Business
Goodyear Reports First Quarter 2020 Results
-- First quarter results significantly affected by COVID-19 pandemic -- Cash and available liquidity of $3.6 billion following successful U.S. credit facility
About this update from The Goodyear Tire & Rubber Company
[{"type":"text","content":"-- First quarter results significantly affected by COVID-19 pandemic\n -- Cash and available liquidity of $3.6 billion following successful U.S. credit facility refinancing\n -- Favorable trend in price versus raw material costs continues\n -- Global manufacturing facilities resuming production during late April / early May\n -- Industry conditions continue improving in China\n\n\nAKRON, Ohio, April 30, 2020 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) today reported results for the first quarter of 2020.\n\n \n \n \n \n \n \n\n \n\"Our first quarter results were affected significantly by the sharp declines in demand in the wake of the COVID-19 pandemic,\" said Richard J. Kramer, chairman, chief executive officer and president. \"We are taking necessary measures to ensure the health and safety of our associates and to safeguard our business, while continuing to serve our customers and support essential services,\" he added.\n\"While this unprecedented crisis continues to disrupt our business and the broader automotive industry, I am confident we will emerge from this crisis in a strong position,\" said Kramer. \"We have taken swift actions to aggressively reduce expenses and investment levels, while at the same time continuing to focus on our strategic priorities. I would like to thank all of our associates for their hard work and dedication during this challenging period to ensure we are well positioned when the economy recovers,\" added Kramer. \nGoodyear's first quarter 2020 sales were $3.1 billion, down 15% from a year ago. The decline was driven by lower industry volume, which was significantly impacted by the COVID-19 pandemic, and unfavorable foreign currency translation. These factors were partially offset by improvements in price/mix.\nTire unit volumes totaled 31.3 million, down 18% from the prior year's period. Replacement tire shipments declined 16%, driven by a severe contraction in industry demand following shelter-in-place mandates and sharp declines in consumer confidence. Original equipment unit volume decreased 21%, driven by declines in OE demand after global auto manufacturers suspended vehicle production in response to the rapid spread of COVID-19. \nGoodyear's first quarter 2020 net loss was $619 million ($2.65 per share) compared to a net loss of $61 million (26 cents per share) a year a...