GT - Earnings call transcript Q4 2024 | The Goodyear Tire & Rubber Company

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Operator

Good morning. My name is Marco, and I'll be your conference operator today. At this time, I'd like to welcome everyone to Goodyear's Fourth Quarter 2024 Earnings Call. [Operator Instructions]It is now my pleasure to turn the conference over to Greg Shank, Senior Director of Investor Relations. Please go ahead.

Greg Shank

Margo. you, Thank welcome and fourth XXXX quarter Good to call. earnings morning, our CFO. Mark call, our CEO and the on Stewart, Executive we President Zamarro, Today Christina have our and and Vice President;

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

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

SEC. presentation results, to replay available. Slide the is XX more that, the over now significant materials most turn financial to non-GAAP filings of of included refer will For These call to this today's factors that our the comparable found please website I supporting for will be Mark. information on the call could appendix also today's With and affect also A reconciliation call a on presentation. future call on discussed be investors.goodyear.com, the at can of in with our of measures GAAP where the measures the

Mark Stewart

earnings our and Greg, our good you, an quarter suppliers our all thanking today customers XXXX. Thank like are Welcome and associates, to in of morning, to to outstanding us deliver by our begin fourth call. helping everyone. year I'd

we in delivered As for the exceptionally flow of in and position seen sure release, quarter out to by our company past it, strengthened set our to as ahead the the was long-term relative success. I'm operating fitting segment year strong It income expectations. we a of you've alongside Goodyear's cash And financial fourth some free years. transformation foundation few marked

truly emphasis we $XXX given our our Goodyear talented expansion by consecutive first successfully organization, put Plan. the Forward. XX. Goodyear force program perspective, of on all Across outcome through our accomplished. program follow-through. million really and And my I'm full of with effort in energized off Martin year of under this quarters and now delivered over together, transformation remarkable nearly the X To back kicked the Looking November It's a we of executed into benefits put relentless the execution team we've we've company, Forward

Goodyear our every We is this growth operating full in our year. exceeding accomplished this earnings past growth targets end $XXX million, the by recoveries. segment generated with The quarter XXXX turnaround the result year from recovery of income each segment the income Goodyear together, a benefits forward we've and million, COVID. year following $XXX excluding year margin has XXXX, over excluding that since insurance operating was first immediately grown the and

progress clear the continued to commitment is throughout Our company. entire

move unlock We Goodyear's will forward. to we as full continue drive to potential execution

completed to part earnings, to we're future addition that our sell OTR, the progress positioning delivering In growth. brand of review lot and and demonstration have It's the strategic company we our ], a our both the Dun clear process. [ as on an the announced agreement well on also plan business, the focused divestiture off-the-road of for

transformation, with come challenges. hasn't As it all without some

end are in U.S. the As look of we well in Brazil. X low the at inflows Europe line growth consumer at unprecedented. The the as industry over past replacement year, last low-end seen the imports we've the the market the this years impacting top

level or been Looking shifted market, foreign countries impose has industry. the whether largely not avoid U.S. of that of Southeast in subsidies in are sought U.S. number tires or from that our Asia, counteract to from subject including has production imported to to tariffs the are the to sourced a antidumping either duty order low-cost to unfair countervailing the tariffs

U.S. volumes to the well OE in in replacement how the manufacturers, seen be MCA our the as all from located Goodyear, support markets year in countries XXXX. will It the evolve in X remains customers this including tire The our as Tier tariffs to X U.S. source factory both

active quite as in the As the here you been as footprint and well would the of our with safety manufacturing having the our we government products our and consumers marketplace. technology the largest in right officials, in significance services the U.S. U.S. the emphasizing discussions we to all bring with quality, Goodyear expect, have that

to near-term leaders forward issues to look continuing supply. We collaborations our our across and critical Mexican our working tariffs to In we're in as of related mitigate operations Washington meantime, impacting the these any address with work we Canadian to business. the our potential impacts

remain tariff fluid agile situation be the and As efficiency. be will and execute we'll may fluid,

remain our benefits this continue to effectiveness and strategic evolve year. fronts of modernize footprint, in going forward We're 'XX planned the the manufacturing advance will with of is will push million we our forward, new in bolster on sales us advantage in on execution enhance which take also XXX to XXXX. of regional This we products, that the 'XX several executed and USD our line steadfast performance continuing moves We to on top models. our our cost Goodyear made and foundation operational will to allow our

the spectrum SKUs. accelerate the refresh of introduction new how in our on blink-based we portfolio also U.S. our opportunities. to of tiers capitalize a more ] compete our In effectively last to will U.S., of products [ In call, conference will we coverage offerings, high-end, and shared the much while high-margin increasing broader premium I

