AKRON—Shares of Akron-based Goodyear got hammered in trading on Jan. 15 after it reported in a Securities and Exchange Commission filing that it was delivering some disappointing performance updates at the Detroit Auto Show.
Company representatives were set to present at conferences Jan. 15 and 16, and Goodyear warned in an 8K filing that the news wouldn't be good.
The company told anlaysts at a Deutsche Bank conference in Detroit that it likely won't meet expectations for operating income of $1.3 billion in 2019, though it did not give a new number in its filing with the SEC.
"As part of those presentations, the company will announce that fourth quarter of 2018 tire unit volumes declined by approximately 3 percent due to (1) continued weakening of the (original equipment) environment in China and India, (2) declines in the winter tire market in Europe late in the quarter and (3) supply constraints on volume for high-value-added consumer and commercial truck tires in the U.S.," the company stated in the filing.
On top of that, earnings fell in other tire-related business—"including with respect to the company's U.S. chemical operations," the company reported, causing Goodyear to adjust its guidance.
The filing and the presentations apparently were enough to send many investors to the exits, and Goodyear's stock price fell 13 percent to $19 a share at the close of trading on the 15th.
Some of the issues are not new for Goodyear, which has faced similar challenges in some of its markets for some time.
Nor is the downward trend in its stock price a new development. Just a little less than a year ago, last January, Goodyear was trading at $35 per share.
The price drop of Jan. 15 took place when the market was up slightly, by 77 points, about 0.3 percent, while other major tire makers such as Bridgestone Corp. and Group Michelin were mostly trading flat.