Goodyear Tire & Rubber Co (GT) 2024 Q2 法說會逐字稿

Good morning. My name is Ashley, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Goodyear's second-quarter 2024 earnings call. (Operator instructions) Please note that this call may be recorded.

早安.我叫阿什利，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加固特異 2024 年第二季財報電話會議。（接線生說明）請注意，此通話可能會被錄音。

It is now my pleasure to turn the conference over to Greg Shank, Senior Director, Investor Relations.

現在我很高興將會議交給投資者關係高級總監 Greg Shank。

Thank you, Ashley. Good morning, and welcome to our second quarter 2024 earnings call. Today on the call we have Mark Stewart, our CEO and President; and Christina Zamarro, our Executive Vice President and CFO.

謝謝你，阿什利。早上好，歡迎參加我們的 2024 年第二季財報電話會議。今天的電話會議有我們的執行長兼總裁馬克·史都華 (Mark Stewart)；以及我們的執行副總裁兼財務長克里斯蒂娜·紮馬羅 (Christina Zamarro)。

During this call, we will refer to forward-looking statements and non-GAAP financial measures. Forward-looking statements involve risks, assumptions and uncertainties that could cause actual results to differ materially from those forward-looking statements. For more information on the most significant factors that could affect future results, please refer to slide 20 of the supporting presentation for today's call in our filings with the SEC.

在本次電話會議中，我們將參考前瞻性陳述和非公認會計準則財務指標。前瞻性陳述涉及風險、假設和不確定性，可能導致實際結果與前瞻性陳述有重大差異。有關可能影響未來結果的最重要因素的更多信息，請參閱我們向 SEC 提交的文件中今天電話會議的支持演示幻燈片 20。

These materials can be found on our website at investor.goodyear.com, where a replay of this call will also be available. A reconciliation of non-GAAP financial measures discussed on today's call to the comparable GAAP measures is also included in the appendix of that presentation.

這些資料可以在我們的網站 Investor.goodyear.com 上找到，該網站還可以重播本次電話會議。此簡報的附錄中也包含了今天電話會議上討論的非公認會計原則財務指標與可比較公認會計原則指標的調節表。

With that, I will now turn the call over to Mark.

現在，我將把電話轉給馬克。

Thank you, Greg, and good morning, everyone. Welcome to our second-quarter earnings call. Thank you for joining us, and thank you for your interest in Goodyear.

謝謝你，格雷格，大家早安。歡迎參加我們的第二季財報電話會議。感謝您加入我們，也感謝您對固特異的興趣。

I want to start this morning by saying we are clearly progressing on our goals as part of our Goodyear Forward Plan, and that is true on multiple fronts as well as in each of our key work streams of the Goodyear Forward Plan.

我想在今天早上開始說，作為固特異遠期計劃的一部分，我們正在明確地實現我們的目標，這在多個方面以及固特異遠期計劃的每個關鍵工作流程中都是如此。

In the second quarter, we achieved significant margin expansion, another strong quarter of year-over-year earnings growth. We have just recently announced the sale of our off the road, our OTR business, another important step as part of our overall transformation plan.

第二季度，我們實現了利潤率的顯著擴張，這是另一個獲利年增的強勁季度。我們最近剛剛宣佈出售我們的非公路、OTR 業務，這是我們整體轉型計劃的另一個重要步驟。

Having said that the industry environment in the first half has not been supportive, including downgrades to OEM production levels and significantly more challenging replacement markets, which has been saturated by lower imports. we're anticipating that these industry challenge will continue through the second half. In that environment, and as a result, we will continue to focus on profitable volume segments of the market as well as the areas that are generating the highest return for us as well as continuing the execution of our cost reduction efforts.

話雖如此，上半年的行業環境並不樂觀，包括原始設備製造商生產水平下調以及替代市場更具挑戰性，而替代市場已因進口減少而飽和。我們預計這些行業挑戰將持續到下半年。因此，在這種環境下，我們將繼續專注於市場的獲利部分以及為我們帶來最高回報的領域，並繼續執行我們降低成本的努力。

To be very clear, we continue to make and execute the appropriate adjustments in our cost base to ensure we make Goodyear Forward objectives in our operating plans. We are already making great progress, and these recent challenges means that we will need to continue to dig deeper. We will continue to execute to continue to achieve our goals.