SKU with in predecessor product RIM We U.S. improvements coverage will the the lines introduce large this significant the each lines. than year, in X

a increasing for and units 'XX we're side, manufacturing million project XX our in add capabilities will the premium in of new about our 'XX. Oklahoma On modernization that tires capacity facility with

will highest we're optimal level ensure profitability products for the at the year. will this running and we're and output of opportunities efficiency that the We running yield

sales brands. new grow for customers as both value customer through global our market, look we're the service family in across the portfolio our clear well digital with we the products in in a capabilities, objective and our investing consumers strengthening all Goodyear platforms our our to overall strengthening with also customers, our to as demand As proposition of

brings well SAG In optimization. we optimizing Metzeler as early and or Don and both me. look than manufacturing SG&A our our level. of leading as manufacturing he'll manufacturing our chain Don taking manufacturing global lowering next rent developing, directly capabilities global operations world-class years reporting plant in we and more as of January, multisite addition the to be we're transforming side, of announced cost complex, instrumental and the to SVP assets On XX the supply our as at experiencing,

drive We as significant we to opportunity KPIs cost. across have a look our and higher lower output both

leadership many organization manufacturing the the manufacturing of year. been joined in Americas. last creating Alan leaders to addition, in one from with is of team in Align to These manufacturing performance Alan leading high years changes our our have this and leadership X In operation. Mettler a our company I've company. over has demonstrated has Don leading strength European now transformation crucial and business our the culture is the added Kona a

addition, streamline In are to our costs effort the structure of on duplication incurred with right inherently decentralized that model opportunities in model. and and current address under leadership we will operating place, capitalize excess our

some region optimization from cost, to across speed aligning as the we that to will their will future new leveraging are and time, This our regions, and will world. The structure one development, their lower and meaning able the product portfolio, globally, standardization, the and with the product and will and already each around world. within many Today, transition own model world, be of people meaning of manages operate we process products, better innovate but By our operate take key X sourcing products is translate leveraging shape service better Goodyear assets, quicker around our our structure the the companies benefits manufacturing. of well. refreshing

our in advance several to year. growth and Looking and focus ahead, we our and on landscape will shareholders. will for operational foundation strategic navigated in financial us for coming forward very Goodyear our discipline we're a execution initiatives continue positioned We challenging ensure strengthen further to the work to as to prioritize successfully we continue support our 'XX, long-term and

turn it I'll financials, over Christina, Thank through you. the and Next, and on the she'll take move you Q&A. to we'll to

Christina Zamarro

our to for of with year leverage respect feel quarter of our about in XXXX. and executed by us plan end stand the Mark. fourth as look attain while we the SOI good our Thank X.Xx We targets at as goal an continuing very for both was XXXX important build we've pipeline you, savings to on to where net year. XX% the X the to margin we transformation

on book lower in our AG expectations $XX begin with streams. statement the in totaled I'll quarter down X% Slide income Goodyear year, deports Fourth ] million, line low-end forward volume declined by X. U.S. billion, was driven in year-end year, last by lower volume. growth driven the with versus last given $X.X the sales review from [ Unit X%

margin SOI we significant in Segment and the As million the increased per were full a adjusting point of $X.XX. X claim After quarter was X.X%. operating to settlement versus incurred related percent year. items, earnings of for an $XXX damage storm share our and SAG sales, last insurance to including final XXXX income for declined

