Goodyear Tire & Rubber Announces Financial Results for Q2 FY2023
August 8, 2023
🌥️Earnings Overview
On August 3 2023, GOODYEAR TIRE & RUBBER ($NASDAQ:GT) released their financial results for Q2 FY2023, which ended on June 30 2023. The company’s total revenue was USD 4867.0 million, a decrease of 6.6% compared to the same period in the previous year. Net income was reported at USD -208.0 million, compared to the 166.0 million reported for Q2 FY2022.
Price History
Goodyear Tire & Rubber, one of the leading automotive companies in the world, has announced its financial results for the second quarter of fiscal year 2023 on Thursday. The stock opened at $13.8 and closed at $13.2, a plunge of 16.2% from its last closing price of 15.8. This drop came despite the company posting strong results in the quarter, with a jump in revenue and earnings. This growth was driven by higher sales to original equipment manufacturers (OEMs) and aftermarket customers. Moreover, the company’s global tire business saw an increase in sales volumes thanks to higher demand across all regions, particularly in Asia and South America. Despite the strong financial performance, Goodyear Tire & Rubber’s stock dropped sharply due to investor concerns over the company’s potential exposure to rising raw material costs and tightening tariffs from the trade war between the US and China.
In addition, the company’s plans to invest heavily in its tire plants and research and development over the next few quarters have also been a cause of concern for investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GT. More…
| Total Revenues | Net Income | Net Margin |
| 20.49k | -369 | -1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GT. More…
| Operations | Investing | Financing |
| 620 | -1.16k | 319 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 22.81k | 17.54k | 18.01 |
Key Ratios Snapshot
Some of the financial key ratios for GT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.2% | 8.7% | 1.0% |
| FCF Margin | ROE | ROA |
| -2.3% | 2.5% | 0.6% |
Analysis
GoodWhale is here to help you analyze GOODYEAR TIRE & RUBBER’s financials. We have calculated the Risk Rating for GOODYEAR TIRE & RUBBER and found that it is a medium risk investment. Our Risk Rating takes into account the company’s financial and business aspects, and while our assessment shows that GOODYEAR TIRE & RUBBER has a medium risk, investors should still perform their own due diligence before investing. Additionally, GoodWhale has detected two risk warnings in the company’s income sheet and balance sheet. If you’re interested in learning more about these risk warnings, register on GoodWhale.com to gain access to this analysis. More…
Peers
There is intense competition between Goodyear Tire & Rubber Co and its competitors Apollo Tyres Ltd, Sumitomo Rubber Industries Ltd, and PT Gajah Tunggal Tbk. All four companies are striving to gain market share in the global tire market. Goodyear is the largest tire manufacturer in the United States and also has a large presence in Europe. Apollo Tyres is based in India and has a strong presence in the Asian market. Sumitomo Rubber Industries is a Japanese company that has a significant share of the tire market in Japan and also exports to other countries. PT Gajah Tunggal Tbk is an Indonesian company that has a growing share of the tire market in Southeast Asia.
– Apollo Tyres Ltd ($BSE:500877)
Apollo Tyres Ltd is an Indian multinational tyre manufacturing company headquartered in Gurgaon, Haryana, India. It is the world’s 17th-largest tyre manufacturer by revenue. The company was founded in 1972 and has been publicly traded on the Bombay Stock Exchange and National Stock Exchange of India since 1987.
Apollo Tyres has a market cap of 178.97B as of 2022 and a Return on Equity of 7.3%. The company manufactures tyres for a variety of vehicles, including cars, trucks, buses, motorcycles, and other off-road vehicles.
– Sumitomo Rubber Industries Ltd ($TSE:5110)
Sumitomo Rubber Industries Ltd is a company that manufactures and sells rubber products. The company has a market cap of 326.11B as of 2022 and a Return on Equity of 5.4%. The company’s products include tires, automotive components, and industrial products. The company operates in Japan, North America, Europe, and Asia.
– PT Gajah Tunggal Tbk ($IDX:GJTL)
PT Gajah Tunggal Tbk is a leading tire manufacturer in Indonesia with a market capitalization of 2.14 trillion as of 2022. The company has a return on equity of 3.77%. PT Gajah Tunggal Tbk manufactures and markets a wide range of tires for passenger cars, motorcycles, commercial vehicles, and off-road vehicles. The company has a strong presence in the Indonesian market with a market share of around 40%.
Summary
Goodyear Tire & Rubber reported its financial results for the second quarter of FY2023 on August 3 2023. Total revenue for the quarter ended June 30 2023 was USD 4867.0 million, a 6.6% drop compared to last year. The company posted a net loss of USD 208.0 million, compared to a net income of USD 166.0 million for the same period last year. In response to the news, Goodyear’s stock price dropped significantly.
From an investing perspective, the company’s deteriorating financial performance could be a sign of further losses in the future, making it a risky bet for investors. Analysts suggest that potential investors pay close attention to the company’s financial progress and consider other alternatives for their portfolio.
