AKRON, Ohio, Feb. 9, 2021 /PRNewswire/ -- The Goodyear
Tire & Rubber Company (NASDAQ: GT) today reported results for
the fourth quarter and full year of 2020.
"We delivered strong performance to end a challenging year,"
said Richard J. Kramer, chairman,
chief executive officer and president. "With a determination to win
with our products in the marketplace and a relentless focus on cost
and cash, we finished the year on a high note.
"We have good momentum as we enter 2021. Our commercial business
continues to outperform the industry, our consumer replacement
business is strengthening, and we are beginning to see the benefits
of our robust consumer OE pipeline. I am confident we are
positioned to capitalize on stronger industry fundamentals in
2021," added Kramer.
Goodyear's fourth quarter 2020 sales were $3.7 billion, down 2% from a year ago. The
decline was driven by lower volume and unfavorable foreign currency
translation. These factors were partially offset by improvements in
price/mix.
Tire unit volumes totaled 37.7 million, down 5% 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 7%, reflecting the
impact of lower consumer demand and actions taken to align European
distribution. Original equipment unit volume increased 3%,
reflecting increased market share in Americas and EMEA.
Goodyear's fourth quarter 2020 net income was $63 million (27
cents per share) compared to a net loss of $392 million ($1.68
per share) a year ago. Fourth quarter 2020 adjusted net income was
$103 million (44 cents per share) compared to adjusted net
income of $45 million (19 cents per share) in 2019. Per share amounts
are diluted.
The company reported segment operating income of $302 million in the fourth quarter of 2020, up
$60 million from a year ago. The
increase primarily reflects the benefits of cost saving actions,
including ongoing rationalization plans, lower raw material costs,
a one-time benefit related to a legal settlement and improvements
in price/mix. These factors were partially offset by lower volume
and the impact of reduced factory utilization.
Full-Year Results
Goodyear's 2020 net sales were $12.3
billion, a 16% decline from the 2019 period, reflecting
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 126.0 million, down 19% from 2019.
Industry demand was affected by the economic disruption resulting
from the COVID-19 pandemic, particularly during the first half of
2020. Replacement tire shipments decreased 17%, primarily
reflecting lower industry demand. Original equipment volume
declined 23%, driven by lower global vehicle production.
Goodyear's net loss was $1.3
billion ($5.35 per share)
compared to a net loss of $311
million ($1.33 per share) in
the prior year's period. The 2020 period included several
significant items, including, on a pre-tax basis, 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 $159 million, primarily associated
with the closure of a manufacturing facility in Gadsden, Alabama. Goodyear's 2019 net loss
included discrete tax adjustments of $386
million and pre-tax rationalization charges of $205 million, primarily related to a plan to
modernize two tire manufacturing facilities in Germany and a plan to curtail production of
tires for declining, less profitable segments of the tire market at
our Gadsden, Alabama manufacturing
facility. Full-year 2020 adjusted net loss was $448 million ($1.91
per share) compared to adjusted net income of $253 million ($1.08
cents per share) in the prior year. Per share amounts are
diluted.
The company reported a segment operating loss of $14 million in 2020, down $959 million 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 the benefits of cost saving actions,
including ongoing rationalization plans, and lower SAG, driven by
reduced 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
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
17.5
|
|
18.7
|
|
56.7
|
|
70.4
|
Net Sales
|
$1,926
|
|
$2,026
|
|
$6,556
|
|
$7,922
|
Segment Operating
Income
|
190
|
|
152
|
|
9
|
|
550
|
Segment Operating
Margin
|
9.9%
|
|
7.5%
|
|
0.1%
|
|
6.9%
|
Americas' fourth quarter 2020 sales of $1.9 billion were 5% lower than in the previous
year, driven by lower volume and unfavorable foreign currency
translation. These factors were partially offset by a one-time
benefit related to a legal settlement and improvements in
price/mix. Tire unit volume declined 6%. Replacement tire shipments
decreased 9%, reflecting weak retail demand, particularly in the
mass merchant channel in the U.S. Original equipment unit volume
increased 6%, driven by strong growth in Brazil.
Fourth quarter 2020 operating income of $190 million was up $38
million from the prior year's quarter. The increase was
driven by a one-time benefit related to a legal settlement, the
benefits of cost saving actions and improvements in price/mix.
These factors were partially offset by lower volume, the impact of
reduced factory utilization earlier in the year and the
establishment of an environmental remediation reserve.