Excluding X.X%. SOI insurance margin was proceeds,

material operating Turning raw unfavorable to versus was Price/mix volume the increases the raw were Net $XX materials X. costs. tire during Lower quarter. factory unfavorable headwind of Slide in our by $XX on million walk quarter a and income unit utilization price/mix segment in million. the driven was

given volume. an pricing and mix commercial in was OE Now declines stable, our negative, in consumer was but volume increase replacement

million as was $XX earlier, proceeds insurance of I $XXX inflation in XXXX quarter. final execution related Forward $XX that Goodyear strong the Continued settlement contributed on to million collected claim. against And tornado in our referenced the we million

higher driven compensation, the at our and Poland last Other tire-related year's $XX earnings factory lower by million SOI businesses. in in other favorable fire incentive from was recovery

cash flow Slide strong quarter working the inflows. in on by Turning flow sheet $X balance cash XX. the driven billion to capital and Free exceeded

X. the to press year-end was that OTR generate full we turn annual notes savings. actions for this down Pro leverage billion, principal outstanding rate and on net shared debt in and intend interest proceeds debt. nearly these expense $X.X $XX repay our in remaining $XXX We an on million February As a later from from the the million reduce sale finalized should net we Together, X.X% sale will of variable our forma release, month, our was transaction, the year-end Xx, XXXX. earlier

Finally, further The leverage sell of process. will and we earlier Chemicals close about Dunlop brand $XXX proceeds to strategic the the in million upfront XXXX. to expected That our of definitive to in January, related in business midyear remains used agreement a SRI. our reduce review be announced transaction is to

volume SBU million units our replacement. Slide XX, X and to results about consumer by on Americas starting Moving unit driven decreased

the X%, to U.S. potential look activity industry, all-time tariffs. channel stocking we the XX%, an to outperformed pre-buy industry related and of high grew industry rising the result declined about as As a consumer at replacement imports and low-end

share gains XX%, On approximately from new declined consumer resulting OE last grew the and following approximately wins fitment strike, year-over-year weakness. driven points. of other volume U.S. recovery UAW hand, industry volume the by and replacement X in year's OE Commercial our

for income operating million reflect $XXX raw Segment Americas lower costs offset material X.X% net partly proceeds. the or of forward Americas and and by benefits Goodyear volume, price/mix sales. insurance totaled versus unfavorable earnings

Slide XX. X%. EMEA's increased to Moving quarter unit fourth volume

strong the a both robust winter peak due X Our Mountain regulations season. was by Snowflake replacement volume and all-season that new winter Germany driven reflects in tires. tire to selling on require consumer part growth market, in The in market labeling

Forward Our net OE material million. commercial than and was about but inflation. cost headwinds offset was in was raw volume weakness. versus price/mix in flat Segment benefits industry operating Goodyear given about consumer income XX% general down $XX more

Pacific on Slide Asia XX. to Turning

business sales, channel of income an lower-margin unit reduce quarter and in to operating decreased $XX markets million last Segment driven key and compared $XX by volume million year. Fourth increase XX.X% in to destocking totaled X%, China. actions

outlook. Turning to our

on the We in based of decline expect first SOI assumptions significant half effects our production fourth prudent will our increases material our costs. carryover in cuts volume, quarter around raw and that

Goodyear half, second when price offset to fourth margin which growth, we earnings particularly benefits, raw than volume and the growth with should material modest support quarter. the Forward mix In more in inflation, and expect combined

fees we about million forward other year. $XX addition, and decline In consulting costs expect last to by versus related Goodyear to

in difficult limit could at offset materials XXXX time secondary our to plan, are us our with Mexico costs risks earnings raw predict, look primary raw related both growth mix. further we to Canada Similarly, including potential tariff typically the later increases it and price effects. in in takes this second material As impact a as half and our to year to and step-up

near-term volatility under case, stronger of benefit forward. base cost manage we've any we'll the with gained In the Goodyear

to may our the determination unfair in to also competition plan volume contemplated. make and upside potential to Commission in price tire outside tariff as a of Sources that coming U.S. consumer of include related for impacting tariffs anticipate those imports European growth countries months. related Similarly, mix the the currently we to

and could channel abates. prices decline material prebuy see if of stocking Finally, inventory raw low-cost we

specific to look last OE in to As declines outlook drivers global U.S. first elevated of quarter, OE volumes at we the unit X% lower channel X% decline inventories we versus and reflecting production. consumer the wholesale approximately result as the to expect a year,

