GT - Earnings call 3 2023 | The Goodyear Tire & Rubber Company

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Operator

Good morning. My name is Nicky, and I will be your conference operator today. At this time, I would like to welcome everyone to Goodyear's Third Quarter 2023 Earnings Call. [Operator Instructions] Today on the call, we have Rich Kramer, Goodyear's Chairman and Chief Executive Officer; and Christina Zamarro, Chief Financial Officer.

During this call, Goodyear will refer to forward-looking statements and non-GAAP financial measures.

assumptions materially that from risks, results cause involve differ to those statements and could uncertainties actual Forward-looking forward-looking statements.

be investor financial discussed on please also will website available. reconciliation where important SEC, measures be which information affect Chairman at letter the that and third investor.goodyear.com, non-GAAP more GAAP call the be with included may factors investor now significant For the filings that quarter future and today's XXXX of results, is this call Kramer, the comparable on of section found A to to refer letter. I a call also the Rich disclosures the turn CEO. can replay their over to measures of Goodyear's most in will could on their the

Richard Krawmer

now, you, for operating everyone, we'll Nicky. today. results of XX, on the also an and morning, our the announcement call coming an out again QX Wednesday, update and be you've you Good our Thank results and review. seen that joining next strategic Great. thanks with investor with covering letter November By

hold when Now questions review say with we're happy you quarter this to to related mind, more. we'll week morning be but that able until ask that questions next on the I'd take in the any to

So Nicky, take that, with for the thank that. And you first let's go question. and ahead

Operator

first Rod with Lache our from Wolfe question take will We Instructions] [Operator Research.

Rod Lache

business, higher require the of you maybe it's And cash a there's a for dollar with all, typically lot a to a level. of is review. I savings. Right want is every could your know to investment. high would just challenging operational restructurings questions, the X.X% of take get just the a that bit weak a about level, worry I at now, $X details But was hoping at on into market and European level, little talk just strategic that $X restructuring structurally quite of still which ask margin. high maybe X very -- to don't you any first

you changes side, made talk you over and expect this the us could next structural little maybe you're are being of whether about businesses that -- couple the that you'll -- fixable? any some more a make that more And interest the changes on any give So there of on weeks, a to see Goodyear? just bit us but I high some within strategic the specifics of at indications assessing that level,

Richard Krawmer

relative the of Yes, to Rod, think I first EMEA. performance would of all, you with agree we

below back rate. to point than well needs a again, goal the we may our near-term QX, the to million the per you point. I'd to $XX recall, XXXX. that know, You to And is industry of quarter rate, was issue $XX little as bit said run while run be -- your get is the certainly that and QX, million addressed sort pre-COVID really to that's still out, relative challenged better

the As the let's we truck it, still numbers business, business in consumer investor you've included in XXXX our versus is down, the see XX%; where seen call XXXX. XX% letter, you

environment cost competitive challenges, of I that the articles to. seen there high think we've think environment recent there. as of sort So to ICE options said business continuing and like. at looking near to assess of referred term generate EV and value solutions doing normal. point, the the look, and conversion, going given not all and that, over of well and And that's I number evaluating EMEA the about the particularly, been to what's having sort of the your the on talking sort back we've all long-term But the it's in tough you've are to And to macro

I'd say announced come. and X already some and near term, actions SAG Rod, is, What you've say, out, doing some now we're I'd and So more as we last plant manufacturing as actions we've quarters. the acting to now, some over like there we're pointed have, well

some the to competitors happened do that. near as savings earnings some lose done And things seen we're well. similar those that's stabilize sure of past looking in in we in near what also term do term, like is the we we've benefit that as the the that and also know not You've those make cost

are assess year, going Committee. And I go including opening this. with look back But with is we would agree this, say, our to would continuing you. to come I'm we my next I just certainly actively So and statement as to week more at it comments look, Review to challenging say a

Rod Lache

high And comments on offer relative review, and from you'll kind level, very of any known of that? going just your you can -- are businesses, interest you're it's just pretty strategic IOIs, indications through any on more players well a But other because high-level at to the that come? you in detail receiving the have

