New Goodyear CEO discusses path forward after company reports loss, lower unit sales
New Goodyear Tire & Rubber Co. CEO and President Mark Stewart told investors Tuesday that he's committed to improving all aspects of the company's performance.
Stewart, just two weeks on the job after succeeding Richard Kramer (who retired last month), made his conference-call debut with investors to discuss the the Akron company's fourth-quarter results released Monday.
"You can expect me to focus heavily on Goodyear's manufacturing operations and distribution, understanding it on every level, and working with the team to enhance capability and cost-effectiveness," Stewart told investors.
On Monday, Goodyear announced a $181 million annual loss, compared to $291 million in 2022 and net income of $104 million in 2021.
Sales for the year were $5.116 billion in 2023, down from $5.374 billion in 2022.
Goodyear moving forward, Stewart says
In his comments to investors, Stewart drew attention to the company's Goodyear Forward program announced in November. The effort is designed to streamline the company's portfolio, and includes the potential sale of its Dunlop, chemical and off-road assets.
The company said tire volume volume in it Americas territory, which includes the U.S. and Canada, was down 2.3 million units, or 8.8% below fourth quarter 2022 levels. The company said replacement and original equipment (OE) unit sales were both down more than 8%.
Goodyear attributed the lower unit OE sales in the Americas in part to United Autoworkers strikes and weak trucking industry conditions in the fourth quarter.
Goodyear's Stewart: 'It's about speed of execution'
Stewart, who started his position on Jan. 29, had been COO of Stellantis' North America operations. Stellantis is a Netherlands auto manufacturer that includes the former Chrysler brand.
Goodyear performed an operational review after Elliott Investment Management, one of its largest shareholders, released a presentation in May calling for an overhaul of Goodyear's oversight to improve stock performance. In July, the company added three new directors to its board at Elliott's urging.
Goodyear Forward is designed, according to company literature, to enhance shareholder value and includes about $1 billion in cost reductions by the end of next year. Those reductions are currently underway, the company said in its fourth-quarter report.
In September, the company announced it would cut about 1,200 jobs overseas. Closer to home, it recently eliminated 50 jobs in Akron.
Stewart said at Tuesday's conference call that the company intends to move quickly to accomplish Goodyear Forward goals.
"It's about speed of execution, about delivering that Goodyear Forward program," he said.
Goodyear shares were trading at $11.41 as of 3 p.m. Tuesday, down about 16.3% from the day's open.
Leave a message for Alan Ashworth at 330-996-3859 or email him at aashworth@gannett.com. Follow him on Twitter at @newsalanbeaconj.
This article originally appeared on Akron Beacon Journal: Goodyear moving to enhance shareholder value, CEO says in conference call