driven fixed actions expected million, of million, In fourth and addition, by raw tailwind rubber driven of to and unabsorbed production $XX is costs during increases. Raw we synthetic with will by expect increase approximately driven pricing and implemented have $XX fleet contracts million, higher material the price we customers. index by mix about quarter. Price a $XXX OE natural lower be materials about

million the $XX million first see work of increases be $XX streams. driven will and raw of costs At across material drive rates about to Goodyear progress cost forward by a approximately million with transportation in currency in inflation. approximately transactional continued $XXX other that XXXX current all in increases reflecting core would expected headwind over spot million, $XXX of expect reflecting about of and Inflation above total are impacts. half of rates, benefits, we to

Poland and million. $XX XXXX be related an transaction, and costs of the the OTR Dambisa $XX million Foreign $XXX modeling repeat million. million non adjustments was facility headwind to million Also $XX related revenue to benefit. in our was fire be exchange a for about year will will the full $XX last was of OTR amortization Depreciation SOI year and our

approximately reduce lower approximately $XX than in costs, reduction. on by assumptions Slide XXXX Other primarily XX inclusive to to for SOI will updated XXXX. Interest last have million expect be financial transaction driven been year, $XX stranded expectations the of We our Asia. million by reflect expense debt

XXXX, announced in footprint facility. Higher some X plan factories million costs, under of including actions $XX our questions. in the announced second the for With recently year. lower objectives. to capital cash forward, in Danville, incur CapEx With major expect generate we'll XXXX this Goodyear of line and with year, transitory our Virginia to in your we announced the With to manufacturing restructuring programs reflects expect our consistent a open deleveraging relative half that, in inflows cost working approximately positive free flow spend we

Operator

Paribas. take We'll with first Picariello question Instructions] [Operator our from James BNP

James Picariello

expectation But it's the provided expectation or call year? for is I confirm on your can the half, question if based is already material on we half, just then have just is neutral facing? second headwind any price pricing? spot peers you first first My mix given to additional the for the raw the know seen the your harder farther thoughts you the out. should what industry substantial actions that. headwinds far from And potential thus on assume rather raw pricing materials, And an you that

Christina Zamarro

the RMIs environment. your grow the second When quarter from first and I'll for follow should our price Those months Sure. and the of pricing months bridge our X in at with into A our SOI part Yes. fleets. X that on XXXX, of start, generally James, realization index I'll on we raw third have and our price/mix up were arrears. contracts a Mark OE look material the on is quarter. --

in Mark the we the key we've as full first so follow-up have been I'll here that. our pricing markets run in in well. And world QX. don't There's that And taken the actions around rate also quarter let nearly on

half. of million for the a the is is rates hold, year. to raw of $XXX about rates When million we $XXX in based the look current could baked spot the see what million we back headwind $XXX would I at materials, on say half If first spot the

on Of so while pretty have prices update we'll been continue volatile, you to spot that. course,

rest for again, into with mix But or depending QX the on of what grow looking price to the just and leveling off year Mark? Ross. QX before happens

Mark Stewart

quarter since example, call, Yes, commercial well of East. well the both countries well we've pricing then quarter for actions U.S. rolling James. multiple in pricing Middle the on in mentioned, of already right, pricing as product globally, across line, American across we've third Turkey, as in as we've some rounds actions talking tires in And Latin as just through product taken. consumer Yes, specific We've Europe quarter X. into our actions taken as as Christina that as pricing done happened, the X

we'd So the expect time to of going see that quarter period system. benefit flows into as X that the the through

are priced upgraded our We marketing competitively continue intelligence. to to we that make on watch sure things based

taking categories that area the price right so are thing each big a it's benchmarking mentioned, in at that focused we're and on we we across we're marketplace. competitive in our a that sure really and of we position As a consumer-facing making that the in from scraping look the