Europe, Middle East and Africa
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
12.4
|
|
13.0
|
|
44.5
|
|
55.1
|
Net Sales
|
$1,193
|
|
$1,141
|
|
$4,020
|
|
$4,708
|
Segment Operating
Income (Loss)
|
69
|
|
38
|
|
(72)
|
|
202
|
Segment Operating
Margin
|
5.8%
|
|
3.3%
|
|
(1.8)%
|
|
4.3%
|
Europe, Middle East and Africa's fourth quarter 2020 sales increased
5% from last year to $1.2 billion due
to improvements in price/mix, partially offset by lower volume.
Tire unit volume decreased 5%. Replacement tire shipments fell 11%,
driven by lower industry demand and the impact of the company's
previously announced initiative to align distribution in
Europe. Original equipment unit
volume increased 16%, reflecting share gains driven by the launch
of new fitments.
Fourth quarter 2020 segment operating income of $69 million was up $31
million from the prior year's quarter, driven by the impact
of lower raw material costs, improvements in price/mix and the
benefits of cost saving actions, partially offset by lower volume
and reduced factory utilization.
Asia Pacific
|
Fourth
Quarter
|
|
Twelve
Months
|
(in
millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tire Units
|
7.8
|
|
7.9
|
|
24.8
|
|
29.8
|
Net Sales
|
$537
|
|
$546
|
|
$1,745
|
|
$2,115
|
Segment Operating
Income
|
43
|
|
52
|
|
49
|
|
193
|
Segment Operating
Margin
|
8.0%
|
|
9.5%
|
|
2.8%
|
|
9.1%
|
Asia Pacific's fourth quarter
2020 sales decreased 2% to $537
million, driven by lower volume and unfavorable price/mix,
primarily reflecting the impact of discontinued OE fitments in
China. Tire unit volume declined
2%. Original equipment unit volume declined 13%. Replacement tire
shipments increased 4%, driven by double-digit growth in
China and India.
Fourth quarter 2020 segment operating income of $43 million was down $9
million from the prior year's quarter. In addition to
discontinued OE fitments in China,
lower earnings reflected adverse results in other tire-related
businesses, primarily aviation. These factors were partially offset
by lower raw material costs.
Cash Flow and Liquidity
The company delivered strong cash flow during the fourth
quarter, reflecting the benefit of working capital performance, a
focus on managing costs and improved earnings. Cash generated
through operating activities totaled $1.4
billion, up slightly from strong prior year performance.
Capital expenditures of $160 million
were $49 million lower than in 2019.
Full-year cash flow from operations was $1.1
billion and capital expenditures were $647 million.
As of Dec. 31, 2020, the company
had total liquidity of $5.4 billion,
including $1.5 billion of cash and
cash equivalents compared with total liquidity of $4.5 billion on Dec. 31,
2019.
Conference Call
Goodyear will hold an investor conference call at 9 a.m. EST 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) 876-9173 or (785) 424-1667 before 8:55 a.m. EST and providing the Conference ID
"Goodyear." A taped replay will be available by calling (800)
753-5207 or (402) 220-2156. 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
December
31,
|
|
Twelve
Months
Ended
December
31,
|
(In millions,
except per share amounts)
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
NET
SALES
|
$
3,656
|
$
3,713
|
|
$
12,321
|
$
14,745
|
|
|
|
|
|
|
Cost of Goods
Sold
|
2,794
|
2,903
|
|
10,337
|
11,602
|
Selling,
Administrative and General Expense
|