需要明確的是，我們將繼續對成本基礎進行適當的調整，以確保我們在營運計劃中實現 Goodyear Forward 目標。我們已經取得了巨大進展，最近的這些挑戰意味著我們需要繼續深入挖掘。我們將繼續執行以繼續實現我們的目標。

Moving on to the financials. Our second quarter segment operating income was $339 million and segment operating income margin was 7.4%, which is almost triple the margin we delivered in the second quarter of 2023. EPS on a reported basis increased by over $1. And on an adjusted basis, EPS grew $0.53. Clearly, our execution has been strong.

繼續討論財務狀況。我們第二季的分部營業收入為 3.39 億美元，分部營業利益率為 7.4%，幾乎是我們 2023 年第二季實現的利潤率的三倍。據報告，每股收益成長超過 1 美元。調整後每股收益成長 0.53 美元。顯然，我們的執行力很強。

Our results show strong price mix versus raw materials and stepped-up results on Goodyear Forward savings with two of our business units demonstrating and contributing strong growth in earnings. Americas saw remarkable gains with SOI up nearly $140 million from last year. In the US, our volume performance in the 18 inch and Greater segment was in line with industry.

我們的結果顯示，與原料相比，價格組合強勁，固特異遠期節省的結果也有所增加，我們的兩個業務部門展示並貢獻了強勁的收益成長。美洲市場取得了顯著的成長，SOI 比去年增加了近 1.4 億美元。在美國，我們在 18 吋及以上細分市場的銷售表現與行業水準一致。

It was a different story and smaller rim sizes were imports have taken shelf space as well as liquidity of large distributors around the Americas. Magnifying this challenge, industry sellout in the US retail channel was negative during the quarter and down high single digit to low double digits at the traditional retailers. This instigated heavy promotional activities by other manufacturers at the lower end of the market.

這是一個不同的故事，較小的輪圈尺寸是進口佔用的貨架空間以及美洲各地大型經銷商的​​流動性。放大這項挑戰的是，本季美國零售通路的產業銷售量為負，傳統零售商的銷售量從高個位數下降到低兩位數。這促使其他製造商在低端市場進行大量促銷活動。

We continue to focus on complexity reduction, our platforming as well as looking at the blank spaces in the high end of the market. We are continuing the work in front of us as part of our plan to boost margins. We continue to execute SKU rationalizations, margin enhancement actions to address profitability on low margin, low value products as part of our Goodyear Forward Plan.

我們繼續專注於降低複雜性、我們的平台以及尋找高端市場的空白空間。作為提高利潤計劃的一部分，我們正在繼續我們面前的工作。作為固特異遠期計畫的一部分，我們將繼續執行 SKU 合理化和利潤提高行動，以解決低利潤、低價值產品的獲利問題。

This is important for us as we reach, as we work to reduce, our exposure to the increasingly competitive Tier three and Tier four segments of the market. In Latin America, we experienced some temporary volume softness in the quarter as a result of the changes we're making to distribution as well as the flooding in Brazil that happened early in Q2. Earnings therefore remaining strong, but we continue to feel very good about our market position in Latin America.

這對我們來說很重要，因為我們努力減少對競爭日益激烈的三級和四級市場的暴露。在拉丁美洲，由於我們對分銷做出的改變以及第二季度初發生的巴西洪水，我們在本季度經歷了一些暫時的銷售疲軟。因此，利潤仍然強勁，但我們仍然對我們在拉丁美洲的市場地位感到非常滿意。

In EMEA, results were relatively stable despite an OE industry that contracted 5%. Importantly, we continue to demonstrate industry-leading innovation and product technology. During the second quarter, our Goodyear Vector Gen-3 all season was awarded the test winner by ADAC. This should help drive price and mix for us in this fast-growing segment over the next several quarters.

在歐洲、中東和非洲地區，儘管 OE 產業萎縮了 5%，但業績相對穩定。重要的是，我們繼續展示行業領先的創新和產品技術。在第二季度，我們的固特異 Vector Gen-3 全賽季由 ADAC 授予測試優勝者。這應該有助於在未來幾季推動我們這個快速成長的細分市場的價格和產品組合。

Like in the US, EMEA's lower tier brands and the product lines had been hurt by growth in imports, particularly in Eastern Europe. Over the past quarter, we were able to finalize the required consultations related to our previously announced factory closures in the region, which will help address our cost structure in a EMEA.