James Picariello

No, one And I it. Got on quick question, X-part then have helpful. that's volume. just a

industry full year volume up assumption, X% the the at commercial at have consumer the You flat, level. again, midpoint, industry

volume on thoughts X% first to the see X% year. the Goodyear's, down quarter. We your for Just could for performance the

easier the what half for obvious the in then growth at the And -- fourth levels point? comps? there savings the Is this expectation there quarter, inventory good upside. likely curious is for in channel on Goodyear just your Just second was pathway Forward given

drove that had that margin effort. just have on I expansion it the seems actions? been So just upside? Is in pricing like your might It question a what

Mark Stewart

Yes.

growth to start to marketplace Again, the as and can in Asia with Let in in the expect you relative U.S. with the and then stronger Europe 'XX about Goodyear we forward me we expect market side, replacement global talk continue volatility in to see imports. -- mentioned, see about consumer a volumes we talk Christina. overall and to

declines in be will OE, the into see we impact on in second as countries we end, the American Latin starting imports side. some new But there mentioned, think the as first expect there tariffs growth a In gone you consumer flattish on the October. half with for South back the Brazil, America in have U.S. or to

a demand, the especially at progressing we throughout the those that announced we that's to with non-imports take year begin from recently we As replacement coming commercial, impact, think tariffs as look declining Thailand. to stabilize going to on

then think question new going activities your lower And fleet continuing the and that, first of prebuy stronger going place. second year. from And regs to OE part I those their last place. soft, so side, on we is go being with And relatively the beginning into address overall those regulations then JSD will be second secondary half half, volumes? and new into before how are then commercial

doing on we're that So multifronts.

As value on we growing. bringing additional nearly shared a generate at highly was that teams returns and and focus ourselves profitable XXX our area engineering we step in on. marketplace for of greater SKUs the teams, We are in quarter, dedicated some-odd in This aggressively that reorganized are back. we XXX took going We our us were into price. the and have and terms the of to segments an high-end, go-to-market market SWAT a premium also the behind

area a focus key that's us. So of for

volume X our half well lines, UHP we Xs, X, really MaxLife all coming the are of world, the of this second and right the lines Wrangler all that premium workhorses, SKUs on number feel marketplace in our all towards around Eagle again, into at and which year, the segments of is as discussed market, these our marketplace WeatherReady power marketplace high into We've is when the which X of coming coming the the James. right, those got into we each are good throughout high-value FX are the power as new the in season as that side ASM's

Christina Zamarro

of mean and year. And I spent in a lot to lot James, there's price last started just just time follow-up question that then. a QX of a on action Mark your

the year so . forward the that premium especially And in you're of in seeing good end programs, market. the

Operator

next our question take Research. Wolf with Emmanuel Rosner We'll from

Emmanuel Rosner

half. same I outlook, topic, half was price hoping to mix the versus actually volume, follow on first is second up which

growth in least at back the just maybe so you over in it second Can first go then the a contemplates outlook seems for -- half, decline but in So just half? half. be will conviction what point? mix, and on And improvement drivers guess, of anticipated and the this visibility have in price volume, the much I how this you do second the at those

Christina Zamarro

you XXXX for the we've XXXX. $X.X out proceeds, Sure. insurance the adjust billion. bridge I'll puts our $X.X about them, billion. for with at was SOI if we SOI and at talked And look about are If takes, that as start we

to of by course, said that's us have that of add for other in forward, driven and outside core inflation, mostly against to transportation. we're We going Goodyear of base million going million. Now $XXX inflation $XXX costs headwinds also

It's run a quarter. million $XX going to

X are we quarter ramping factories We that in of production down year. also third or have the and this decreasing fourth

our quarter transitory increase manufacturing will and fourth $XX third in inefficiencies that some the million. costs about through So by

raw in spent a lot on We should time first around get first maybe about second by in materially $XXX that of the already at spot we're up but QX. talked the price/mix. prices And current thinking about call million $XXX QX quarter, about the a a about to half, you million and lot million, the and rate QX then given material half. in to grow headwinds, We've run how pretty $XXX

the spent already. as obviously, a on And implemented we're should does down just that's presentation, that into mix. in then, new year with in it through come lot actions support $XX RMI a Mark basis, pricing the the quarter be first development, outlined bringing full which the million well. time new our indexed also of agreements pricing and market, then driven product And OTR OE fleets to headwind. We've volume. that our lines by we've product should a on

production OEM in and comps industry recovering and consumer lower laid and second by is in half out the very U.S. driven us, moderate by a in low-end broadly mostly imports driven half for stocking OE. growth the volumes just commercial channel first lower we've of broadly and OE a then What following low

strong with in say on XX%. of you you safe should put once including order current our a insurance, be should the very so And a model that that's it's business, be line we to of that to the underlying which SOI all year, in means level think the growth something level demonstrating together, of able I of

Emmanuel Rosner

just -- in in That super line so mean, helpful. And line with XXXX? currency, with is I then

Christopher Delaney

In line with...

