Goodyear reports declining sales and profits for the third quarter

Goodyear's operating profit fell 44.5% in the third quarter of 2020 amid an 8.9% decline in sales, but the company emphasizes that the rate of decline has slowed significantly.

"Our results reflect the growing momentum as the global tire industry recovered faster than we expected during the quarter, especially on the back of positive performance in the Americas," said Goodyear Chairman, President and CEO Richard Kramer. We are seizing every opportunity to continue to grow our business in the long term, while providing significant savings and free cash flow. "

Goodyear attributed the decline in quarterly profit to $ 162 million to the negative impact of lower production volumes, lower production utilization at factories and lower revenues from other tire-related businesses. As a result, the company's net profit was $ -2 million, which is in sharp contrast to last year's results of $ 88 million.

Sales fell to $3.47 billion, while tire replacement and OE tire shipments fell 9%, reflecting lower consumer demand, temporary closings of US retail stores and other factors.

The rate of return for the quarter fell 3% to 4.7%.

Goodyear's operating income in the Americas plummeted 39.4% to $106 million and sales revenue fell 11% to $1.82 billion.

Unit sales were down 10%, with replacement market shipments down 12%, reflecting weak retail demand and temporary US store closures. OE shipments in the United States remained flat.

For the three quarters of 2020, Goodyear reported an operating loss of $316 million on the back of a 21.5% decline in sales to $8.67 billion. The company's net losses from January to September amounted to $1.32 billion. In the OE segment, sales fell 31%, and in the replacement segment - 21%.

Sales in the Americas were down 21.4% in the nine months of the year to $4.63 billion, while operating income was $181 million.