605
|
618
|
|
2,192
|
2,323
|
Goodwill and Other
Asset Impairments
|
--
|
--
|
|
330
|
--
|
Rationalizations
|
26
|
77
|
|
159
|
205
|
Interest
Expense
|
78
|
79
|
|
324
|
340
|
Other (Income)
Expense
|
26
|
24
|
|
119
|
98
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
127
|
12
|
|
(1,140)
|
177
|
United States and
Foreign Tax Expense
|
60
|
411
|
|
110
|
474
|
|
|
|
|
|
|
Net Income
(Loss)
|
67
|
(399)
|
|
(1,250)
|
(297)
|
Less: Minority
Shareholders' Net Income (Loss)
|
4
|
(7)
|
|
4
|
14
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
|
$
63
|
$
(392)
|
|
$
(1,254)
|
$
(311)
|
|
|
|
|
|
|
Goodyear Net
Income (Loss)
- Per Share of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.27
|
$
(1.68)
|
|
$
(5.35)
|
$
(1.33)
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
235
|
234
|
|
234
|
233
|
|
|
|
|
|
|
Diluted
|
$
0.27
|
$
(1.68)
|
|
$
(5.35)
|
$
(1.33)
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding
|
235
|
234
|
|
234
|
233
|
|
|
|
|
|
|
Cash Dividends
Declared Per Common Share
|
$
--
|
$
0.16
|
|
$
0.16
|
$
0.64
|
|
|
|
|
|
|
The Goodyear Tire
& Rubber Company and Subsidiaries
Consolidated
Balance Sheets (unaudited)
|
|
(In millions,
except share data)
|
December
31,
|
December
31,
|
|
2020
|
2019
|
Assets:
|
|
|
Current
Assets:
|
|
|
Cash and Cash
Equivalents
|
$
1,539
|
$
908
|
Accounts
Receivable, less Allowance - $150 ($111 in 2019)
|
1,691
|
1,941
|
Inventories:
|
|
|
Raw Materials
|
517
|
530
|
Work in Process
|
143
|
143
|
Finished Products
|
1,493
|
2,178
|
|
2,153
|
2,851
|
Prepaid
Expenses and Other Current Assets
|
237
|
234
|
Total Current
Assets
|
5,620
|
5,934
|
Goodwill
|
408
|
565
|
Intangible
Assets
|
135
|
137
|
Deferred Income
Taxes
|
1,467
|
1,527
|
Other
Assets
|
952
|
959
|
Operating Lease
Right-of-Use Assets
|
851
|
855
|
Property, Plant and
Equipment, less Accumulated Depreciation – $10,991 ($10,488 in
2019)
|
7,073
|
7,208
|
Total Assets
|
$
16,506
|
$
17,185
|
|
|
|
Liabilities:
|
|
|
Current
Liabilities:
|
|
|
Accounts
Payable – Trade
|
$
2,945
|
$
2,908
|
Compensation
and Benefits
|
540
|
536
|
Other Current
Liabilities
|
865
|
734
|
Notes Payable
and Overdrafts
|
406
|
348
|
Operating
Lease Liabilities due Within One Year
|
198
|
199
|
Long Term Debt
and Finance Leases due Within One Year
|
152
|
562
|
Total Current Liabilities
|
5,106
|
5,287
|
Operating Lease
Liabilities
|
684
|
668
|
Long Term Debt and
Finance Leases
|
5,432
|
4,753
|
Compensation and
Benefits
|
1,470
|
1,334
|
Deferred Income
Taxes
|
84
|
90
|
Other Long Term
Liabilities
|
471
|
508
|
Total Liabilities
|
13,247
|
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
|
2,171
|
2,141
|
Retained
Earnings
|
4,809
|
6,113
|
Accumulated Other
Comprehensive Loss
|
(4,135)
|
(4,136)
|
Goodyear
Shareholders' Equity
|
3,078
|
4,351
|
Minority
Shareholders' Equity – Nonredeemable
|
181
|
194
|
Total
Shareholders' Equity
|
3,259
|
4,545
|
Total
Liabilities and Shareholders' Equity
|
$
16,506
|
$
17,185
|
The Goodyear Tire
& Rubber Company and Subsidiaries
Consolidated
Statements of Cash Flows (unaudited)
|
|
(In
millions)
|
Twelve Months
Ended
|
|
December
31,
|
|
2020
|
|
2019
|
Cash Flows from
Operating Activities:
|
|
|
|
Net Income
(Loss)
|
$
(1,250)
|
|
$
(297)
|
Adjustments to
Reconcile Net Income (Loss) to Cash Flows from Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
859
|
|
795
|
Amortization and Write-Off