Emmanuel Rosner

'XX last got would including 'XX, with year? be in you the line proceeds

Christopher Delaney

Yes.

So like level. X,XXX the

Emmanuel Rosner

flow. if -- Yes. could positive that was our it. with understanding walk Got you cash quantified I that How free there just before well. plan? restructuring, we for think you And set you also I the call assume then cash as us this restructuring. think is No, help free year, should overall but as that's And as this about Perfect. then is of to which the for how spend well. part much more flow

Christopher Delaney

sure. Yes,

the includes So of restructuring. $XXX positive cash free million flow

be SOI by intend This go driven positive, that through billion. restructuring. and $X.X including it, we So just about talked of, EBITDA you we is you call get about really after an through should we the to model to that talked just onSOI.

will benefit. out laid a capital that Working restructuring. We've be

on year-over-year of couple free the XXXX. all hundred And dollars million that, that Interest than should cash a fairly interest expense our coming lower We'll and offset income a for a that. CapEx significantly sorry. restructuring, expectation have get normal you of to down fees financing then against taxes basis. million is course, Of flow XXXX, positive and will

million transaction of Dunlop we the $XXX to further There's restructuring of on little will and We'll you year a see finalize think year, expense million. through Goodyear we bit savings if then close next chemicals. And see from normalize. of restructuring Forward $XXX review thinking next the strategic once be interest should on the carryover order to

position positive So business? in would year run cash of rate of next we to be the flows, drive the flow significant cash a underlying reflective earnings

Emmanuel Rosner

helpful. Great. That's super

initially overall doesn't memory me serve have total -- to Is of lower sounded just than Just that it north right, my been Maybe billion. sort on final budgets like of the me but it $X point. spending is restructuring anticipated? could the

Now million $XXX just $XXX next about we're maybe to million year this million and year. talking $XXX

So overall than expected? is bill it an just lower

Christopher Delaney

as allocate then just for we million going had I is million in Goodyear that up as $XXX aside think, we're And The $XXX about restructuring. $X year. laid part $XXX in I've yes. next XXXX out, and of to Emmanuel, XXXX. we million it about billion capital to spent set

going around so the program. probably right we're to So part as million overall land $XXX of or

of some our is world. terrific constituents the think with negotiations around that I

increase a execution part to that that in our volumes. seen also just efficiencies think about I the we've what generating in of describing is the Mark's factories

in And updated. announcements nothing If else you so we'll no keep pipeline. anything the changes, planned, other

Operator

next our Doug from Bank And question with comes Karson America. of

Douglas Karson

want the I sheet Xx last here. had maybe below a what to a Great. moment balance for to now year. almost turn it's as you leverage turn Net

kind my working. first is where . on of kind with sheet So headed? the and Have the certainly to program up a is balance question. you to And relative at chance at look to pretty a rating That's pulled forward ratings had the the refresh just agencies have take sheet. seemed them newer balance progress made kind of I've of underrated Plus your the BX B you've

Christopher Delaney

million use transaction for making deleverage Thanks, to a we further. a We do that of intend balance this gross Yes. year, certainly of close to that one each Doug, of bring the more sheet. intend the to talk to $XXX lot proceeds on rating in Dunlop question. progress on and And the We later agencies regularly. will very little even the

the think on in a XXXX I can at of was recent most programs of negative Last they was was placed free emphasis see I look we because lot flow, that our a in lot conversation. you And which slightly forward night, do place. forecast, think had cash restructuring there of fact, the

agencies, from given as And think far. look the and so rating more I outlook just we the ahead, positive progress expect we sentiment would so