與美國一樣，歐洲、中東和非洲地區的低端品牌和產品線也受到進口成長的影響，尤其是在東歐。在過去的季度中，我們完成了與先前宣布的該地區工廠關閉相關的必要磋商，這將有助於解決我們在歐洲、中東和非洲地區的成本結構問題。

Asia Pacific continued to see significant growth in both volume and earnings and turned its third consecutive quarter of SOI margin above 10%. Volume growth was driven by fitment wins in consumer OE market and primarily in the EV, electric vehicle segment. Having said that, the consumer replacement industry in China was weaker than we expected.

亞太地區的銷售和收益持續顯著成長，SOI 利潤率連續第三個季度超過 10%。銷量成長是由消費者原配設備市場（主要是電動車和電動車領域）的組裝勝利所推動的。話雖如此，中國的消費品替代產業弱於我們的預期。

So Asia Pacific continues to set the standard for performance. Turning to Goodyear Forward. It's clear that the speed of execution towards our Goodyear Forward Plan is critical. In SAG, we've made great progress in EMEA with our transition to shared services. We've also just recently announced a plan to open a new shared service center in Costa Rica for the Americas.

因此，亞太地區繼續制定績效標準。轉向固特異前進。顯然，固特異遠期計畫的執行速度至關重要。在 SAG，我們透過向共享服務的過渡，在歐洲、中東和非洲地區取得了巨大進展。我們最近也剛宣布計劃在哥斯達黎加為美洲開設一個新的共享服務中心。

In manufacturing, Christina and I are continuing to meet regularly with our factory leaders reviewing progress against our efficiency plans and making sure any roadblocks are removed. As just one example, the team has been able to achieve record levels of OE yield over the last couple of months. We are cascading our benchmark level performance by process across the world.

在製造業中，克里斯蒂娜和我繼續定期與工廠領導會面，根據我們的效率計劃審查進度情況，並確保消除任何障礙。僅舉一個例子，該團隊在過去幾個月中實現了創紀錄的 OE 良率水準。我們正在世界各地按流程級聯我們的基準水準績效。

We've also implemented tight controls and efficiency tools covering manufacturing and SAG spending, and we are seeing early returns. By June, we achieved a reduction in America's overtime hours of 15%, over 15%. At the same time, we're optimizing our real estate portfolio. And in one example, we reported the sale of valuable piece of property in Germany this quarter. These types of optimizations will continue going forward.

我們還實施了涵蓋製造和 SAG 支出的嚴格控制和效率工具，我們正在看到早期回報。到 6 月份，我們將美國的加班時間減少了 15%，超過 15%。同時，我們正在優化我們的房地產投資組合。在一個例子中，我們報告了本季在德國出售的一處有價值的房產。這些類型的優化將繼續下去。

In R&D, we focused the team on industrializing premium SKUs for the market, executing unconsolidated parts through using common product platforms to address our cost structure on lower tier SKUs.

在研發方面，我們的團隊專注於市場優質 SKU 的工業化，透過使用通用產品平台來執行未合併的零件，以解決較低層 SKU 的成本結構問題。

And finally, in our retail operations, our execution is ahead of plan as we have focused on driving incremental traffic into our base. We're doing this by focusing our retail value proposition with both traditional customer base, and through new last mile fleet customers as well. We are fully committed to Goodyear Forward. We remain confident in delivering our target of 10% SOI margins by the end of next year.

最後，在我們的零售業務中，我們的執行超出了計劃，因為我們專注於推動增量客流量進入我們的基地。為此，我們將零售價值主張重點放在傳統客戶群和新的最後一哩車隊客戶。我們完全致力於固特異前進。我們仍然有信心在明年底實現 10% SOI 利潤率的目標。

Now, I'll turn it over to Christina to take through the second quarter financials, and we'll move on to the Q&A section.

現在，我將把它交給克里斯蒂娜來完成第二季度的財務狀況，然後我們將進入問答部分。

Thank you, Mark. I'll begin with the income statement on slide 8. Sales totaled $4.6 billion, down 6% from last year, driven by lower volume and unfavorable price mix due to continuing weakness in commercial truck sales and OE RMI indexed agreements. Unit volume was 2% lower versus last year. Overall replacement volume declined by 7%, driven by decreases in the Americas.

謝謝你，馬克。我將從投影片 8 上的損益表開始。銷售額總計 46 億美元，比去年下降 6%，這是由於商用卡車銷售和 OE RMI 指數協議持續疲軟導致銷售下降和不利的價格組合所推動的。單位數量比去年減少 2%。由於美洲地區銷量下降，整體更換量下降了 7%。

Original equipment volume increased 13%. Segment operating income for the quarter was $339 million, up $215 million from a year ago. After adjusting for significant items, our earnings per share was up $0.19 and up $0.53 on a year-over-year basis. The year-over-year drivers of our second quarter earnings are shown on slide 9.