of Debt Issuance Costs
|
11
|
|
15
|
Goodwill and Other Asset
Impairments
|
330
|
|
--
|
Provision for Deferred
Income Taxes
|
23
|
|
323
|
Net Pension Curtailments and
Settlements
|
18
|
|
6
|
Net Rationalization
Charges
|
159
|
|
205
|
Rationalization
Payments
|
(186)
|
|
(59)
|
Net (Gains) Losses on Asset
Sales
|
2
|
|
(16)
|
Operating Lease
Expense
|
286
|
|
292
|
Operating Lease
Payments
|
(268)
|
|
(267)
|
Pension Contributions and
Direct Payments
|
(56)
|
|
(79)
|
Changes in
Operating Assets and Liabilities, Net of Asset Acquisitions and
Dispositions:
|
|
|
|
Accounts
Receivable
|
132
|
|
71
|
Inventories
|
713
|
|
6
|
Accounts Payable –
Trade
|
26
|
|
5
|
Compensation and
Benefits
|
95
|
|
184
|
Other Current
Liabilities
|
26
|
|
(50)
|
Other Assets and
Liabilities
|
195
|
|
73
|
Total Cash Flows from
Operating Activities
|
1,115
|
|
1,207
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
Expenditures
|
(647)
|
|
(770)
|
Asset
Dispositions
|
--
|
|
12
|
Short Term
Securities Acquired
|
(96)
|
|
(113)
|
Short Term
Securities Redeemed
|
96
|
|
106
|
Notes
Receivable
|
(13)
|
|
(7)
|
Other
Transactions
|
(7)
|
|
(28)
|
Total Cash Flows from
Investing Activities
|
(667)
|
|
(800)
|
Cash Flows from
Financing Activities:
|
|
|
|
Short Term
Debt and Overdrafts Incurred
|
1,651
|
|
1,880
|
Short Term
Debt and Overdrafts Paid
|
(1,593)
|
|
(1,933)
|
Long Term Debt
Incurred
|
6,251
|
|
5,942
|
Long Term Debt
Paid
|
(6,059)
|
|
(6,008)
|
Common Stock
Issued
|
--
|
|
1
|
Common Stock
Dividends Paid
|
(37)
|
|
(148)
|
Transactions
with Minority Interests in Subsidiaries
|
(10)
|
|
(26)
|
Debt Related
Costs and Other Transactions
|
--
|
|
(15)
|
Total Cash Flows from
Financing Activities
|
203
|
|
(307)
|
Effect of Exchange
Rate Changes on Cash, Cash Equivalents and Restricted
Cash
|
(1)
|
|
1
|
Net Change in
Cash, Cash Equivalents and Restricted Cash
|
650
|
|
101
|
Cash, Cash
Equivalents and Restricted Cash at Beginning of the
Period
|
974
|
|
873
|
Cash, Cash
Equivalents and Restricted Cash at End of the Period
|
$
1,624
|
|
$
974
|
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
|
Twelve
Months Ended
|
December
31,
|
December
31,
|
(In
millions)
|
2020
|
2019
|
2020
|
2019
|
Total Segment
Operating Income (Loss)
|
$
302
|
$
242
|
$
(14)
|
$
945
|
Goodwill and
Other Asset Impairments
|
--
|
--
|
(330)
|
--
|
Rationalizations
|
(26)
|
(77)
|
(159)
|
(205)
|
Interest
Expense
|
(78)
|
(79)
|
(324)
|
(340)
|
Other Income
(Expense)
|
(26)
|
(24)
|
(119)
|
(98)
|
Asset
Write-offs and Accelerated Depreciation
|
(11)
|
(13)
|
(105)
|
(15)
|
Corporate
Incentive Compensations Plans
|
(20)
|
(22)
|
(44)
|
(50)
|
Retained
Expenses of Divested Operations
|
(3)
|
(3)
|
(8)
|
(10)
|
Other
|
(11)
|
(12)
|
(37)
|
(50)
|
Income (Loss)
before Income Taxes
|
$
127
|
$
12
|
$
(1,140)
|
$
177
|
United States and
Foreign Taxes
|
60
|
411
|
110
|
474
|
Less: Minority
Shareholders' Net Income (Loss)
|
4
|
(7)
|
4
|
14
|
Goodyear Net
Income (Loss)
|
$
63
|
$
(392)
|
$
(1,254)
|
$
(311)
|
|
|
|
|
|
Sales
|
$3,656
|
$3,713
|
$12,321
|
$14,745
|
Return on
Sales
|
1.7%
|
(10.6)%
|
(10.2)%
|
(2.1)%
|
Total Segment
Operating Margin
|
8.3%
|
6.5%
|
(0.1)%
|
6.4%
|
Adjusted Net
Income (Loss) and Adjusted Diluted Earnings (Loss) per
Share
Reconciliation
Tables
|
|
Fourth Quarter
2020
|
Income
Before
Income
Taxes
|
Taxes
|
Minority
Interest
|
Goodyear
Net
Income
|
Weighted
