NASDAQ$GT
Goodyear Tire & Rubber Co · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Goodyear's first quarter results were significantly impacted by the COVID-19 pandemic, with sales declining by 15% and a net loss of $619 million.
Goodyear reported a challenging first quarter in 2020, with sales down 15% to $3.1 billion due to the impact of the COVID-19 pandemic. The company reported a net loss of $619 million, or $2.65 per share, compared to a net loss of $61 million, or $0.26 per share, in the prior year. The company is taking actions to reduce costs and preserve cash, including temporarily closing manufacturing facilities and reducing payroll costs.
- First quarter results were significantly affected by the sharp declines in demand due to the COVID-19 pandemic.
- Cash and available liquidity of $3.6 billion following successful U.S. credit facility refinancing.
- Global manufacturing facilities are resuming production during late April / early May.
- Industry conditions are continuing to improve in China.
Headline financials
Revenue & EPS history
Goodyear · Revenue · Quarterly
$3.06B
Revenue by segment
Goodyear · $3.06B total across 3 segments · Q1 2020
- Americas$1.67B-10.8%54.7%
- EMEA$995M-18.5%32.6%
- Asia Pacific$388M-22.6%12.7%
Forward guidance
Goodyear is taking actions to reduce operating costs and capital expenditures in response to the COVID-19 pandemic. The company expects 2020 capital expenditures to be no more than $700 million.
Tailwinds
- Phased restart of production during the second quarter, which began earlier this month with some of its commercial truck tire facilities in the U.S. and Europe.
- The company expects the majority of its manufacturing facilities to resume operations by the end of May.
- The company’s plant in Pulandian, China is operating with 100% of its workforce, but is not yet operating at full capacity and is expected to continue ramping up production during the second quarter.
- Implementing new protocols covering employee screening and other protective measures recommended by the Centers for Disease Control and Prevention to ensure the safety and well-being of its associates as operations gradually resume.
- Credit Facility Refinancing On April 9, 2020, the company refinanced its $2.0 billion asset-based revolving credit facility.
Headwinds
- The company has temporarily suspended its quarterly dividend in light of the increased uncertainty resulting from the COVID-19 pandemic.
- First quarter results were significantly affected by the sharp declines in demand due to the COVID-19 pandemic.
- Most of the company’s manufacturing facilities in the Americas and Europe, as well as several of its tire plants in Asia, were closed to protect the safety and well-being of its associates and conserve cash.
- The company expects the closure will result in approximately $130 million of annual savings in 2021 when compared with 2019.
- The decline reflects lower volume and reduced price/mix, partially offset by favorable raw material costs.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
-2.1%
Avg return
Earnings day
-2.9%
Avg return
5 days after
-2.9%
Avg return
30 days after
44%
30 / 68 earnings
Positive
+17.3%
Q4 2024
Best reaction
-26.3%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -6.2% | -19.7% | -21.8% | |
| Q4 2025 | -13.5% | -10.3% | -32.8% | |
| Q3 2025 | +7.8% | +9.9% | +22.9% | |
| Q1 2025 | -0.8% | +2.5% | -3.4% | |
| Q4 2024 | +17.3% | +30.1% | +12.0% | |
| Q3 2024 | +12.3% | +21.5% | +31.5% | |
| Q2 2024 | -15.1% | -28.0% | -23.9% | |
| Q1 2024 | +1.5% | +5.9% | -0.6% | |
| Q4 2023 | -13.9% | -8.5% | -6.6% | |
| Q3 2023 | +2.5% | +2.2% | +12.1% | |
| Q2 2023 | -17.5% | -21.8% | -16.4% | |
| Q1 2023 | +4.7% | +6.4% | +23.1% | |
| Q4 2022 | -6.8% | -0.1% | -1.9% | |
| Q3 2022 | -13.7% | -18.4% | -10.4% | |
| Q2 2022 | +8.2% | +11.2% | +8.0% | |
| Q1 2022 | -16.4% | -17.2% | -2.8% | |
| Q4 2021 | -26.3% | -24.3% | -40.1% | |
| Q3 2021 | +7.6% | +7.6% | -2.3% | |
| Q2 2021 | +7.2% | +11.5% | +6.9% | |
| Q1 2021 | +0.0% | +8.4% | +11.8% | |
| Q4 2020 | +9.9% | +10.5% | +41.2% | |
| Q3 2020 | -13.1% | -11.0% | +10.3% | |
| Q2 2020 | -9.4% | -4.4% | +1.5% | |
| Q1 2020 | -17.7% | -23.8% | -5.6% | |
| Q4 2019 | -10.2% | -15.8% | -51.6% | |
| Q3 2019 | +10.8% | +8.6% | +5.4% | |
| Q2 2019 | -7.5% | -8.2% | -24.4% | |
| Q1 2019 | -1.9% | -5.4% | -25.2% | |
| Q4 2018 | -9.2% | -9.3% | -14.2% | |
| Q3 2018 | +2.3% | +2.4% | +9.6% | |
| Q2 2018 | +14.0% | +13.0% | +11.5% | |
| Q1 2018 | -5.5% | -6.6% | -6.3% | |
| Q4 2017 | -10.4% | -12.3% | -14.1% | |
| Q3 2017 | -7.5% | -10.2% | -8.9% | |
| Q2 2017 | -11.4% | -11.7% | -15.5% | |
| Q1 2017 | +0.5% | -0.8% | -8.0% | |
| Q4 2016 | +3.1% | +10.8% | +10.0% | |
| Q3 2016 | -6.6% | -10.2% | +0.3% | |
| Q2 2016 | +3.0% | +3.1% | +3.9% | |
| Q1 2016 | -8.8% | — | — | |
| Q4 2015 | +8.5% | — | — | |
| Q3 2015 | -1.7% | — | — | |
| Q2 2015 | +0.6% | — | — | |
| Q1 2015 | +4.2% | — | — | |
| Q4 2014 | +5.7% | — | — | |
| Q3 2014 | +7.4% | — | — | |
| Q2 2014 | -8.9% | — | — | |
| Q1 2014 | -7.4% | — | — | |
| Q4 2013 | +10.7% | — | — | |
| Q3 2013 | -2.9% | — | — | |
| Q2 2013 | +8.6% | — | — | |
| Q1 2013 | -2.9% | — | — | |
| Q4 2012 | +1.2% | — | — | |
| Q3 2012 | -7.2% | — | — | |
| Q2 2012 | +11.0% | — | — | |
| Q4 2011 | -8.0% | — | — | |
| Q1 2012 | -5.0% | — | — | |
| Q3 2011 | +1.4% | — | — | |
| Q2 2011 | -5.8% | — | — | |
| Q1 2010 | +9.6% | — | — | |
| Q1 2011 | +1.8% | — | — | |
| Q4 2008 | +14.3% | — | — | |
| Q4 2010 | +14.3% | — | — | |
| Q3 2010 | -12.0% | — | — | |
| Q3 2009 | -12.0% | — | — | |
| Q2 2009 | -10.7% | — | — | |
| Q2 2010 | -10.7% | — | — | |
| Q4 2009 | -10.7% | — | — |
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