原始設備數量增加13%。該季度的部門營業收入為 3.39 億美元，比去年同期增加 2.15 億美元。在對重要項目進行調整後，我們的每股盈餘年增 0.19 美元，年增 0.53 美元。我們第二季收益的年比驅動因素如投影片 9 所示。

The impact of lower tire unit volume was $41 million and factory utilization was a headwind of $35 million. Segment operating income benefited from favorable net price mix versus raw material costs of $99 million. Raw materials were a benefit of $158 million in the quarter. Price mix was negative for the quarter, driven by contractual pricing adjustments with our OE customers.

輪胎單位銷售下降的影響為 4,100 萬美元，工廠利用率則為 3,500 萬美元。部門營業收入受益於有利的淨價格組合（相對於 9,900 萬美元的原料成本）。本季原物料收益為 1.58 億美元。由於與我們的原廠客戶的合約價格調整，本季的價格組合為負值。

Sequential pricing from the first quarter was stable. Goodyear Forward initiatives contributed $90 million in the quarter with benefits driven largely by purchasing initiatives. Inflation was $59 million or about 3%, partly offset by favorable other costs of $34 million, driven by lower transportation. The non-recurrence of the 2023 Tupelo storm was a benefit of $50 million.

第一季的連續定價穩定。固特異前進計畫在本季貢獻了 9,000 萬美元，其效益主要由採購計畫推動。通貨膨脹率為 5,900 萬美元，即 3% 左右，部分被交通運輸下降帶來的 3,400 萬美元的有利其他成本所抵消。2023 年圖珀洛風暴不再復發，帶來了 5,000 萬美元的收益。

Insurance recoveries primarily related to the fire in our Debica facility and the tornado that impacted our Tupelo facility, netted with related current period expenses was a benefit of $63 million. Other SOI of $14 million reflects lower advertising, depreciation and compensation expenses in the quarter.

主要與我們的德比卡工廠火災和影響我們圖珀洛工廠的龍捲風有關的保險賠償，扣除相關當期費用後，收益為 6,300 萬美元。其他 1,400 萬美元的 SOI 反映了本季廣告、折舊和補償費用的減少。

Turning to slide 10. Net debt totaled $7.7 billion at the end of the second quarter, relatively flat with last year. Free cash flow was a use of $346 million during the quarter compared to a cash inflow of $96 million last year. Working capital was a use of cash compared to an unusually strong inflow last year, which reflected the impact of declining raw materials and inventory reductions following the storm related shutdown of our Tupelo factory.

轉到投影片 10。第二季末淨債務總額為 77 億美元，與去年同期持平。本季自由現金流使用量為 3.46 億美元，去年的現金流入為 9,600 萬美元。與去年異常強勁的流入相比，營運資金是現金的使用，這反映了我們的圖珀洛工廠因風暴而關閉後原材料下降和庫存減少的影響。

Moving to our SBU results and starting on slide 12. America's second quarter unit volume decreased 6% or 1.2 million units, driven by replacement volume. While the overall US replacement industry grew slightly during the second quarter, this result was distorted by an 18% increase in low end imports. This year, non-member import volume has reached an all-time high.

轉到我們的 SBU 結果，從投影片 12 開始。由於更換量的推動，美國第二季的銷量下降了 6%，即 120 萬台。儘管美國整體替代產業在第二季略有成長，但低端進口成長 18% 扭曲了這一結果。今年，非會員進口量創歷史新高。

Industry member volume, which primarily is represented by large branded tire companies was lower on a year-over-year basis. In addition, our volume in Latin America declined following deliberate shift in our distribution and higher imports.

主要以大型品牌輪胎公司為代表的產業會員數量較去年同期下降。此外，由於我們有意改變分銷管道和進口量增加，我們在拉丁美洲的銷售量有所下降。

Segment operating income totaled $241 million or nearly 9% of sales, reflecting an increase of $138 million. Americas earnings benefited from the execution of Goodyear Forward initiatives, net price mix versus raw materials recovery from the Tupelo storm and lower transportation rates, which more than offset lower volumes.

部門營業收入總計 2.41 億美元，佔銷售額的近 9%，增加了 1.38 億美元。美洲地區的利潤受益於固特異遠期計劃的執行、淨價格組合與圖珀洛風暴中原材料的恢復以及較低的運輸費率，這些都足以抵消銷量的下降。

Moving to slide 13, EMEA's second quarter unit volume decreased 1% or 200,000 units, driven by replacement. Our volume reflects growth in Western Europe, but declining volumes in the East, particularly in Turkey, following our pricing actions in response to continued hyper inflation in the country.

