Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from last year due to lower volume and unfavorable foreign currency translation [21] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [21] - Gross margin declined by 70 basis points, while SAG costs were lower by $46 million due to Goodyear Forward initiatives [21][22] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [22] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [24] - EMEA's first quarter unit volume decreased by 2%, with a segment operating income loss of $5 million, driven by higher raw material costs [26] - Asia Pacific's first quarter unit volume decreased by 12%, with segment operating income at $45 million, reflecting a strategic decision to exit less profitable business [27][15] Market Data and Key Metrics Changes - In the U.S. consumer replacement industry, low-end imports outperformed the industry, growing approximately 10% [25] - The European consumer replacement industry grew by 5%, reflecting high single-digit growth of low-end imports [26] - Asia Pacific's lower volume was largely driven by intentional choices to exit less profitable low-margin replacement business outside of China [15] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment through new product launches and has extended the lineup of the Goodyear Eagle F1 Asymmetric six to nearly 250 SKUs [10] - Goodyear Forward program is critical for achieving a 10% SOI margin and net leverage of under 2.5 times by the end of the year [30] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [14][48] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction [7] - The company expects to see sequential improvements in Q2, with growth anticipated in the second half of the year [16] - Management remains confident in the strength of their value proposition with OEM customers and anticipates capturing profitable volume opportunities as the year unfolds [14][30] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of Goodyear Forward [20] - The Chemicals business remains under strategic review, with multiple interested parties engaged [20] - The company has planned for multiple product launches in the U.S. this year, focusing on high-performance tires [11] Q&A Session Summary Question: Clarification on price mix in Q3 and Q4 - Management confirmed that price mix is expected to be $150 million year over year for each quarter [37] Question: Competitive pricing landscape - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [39] Question: Tariff impact specifics - Management detailed that annual inflation runs about $225 million, with tariffs adding $300 million in annualized costs [42] Question: Second half volume assumptions - Management expects recovery in Asia Pacific and strengthening volume in EMEA, while the U.S. may face challenges due to pre-buy dynamics [52] Question: Update on chemical business disposition - Management stated that the chemical business remains non-core, and they are engaged with multiple interested parties [98]

Financial Data and Key Metrics Changes - First quarter sales were $4.3 billion, down 6% from the previous year due to lower volume and unfavorable foreign currency translation [23] - Unit volume decreased by 5%, driven by declines in consumer replacement volume in Asia Pacific and Americas [23] - Gross margin declined by 70 basis points, while SAG costs were reduced by $46 million as part of the Goodyear Forward initiative [23] - Net income increased to $115 million, driven by a $260 million gain on the sale of the OTR business [24] Business Line Data and Key Metrics Changes - Americas unit volume decreased by 600,000 units, primarily due to consumer replacement [26] - EMEA's first quarter unit volume decreased by 2%, while the consumer replacement industry in Europe grew by 5% [28] - Asia Pacific's first quarter unit volume decreased by 12%, reflecting a strategic decision to exit less profitable business [29] Market Data and Key Metrics Changes - The U.S. consumer replacement industry was relatively flat, with low-end imports outperforming the industry and growing approximately 10% [26] - In Asia Pacific, the majority of replacement volume decline was due to intentional choices to exit less profitable low-margin business [16] Company Strategy and Development Direction - The company is focused on driving growth in the premium segment, particularly in larger rim sizes, and has launched multiple new products [11][12] - Goodyear Forward program is critical for achieving operational efficiency and financial targets, with a goal of 10% SOI margin and net leverage under 2.5 times by the end of the year [33][18] - The company is modernizing U.S. factories to increase capacity by 10 million additional premium tires in 2025 and 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty in light vehicle production due to global trade friction, but remains confident in the consumer OE business [7] - The company expects sequential improvements in Q2 and anticipates growth in the second half of the year, particularly in Asia Pacific [17] - Management highlighted the importance of adapting to the global trade landscape and macroeconomic developments to mitigate headwinds [19] Other Important Information - The company expects to generate gross proceeds of at least $2 billion from asset sales as part of the Goodyear Forward initiative [22] - The Chemicals business remains under strategic review, with multiple interested parties engaged [22] Q&A Session Summary Question: Clarification on price mix for Q3 and Q4 - Management confirmed a price mix of $150 million year-over-year for each quarter [40] Question: Competitive pricing actions - Management noted significant price increases across the competitive set due to tariff exposure, with Goodyear's exposure being about a quarter of others [44] Question: Tariff impact and mitigation potential - Management expressed confidence in leveraging U.S. capacity and mitigating tariff impacts through strategic pricing and product offerings [55] Question: Volume assumptions for the second half - Management expects growth in Asia Pacific and strengthening volume in EMEA, while the U.S. market may face challenges due to elevated inventory levels [60] Question: Chemical business sale strategy - Management reiterated that the Chemicals business is non-core and continues to evaluate how to maximize its value [105]