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Goodyear Tire & Rubber Q1 Results Significantly Affected By COVID-19

The Goodyear Tire & Rubber Company (GT) said the company's first quarter results were greatly affected by the economic disruption associated with COVID-19. First quarter sales were approximately $3.0 billion, down from $3.6 billion, a year ago. Tire unit volume totaled approximately 31 million, down 18% from the prior year.

For the first quarter, the company expects to report a loss before income taxes of $185 million to $195 million. Adjusted loss before income taxes is anticipated to be in a range of $175 million to $185 million.

The Goodyear Tire & Rubber Company currently expects 2020 capital expenditures to be no more than $700 million. The company is also evaluating opportunities to accelerate restructuring actions. The company will temporarily suspend its quarterly dividend, which will preserve approximately $37 million of cash on a quarterly basis. In addition, the company refinanced its $2.0 billion asset-based revolving credit facility, extending the maturity to 2025.

The company plans a phased restart of production during the second quarter, beginning in April with some of its commercial truck tire facilities in the U.S. and Europe.

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