轉向幻燈片 13，由於更換，歐洲、中東和非洲第二季度的銷量下降了 1%，即 200,000 台。我們的銷售量反映了西歐的成長，但東部地區（尤其是土耳其）的銷售量下降，這是因為我們針對該國持續的惡性通貨膨脹採取了定價行動。

Segment operating income was $35 million and up $54 million from a year ago. Favorable net price mix versus raw materials, insurance recoveries, net of related current period expenses and Goodyear Forward actions more than offset unfavorable fixed overhead absorption and higher inflation.

部門營業收入為 3,500 萬美元，比去年同期增加 5,400 萬美元。與原料相比，有利的淨價格組合、保險賠償（扣除相關當期費用）和固特異遠期行動足以抵消不利的固定管理費用吸收和較高的通貨膨脹。

Turning to Asia Pacific on slide 14. Second quarter unit volume increased 8% or 700,000 units, driven by OE growth in China. Segment operating income totaled $63 million and 10.6% of sales, an increase of $23 million versus prior year. Agent earnings benefited from favorable net price mix versus raw materials, volume and Goodyear Forward initiatives. These benefits were partly offset by higher inflationary costs.

第 14 張投影片轉向亞太地區。受中國原廠設備成長的推動，第二季銷量成長 8%，即 70 萬台。部門營業收入總計 6,300 萬美元，佔銷售額的 10.6%，比前一年增加 2,300 萬美元。代理商的收入受益於相對於原材料有利的淨價格組合、銷售和固特異前進計劃。這些好處部分被通膨成本上升所抵銷。

Turning to our outlook on slide 16. We have revised our full year outlook for unit volume to be more reflective of our first half experience. We expect third quarter global unit volume to be down approximately 4%. In addition, we expect higher unabsorbed fixed costs of $30 million, driven by lower production volume during the second quarter.

轉向我們對幻燈片 16 的展望。我們修改了全年單位銷售展望，以更好地反映我們上半年的經驗。我們預計第三季全球銷量將下降約 4%。此外，由於第二季產量下降，我們預計未吸收固定成本將增加 3,000 萬美元。

Raw materials will increase approximately $50 million, which we expect to offset with improvements in price and mix. Strong execution on a Goodyear Forward will drive approximately $120 million of an SOI benefit during the third quarter. And as Mark mentioned, we've increased our full year outlook for Goodyear Forward, reflecting the great progress we're seeing across each of our work streams.

原材料將增加約 5000 萬美元，我們預計將透過價格和產品組合的改善來抵消。Goodyear Forward 的強勁執行將在第三季帶來約 1.2 億美元的 SOI 收益。正如馬克所提到的，我們提高了固特異前進的全年展望，反映了我們在每個工作流程中看到的巨大進展。

Inflation in other costs are expected to be a net headwind of approximately $16 million, reflecting 3% general inflation in the quarter. Other financial assumptions on slide 17 have also been updated to reflect our most recent expectations.

其他成本的通貨膨脹預計將帶來約 1,600 萬美元的淨阻力，反映出本季 3% 的整體通貨膨脹率。第 17 張投影片上的其他財務假設也已更新，以反映我們最近的預期。

With that, we'll open the line for your questions.

這樣，我們將開通您的提問熱線。

(Operator instructions)

（操作員說明）

John Healy, Northcoast Research.

約翰希利，北海岸研究中心。

John Healy, your line is open. Please check your mute function on your phone. (Operator instructions)

約翰希利，您的線已接通。請檢查您手機上的靜音功能。（操作員說明）

And there appear to be no questions at this time. I'll turn the call to the speakers for any closing remarks.

目前似乎沒有任何問題。我將把電話轉給發言人，讓他們發表結束語。

All right. Thank you, operator. We do have a handful of analysts who are transitioning between jobs and another one out. If you have any questions, we can certainly follow up with us later today and tomorrow. Thank you for joining. Goodbye

好的。謝謝你，接線生。我們確實有一些分析師正在工作和另一份工作之間轉換。如果您有任何疑問，我們當然可以在今天晚些時候和明天與我們聯繫。感謝您的加入。再見

Thank you. And this will conclude today's program. Thank you for your participation. You may disconnect at any time.

謝謝。今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。