Average
Shares
Outstanding-
Diluted
|
Diluted
EPS
|
(In millions,
except EPS)
|
|
|
|
|
|
|
As
Reported
|
$
127
|
$
60
|
$
4
|
$
63
|
235
|
$
0.27
|
Significant
Items:
|
|
|
|
|
|
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
37
|
5
|
|
32
|
|
0.14
|
Indirect Tax Settlements and
Discrete Tax
Items
|
(6)
|
(28)
|
|
22
|
|
0.09
|
Environmental Remediation Charge
|
13
|
3
|
|
10
|
|
0.04
|
Legal Claims Related to Discontinued
Operations
|
3
|
1
|
|
2
|
|
0.01
|
One-time Legal Settlement
|
(34)
|
(8)
|
|
(26)
|
|
(0.11)
|
|
13
|
(27)
|
--
|
40
|
|
0.17
|
As
Adjusted
|
$
140
|
$
33
|
$
4
|
$
103
|
235
|
$
0.44
|
|
|
Fourth Quarter
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
|
$
12
|
$
411
|
$
(7)
|
$
(392)
|
234
|
$
(1.68)
|
Significant
Items:
|
|
|
|
|
|
|
Indirect Tax Settlements and
Discrete Tax
Items
|
(21)
|
(387)
|
10
|
356
|
|
1.52
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
90
|
20
|
|
70
|
|
0.30
|
Beaumont, Texas Flooding
|
20
|
|
|
20
|
|
0.08
|
Pension Settlements
|
5
|
1
|
|
4
|
|
0.02
|
Gain on Acquisition, Net of
Transactions Costs
|
(2)
|
|
|
(2)
|
|
(0.01)
|
Asset Sales
|
(12)
|
(1)
|
|
(11)
|
|
(0.04)
|
|
80
|
(367)
|
10
|
437
|
|
1.87
|
As
Adjusted
|
$
92
|
$
44
|
$
3
|
$
45
|
235
|
$
0.19
|
|
*Weighted Average
Shares Outstanding-Diluted for the calculation of as-reported
diluted EPS excludes 1 million weighted average equivalent shares
outstanding for stock options and other securities that were
anti-dilutive.
|
|
|
Full Year
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
|
$
(1,140)
|
$
110
|
$
4
|
$
(1,254)
|
234
|
$
(5.35)
|
Significant
Items:
|
|
|
|
|
|
|
Indirect Tax Settlements and
Discrete
Tax Items
|
|
(305)
|
|
305
|
|
1.30
|
Goodwill and Other Asset
Impairments
|
330
|
39
|
|
291
|
|
1.24
|
Rationalizations, Asset Write-offs,
and Accelerated
Depreciation
Charges
|
264
|
56
|
|
208
|
|
0.89
|
Pension Settlements and
Curtailments
|
18
|
4
|
|
14
|
|
0.06
|
Environmental Remediation Charge
|
13
|
3
|
|
10
|
|
0.04
|
Legal Claims Related to Discontinued
Operations
|
3
|
1
|
|
2
|
|
0.01
|
Asset Sales
|
2
|
|
|
2
|
|
0.01
|
One-time Legal Settlement
|
(34)
|
(8)
|
|
(26)
|
|
(0.11)
|
|
596
|
(210)
|
--
|
806
|
|
3.44
|
As
Adjusted
|
$
(544)
|
$
(100)
|
$
4
|
$
(448)
|
234
|
$
(1.91)
|
|
|
Full Year
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
|
$
177
|
$
474
|
$
14
|
$
(311)
|
233
|
$
(1.33)
|
Significant
Items:
|
|
|
|
|
|
|
Indirect Tax Settlements and Discrete
Tax
Items
|
(27)
|
(394)
|
(7)
|
374
|
|
1.59
|
Rationalizations, Asset Write-offs, and
Accelerated Depreciation Charges
|
220
|
42
|
1
|
177
|
|
0.76
|
Beaumont, Texas Flooding
|
25
|
|
|
25
|
|
0.11
|
Pension Settlements
|
5
|
1
|
|
4
|
|
0.02
|
Legal Claims Related to Discontinued
Operations
|
5
|
1
|
|
4
|
|
0.02
|
Net Insurance Recovery from
Hurricanes
|
(4)
|
(1)
|
|
(3)
|
|
(0.01)
|
Gain on Acquisition, Net of
Transaction Costs
|
(2)
|
|
|
(2)
|
|
(0.01)
|
Asset Sales
|
(16)
|
(1)
|
|
(15)
|
|
(0.07)
|
|
206
|
(352)
|
(6)
|
564
|
|
2.41
|
As
Adjusted
|
$
383
|
$
122
|
$
8
|
$
253
|
234
|
$
1.08
|
|
*Weighted Average
Shares Outstanding-Diluted for the calculation of as-reported
diluted EPS excludes 1 million weighted average equivalent shares
outstanding for stock options and other securities that were
anti-dilutive.
|
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SOURCE The Goodyear Tire & Rubber Company