AKRON—Goodyear saw a loss of more than $1 billion in 2020, mostly in non-cash charges, but said its fourth quarter results were strong at the end of a challenging year.
The Akron-based company lost $1.25 billion, or $5.35 per diluted share, on revenue of $12.3 billion in 2020. This compares with a loss of $311 million, or $1.33 per diluted share, on sales of $14.8 billion in 2019.
Fourth quarter results show a profit of $63 million on revenue of $3.66 billion. That compares with a loss of $392 million on sales of $3.71 billion during the fourth quarter of 2019.
"We delivered strong performance to end a challenging year," CEO Richard J. Kramer said in a statement. "With a determination to win with our products in the marketplace and a relentless focus on cost and cash, we finished the year on a high note."
The 2020 impact of COVID-19 was felt throughout the economy, and Goodyear was no exception.
Goodyear sold a total of 126 million tires last year, down 19 percent from the previous year. That includes a decrease of 17 percent in replacement tires and a 23-percent decline in original equipment tires, the company said.
Non-cash charges included what the company called "several significant items" including a $295 million charge related to deferred tax assets on foreign tax credits, a $182 million charge involving goodwill in the company's business in Europe, the Middle East and Africa, and a $148 million charge "to reduce the carrying value of an equity interest in TireHub."
Goodyear also took a $159 million in rationalization charges, primarily surrounding the closure of the company's Gadsden, Ala., tire plant. There also was a $205 million charge primarily related to plans to modernize two plants in Germany.
Adjusting for charges, the company's loss was $448 million, compared with adjusted earnings of $253 million for 2019.
Goodyear said its business generated cash flow from operations of $1.1 billion for 2020. It made $647 million in capital expenditures, down from $770 million in 2019.