The Goodyear Tire(US:GT) Benzinga·2025-08-08 15:31Core Viewpoint - Goodyear Tire & Rubber Co reported disappointing second-quarter results, with a loss of $0.17 per share, missing analyst expectations of a profit of $0.07 per share, primarily due to the impact of tariffs and global trade disruptions [1][2][8]. Financial Performance - The company's revenue for the second quarter was $4.46 billion, slightly below analyst estimates of $4.47 billion [2]. - This marks the second consecutive quarter where Goodyear has missed earnings per share estimates and revenue expectations, having missed revenue estimates in nine of the last ten quarters [8]. Impact of Tariffs - CEO Mark Stewart indicated that the second quarter was challenging due to industry disruptions from global trade shifts, including a surge of low-cost imports [2]. - The term "tariff" was mentioned 30 times during the earnings call, highlighting its significance in the company's current challenges [3]. - Goodyear's annualized tariff costs have risen to approximately $350 million, an increase from previous estimates, affecting operations in Brazil and Vietnam [6]. Strategic Responses - The company has increased pricing in the U.S. and Canada in response to tariffs [3]. - Goodyear is implementing a transformation plan called Goodyear Forward, which includes cost-cutting measures and staffing reductions, although the impact of tariffs has overshadowed these efforts [4][5]. - Executives expect tariffs and inflation to pose headwinds amounting to hundreds of millions of dollars in the upcoming quarters [5]. Market Outlook - Despite the challenges posed by tariffs, both Stewart and CFO Christina Zamarro expressed optimism about stabilizing conditions in the coming quarters [7]. - Goodyear's stock has seen a decline of 17% to $8.53, with a year-to-date decrease of 2.6% in 2025 [9].