Douglas Karson

trying increase material fluctuations. risk, see to to big in up help environment, Are deserved. Maybe some impressed less have optimization was at for in volatility be the And $XXX $XXX I tariffs us categories, about risk forward between It's million so about million. those thoughtful as at cost given we're much look purchasing. footprint to I raw $XXX savings the well these some . line $XXX That's great. the at the close of XX% just Just the million. and more of to there and think items environment? you million for Goodyear

Mark Stewart

We Doug, about strongly projects the ahead, really, right? put look Yes. We we projects, well. very right, were -- and executed grassroots really We additional they're feel as positive able in to 'XX.

across So from from I the around dedicated streams. And our the as as our with our governance key really now world. VP session weekly there X X part start one coming manufacturing It's into of work We've associates record. a good. with regional mentioned got very of at organization our global track call, organization the XX-year we've heads new strong Don combined to Mesler, our the reporting

the lot of just a effectiveness, us our material of strong on bolts and as to manufacturing upgrading just through us flows the in equipment the went really basics, the difference time the scrap make most terms operating few on and diligence with through rates, terms space the teams getting of in the I position getting efficiencies, KPIs a working and myself our really super nuts we ourselves working right, that in of our things last of spent year again, there. really

where our marketplace activity. indirect start both actions, looking as plant to of in efficiency through as programs cost very optimization. footprint current our our last purchasing programs right at can work and structure. we're the year streams. side, with be on improvement both on to go truck about arena, this supply base, purchasing well cost those We drive drive feel in we and So future and position commercial of and operation the compete a the announced strong in good our MRO And working In to continue as year a our the as the at the continuing well we in there we

throughout there area, well as we to early that want in we've it. a in more that basis doing of actions taken than look efficiently and feel overhead we do right take this strong. year last been making you things structure continue is we to at the monthly say can what look that on a that condition to SAG our very that sure in again, So as We've our refer SG&A, as year as however to or are

So how story savings point we R&D, at are along our gotten that continue. in is long of And to our embedded at improved just we very, a negotiate. rate those so with we that equipment DNA. our it's to strong looking short feel how looking spend, very going And it, activities really the standards,

Operator

[Operator next Edison with Instructions] go . We'll to Bank. Deutsche Yu

Unknown Analyst

your about the and thoughts challenges chemical Has side. for to Wanted that? still some muted. ask chemical to I What are -- on some We a you on sale. been track on the bit more just the for industry a companies obviously, reception said latest know the speak there's there. you're

Christopher Delaney

review we a more process. say remains have that, Edison to don't in than other that lot

or the I we the think think when and the into got equity. in across part strategic you Dunlop whether XXXX. that, generally pretty was course, bit focus This little sectors, about market of all speaking, I earlier private a on has -- in it's the interest think been one, OTR later, fact, of

Unknown Analyst

it anything that earlier. I benefit if strong the over? there apologize doesn't of very carry And one-off there I kind of then check some wanted in of to actually just Just missed that. on SOI sort very, double quick It was one APAC. kind margin. Was And a on

Mark Stewart

-- Their and X EV is quite got pricing really strong with the there. the products the manufacturing No. strong. We've very operations right just front on AP. new the prowess in, particularly on marketplace, in have very AP. really well marketplace, fresh going doing winners good, in in operation winning we a just

Unknown Analyst

you heard I the mitigation of tariffs? maybe any expansion -- in about Got in one. of one kind quick in it. last -- case Actually, Is just one know the earlier Oklahoma. that quick one I way

Mark Stewart

like that modernization but was the largest, It's Doug, you higher And higher taking take case, tell that or for just one we right? profit, we to across we ball that's facilities do were higher make that good volume terms We actually. crystal needed moving in No. not that, And the the actions margin additional there our the necessary segments. enough larger needed our right in all one of sizes, to our into to marketplace was of more of to just the RIM would footprint.

Operator

And or I'd to questions. Mark we have any the to no call closing for final over back further like remarks. turn

Mark Stewart

Okay.

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Operator

And that conference. you. today's conclude Thank your participation. We does appreciate

any time. disconnect may at You

The Goodyear Tire & Rubber Company (GT) 14 Feb 252024 Q4 Earnings call transcript