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Investing.com -- Goodyear Tire & Rubber Company (NASDAQ:GT) reported a significant earnings miss for the second quarter of 2025, sending shares tumbling 7.6% as the company grappled with industry disruptions and increased competition from low-cost imports.
The tire manufacturer posted an adjusted loss of $0.17 per share, falling well short of analysts’ expectations of $0.02 earnings per share. Revenue came in at $4.5 billion, in line with analyst estimates, but tire unit volumes declined to 37.9 million units.
"The second quarter proved challenging in both our consumer and commercial businesses, driven by industry disruption stemming from shifts in global trade - including a surge of low-cost imports across our key markets," said Mark Stewart, Goodyear’s chief executive officer and president. "We expect conditions to stabilize in the coming quarters, and we see clear opportunity ahead as we capitalize on our strong U.S. manufacturing footprint."
Segment operating income fell sharply to $159 million, compared to $334 million a year ago. After adjusting for the sale of its Off-the-Road tire business completed in February, segment operating income declined by $152 million, primarily due to higher raw material costs.
In the Americas region, Goodyear’s largest market, operating income dropped to $141 million from $241 million a year earlier, while the EMEA region swung to an operating loss of $25 million from a profit of $30 million in the same quarter last year.
The company reported that its "Goodyear Forward" transformation plan delivered $195 million in benefits during the quarter. The initiative has already yielded significant results with the completed sales of the Off-the-Road tire business for $905 million and the Dunlop brand for $735 million.
Despite the quarterly setback, Stewart remained optimistic about the transformation plan, stating, "We continue to expect to exceed the original goals for Goodyear Forward both in terms of cost savings and proceeds from asset sales."
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