Richard Krawmer

Yes, we'll options, including all Rod, is maximizing shareholder of idea say be you the comprehensive again, Wednesday inclusive, evaluating to with review, The a have next on I'd a committee call. back again, to EMEA, doing separate value. all the

So we'll on Wednesday. come back you to

Rod Lache

materials just an raw improvement Okay. oil move is quarter. this that able of one And net you've XXXX? you to shaping maybe kind in price are things again had on how adverse in just may into nice to thing Any a early versus is starting up obviously, pricing be But direction. answer pretty thoughts

Richard Krawmer

QX. jump environment I maybe Christina Yes. stable in. I'll seeing point. just let to Rod, I would add your mean, pricing still We're very maybe in a

up segments, October even that value as part I to our That's can that the holds drive did. continue focused in we part still proposition that we what are Certainly, growing you of we the have remember bifurcate us. saw. And about premium we premium into of we really to as where where if this, see areas value, you'll the pool, market in has well. it's Rod, above market. the fairly again, most the the dynamics that's think, sort It's market, in on -- well. the terms quarter significantly, we the And profitable and the this of where those business is X% favorable I which of We really would XXXX, get market market, as And XX-inch of XXXX. you tell that's what profitable of our profit that will, part

ahead. supply That's you'll really brand, see our work there. -- our Cooper, that's products, well favor. still in demand Our QX. saw in move And QX as dynamics really what and I our what both again, played technology, Goodyear And to in the think were you we

over with Christina. and still certainly inflation some to Christina, going to We'll be on that think right to products. And of we're coming us, see go value at our it. in look, it to the want marketplace in But maybe you I'll might to the offset you'd turn jump that

Christina Zamarro

$XXX that material about so across $XXX the over got down back It the indicating said next given tailwind. we would on since say to our guidance a then. rates increase We raw first million would first be quarter some the just half us I'll commodities. Rod, us that million of are We what call. anchor half in base second about had feedstocks with we've spot year, Yes. for the

But in the million well. on to a headwind half, about QX, of in I a QX. are savings right opportunities benefit assess would we slight still we think, first maybe now all in $XXX non-feedstock a continuing implying benefit So see as

Some are down. transportation energy of those costs coming

continue back seeing how that's to it the come our we'll now. we're on refine and quarter right So assumptions fourth you to call, but

Operator

Picariello with James with next move will BNP We Instructions] [Operator Paribas.

James Picariello

missing Just be about missing for third in the if should the quarter chemicals So to course, would that -- SOI? appreciate The continue guidance quarterly of XQ business the right? the The only guidance you roll-up. only $XX quarter, color outlook want line, other. we incur it instance, headwind, be your fourth for we piece $XX one in that. line item framework, we on to for piece How million for the the and other million overall had call thinking

Christina Zamarro

James. Yes,

quarter. factory like saw in and a a the will was in earlier indicated impact in We're a That's SOI $XX the chemical in our sales item, discrete impact we've that lapping QX. So be comp impacted year. Poland have won't that We million the from in from other. that we third continuing shown fires what

James Picariello

Okay.

So should close the line something to fire impact, be the other right? neutral, excluding is that

Christina Zamarro

Yes.

James Picariello

to spend this Understood. for we actions, year? restructuring for think to next those Okay. flow just focusing that and the about you like speak detail cash look cash have actions free and announced then series spend can the year relative on for that you restructuring of intended And year with year this for you're guiding next as million the could on what $XXX is guys what throughout cash

Christina Zamarro

Yes.

reduction at also of and also earlier, SAG a That restructuring in this Asia production there's year, far And programs. we've in EMEA in in factory. And into programs Inflate for one. model Pacific been particular. announcement the mentioned Australia, our change $XXX to related So program, go-to-market so couple XXXX. larger a Rich a an then savings a our programs announced in [indiscernible] totaling million a was

be those with million Those date, So about year million. XXXX into in around to programs have announced XXXX. programs Inflate restructuring also of $XXX stub and cash $XX a next what's would been

Operator

may any you. participation, does conference time. conclude our at your as call. for as Thank Q&A session well Thank our all And this you you and disconnect

The Goodyear Tire & Rubber Company (GT) 7 Nov 232023 Q3 Earnings call transcript