Shares of Goodyear Tire & Rubber Co. (GT, -0.56%) saw a slight increase during after-hours trading on Monday following the release of its third-quarter earnings report. While the results were mixed, the company reported a decline in raw-materials costs, which positively impacted its bottom line.
Financial Overview
In the third quarter, Goodyear incurred a loss of $89 million, or 31 cents per share, as opposed to earnings of $44 million, or 16 cents per share, in the same period last year. However, after adjusting for one-time items, the company’s earnings per share came in at 36 cents.
The company’s sales for the quarter dropped to $5.14 billion from $5.31 billion a year ago. Analysts surveyed by FactSet had expected adjusted earnings of 19 cents per share on sales of $5.3 billion.
Positive Developments
Despite the mixed results, Goodyear executives expressed optimism in their letter to shareholders. They noted that this quarter marked the first time in two years where the benefits of price/mix versus raw materials have surpassed inflation. Additionally, there were indications of improving volume in several markets, including the U.S., suggesting an end to the destocking that began in late 2022. The company also highlighted the strong demand for travel in the U.S., with vehicle miles traveled being more than 2% higher than last year.
Reorganization Plan Update
Goodyear also provided an update on its reorganization plan, announcing that it will share further details with Wall Street on November 15th. The company initially unveiled this plan in September and looks forward to updating stakeholders on its progress.
In conclusion, despite the mixed performance in the third quarter, Goodyear Tire & Rubber Co. remains optimistic about the future. The company’s focus on managing raw-materials costs and its plans for reorganization indicate a commitment to driving growth and enhancing shareholder value.
