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The Goodyear Tire & Rubber Company* (NASDAQ: GT) said today that it has completed the previously announced sale of the Company’s rights to the Dunlop brand in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property and inventory, to Sumitomo Rubber Industries Ltd (TYO: 5110). Gross cash proceeds at closing totaled $735 million, comprised of $526 million for the Dunlop brand, $105 million for a transition support fee and $104 million for inventory. Goodyear said it intends to use the transaction proceeds to reduce leverage in connection with the so-called Goodyear Forward transformation plan.
“The sale of the Dunlop brand is another action that advances Goodyear Forward by optimizing our portfolio, reducing leverage and sharpening our focus on our core portfolio of brands,” said Goodyear Chief Executive Officer and President Mark Stewart. “Goodyear is making significant progress, transforming our operations and growing in our targeted segments, and I am confident in our ability to continue delivering on our objectives.”
Goldman Sachs & Co. acted as the lead financial advisor; Barclays Capital acted as financial advisor; and Cleary Gottlieb Steen & Hamilton acted as legal advisor to Goodyear.
Goodyear’s first quarter 2025 net sales were $4.3 billion, with tire unit volumes totaling 38.5 million. Goodyear net income was $115 million (40 cents per share) compared to a Goodyear net loss of $57 million (20 cents per share) a year ago. The first quarter of 2025 included several significant items including, on a pre-tax basis, an estimated gain on the sale of the Off-the-Road (OTR) tire business of $260 million, rationalization charges of $81 million and Goodyear Forward costs of $7 million. The first quarter of 2024 included, on a pre-tax basis, rationalization charges of $22 million and Goodyear Forward costs of $28 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.
First quarter 2025 adjusted net loss was $11 million compared to adjusted net income of $29 million in the prior year’s quarter. Adjusted earnings per share was a loss of $0.04, compared to earnings of $0.10 in the prior year’s quarter. Per share amounts are diluted.
Goodyear reported segment operating income of $195 million in the first quarter of 2025, down $52 million from a year ago. After adjusting for the sale of its OTR tire business, which was sold in February 2025, segment operating income declined $40 million, driven by higher raw materials. Segment operating income reflects benefits from Goodyear Forward of $200 million, unfavorable net price/mix versus raw material costs of $113 million, inflation of $56 million, lower tire volume of $33 million, un-absorbed fixed costs of $19 million and unfavorable foreign currency translation of $12 million. First quarter cash flow from operating activities was negative, and in-line with typical seasonal increases in working capital, particularly accounts receivable and inventory.
AutoInformed on
*About The Goodyear Tire & Rubber Company
Goodyear remains one of the world’s largest tire companies. It employs ~68,000 people and manufactures its products in 53 facilities in 20 countries. Its two so-called Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, attempt to develop state-of-the-art products and services that “set the technology and performance standard for the industry.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Goodyear Completes Sale of Dunlop Brand
Click for more.
The Goodyear Tire & Rubber Company* (NASDAQ: GT) said today that it has completed the previously announced sale of the Company’s rights to the Dunlop brand in Europe, North America and Oceania for consumer, commercial and other specialty tires, together with certain associated intellectual property and inventory, to Sumitomo Rubber Industries Ltd (TYO: 5110). Gross cash proceeds at closing totaled $735 million, comprised of $526 million for the Dunlop brand, $105 million for a transition support fee and $104 million for inventory. Goodyear said it intends to use the transaction proceeds to reduce leverage in connection with the so-called Goodyear Forward transformation plan.
“The sale of the Dunlop brand is another action that advances Goodyear Forward by optimizing our portfolio, reducing leverage and sharpening our focus on our core portfolio of brands,” said Goodyear Chief Executive Officer and President Mark Stewart. “Goodyear is making significant progress, transforming our operations and growing in our targeted segments, and I am confident in our ability to continue delivering on our objectives.”
Goldman Sachs & Co. acted as the lead financial advisor; Barclays Capital acted as financial advisor; and Cleary Gottlieb Steen & Hamilton acted as legal advisor to Goodyear.
Goodyear’s first quarter 2025 net sales were $4.3 billion, with tire unit volumes totaling 38.5 million. Goodyear net income was $115 million (40 cents per share) compared to a Goodyear net loss of $57 million (20 cents per share) a year ago. The first quarter of 2025 included several significant items including, on a pre-tax basis, an estimated gain on the sale of the Off-the-Road (OTR) tire business of $260 million, rationalization charges of $81 million and Goodyear Forward costs of $7 million. The first quarter of 2024 included, on a pre-tax basis, rationalization charges of $22 million and Goodyear Forward costs of $28 million. Goodyear Forward costs are comprised of advisory, legal and consulting fees and costs associated with planned asset sales.
First quarter 2025 adjusted net loss was $11 million compared to adjusted net income of $29 million in the prior year’s quarter. Adjusted earnings per share was a loss of $0.04, compared to earnings of $0.10 in the prior year’s quarter. Per share amounts are diluted.
Goodyear reported segment operating income of $195 million in the first quarter of 2025, down $52 million from a year ago. After adjusting for the sale of its OTR tire business, which was sold in February 2025, segment operating income declined $40 million, driven by higher raw materials. Segment operating income reflects benefits from Goodyear Forward of $200 million, unfavorable net price/mix versus raw material costs of $113 million, inflation of $56 million, lower tire volume of $33 million, un-absorbed fixed costs of $19 million and unfavorable foreign currency translation of $12 million. First quarter cash flow from operating activities was negative, and in-line with typical seasonal increases in working capital, particularly accounts receivable and inventory.
AutoInformed on
*About The Goodyear Tire & Rubber Company
Goodyear remains one of the world’s largest tire companies. It employs ~68,000 people and manufactures its products in 53 facilities in 20 countries. Its two so-called Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, attempt to develop state-of-the-art products and services that “set the technology and performance standard for the industry.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.