5
|
$
(2)
|
234
|
$
(0.01)
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
29
|
6
|
|
23
|
|
0.10
|
Pension Settlement Charges
|
16
|
4
|
|
12
|
|
0.05
|
Indirect Tax Settlements and
Discrete Tax
Items
|
6
|
15
|
|
(9)
|
|
(0.04)
|
|
51
|
25
|
--
|
26
|
|
0.11
|
As
Adjusted
|
$
41
|
$
12
|
$
5
|
$
24
|
234
|
$
0.10
|
|
Third 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
|
$
121
|
$
31
|
$
2
|
$
88
|
234
|
$
0.38
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
21
|
3
|
|
18
|
|
0.07
|
Beaumont, Texas Flood Effect
|
6
|
1
|
|
5
|
|
0.02
|
Indirect Tax Settlements and
Discrete Tax
Items
|
(1)
|
5
|
|
(6)
|
|
(0.02)
|
|
26
|
9
|
--
|
17
|
|
0.07
|
As
Adjusted
|
$
147
|
$
40
|
$
2
|
$
105
|
234
|
$
0.45
|
|
First Nine 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
|
$
(1,267)
|
$
50
|
$
--
|
$
(1,317)
|
234
|
$
(5.62)
|
Significant
Items:
|
|
|
|
|
|
|
Goodwill and Other Asset
Impairments
|
330
|
39
|
|
291
|
|
1.24
|
Indirect Tax Settlements and
Discrete
Tax Items
|
6
|
(277)
|
(1)
|
284
|
|
1.21
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
227
|
51
|
|
176
|
|
0.75
|
Pension Settlement Charges
|
19
|
5
|
|
14
|
|
0.06
|
Asset Sales
|
2
|
|
|
2
|
|
0.01
|
|
584
|
(182)
|
(1)
|
767
|
|
3.27
|
As
Adjusted
|
$
(683)
|
$
(132)
|
$
(1)
|
$
(550)
|
234
|
$
(2.35)
|
|
First Nine Months
2019
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
|
Weighted
Average
Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
165
|
$
63
|
$
21
|
$
81
|
234
|
$
0.35
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
130
|
21
|
1
|
108
|
|
0.45
|
Indirect Tax Settlements and
Discrete
Tax Items
|
(6)
|
(8)
|
(16)
|
18
|
|
0.08
|
Beaumont, Texas Flood Effect
|
6
|
1
|
|
5
|
|
0.02
|
Legal Claims Related to Discontinued
Operations
|
5
|
1
|
|
4
|
|
0.02
|
Net Insurance Recovery from
Hurricanes
|
(4)
|
(1)
|
|
(3)
|
|
(0.01)
|
Asset Sales
|
(5)
|
|
|
(5)
|
|
(0.02)
|
|
126
|
14
|
(15)
|
127
|
|
0.54
|
As
Adjusted
|
$
291
|
$
77
|
$
6
|
$
208
|
234
|
$
0.89
|
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SOURCE The Goodyear Tire & Rubber Company