The Goodyear Tire & Rubber Company (NASDAQ:GT) Q4 2018 Earnings Conference Call Transcript

Feb 08, 2019 • 09:00 am ET

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The Goodyear Tire & Rubber Company (NASDAQ:GT) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Keith and I will be your conference operator today. At this time, I'd like to welcome everyone to the Goodyear Fourth Quarter and Full Year 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions)

I will now hand the program over to Nick Mitchell; Goodyear's Senior Director of Investor Relations. Please go ahead.

Executive
Nicholas Mitchell

Thank you, Keith. And thank you everyone for joining us for Goodyear's fourth quarter 2018 earnings call. I'm joined here today by Rich Kramer, Chairman and Chief Executive Officer; and Darren wells, Executive Vice President and Chief Financial Officer.

The supporting slide presentation for today's call can be found on our website at investor.goodyear.com, and a replay of this call will be available later today. Replay instructions were included in our earnings release issued earlier this morning.

If I could now draw your attention to the Safe Harbor statement on Slide 2. I would like to remind participants on today's call that our presentation includes some forward-looking statements about Goodyear's future performance. Actual results could differ materially from those suggested by our comments today. The most significant factors that could affect future results are outlined in Goodyear's filings with the SEC and in our earnings release.

The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Our financial results are presented on a GAAP basis and, in some cases, a non-GAAP basis. The non-GAAP financial measures discussed on the call are reconciled to the U.S. GAAP equivalent as part of the appendix to the slide presentation.

And with that, I'll now turn the call over to Rich.

Executive
Richard J. Kramer

Thank you, Nick and good morning everyone. During today's call, I'll review our full year performance in the context of industry conditions that are affecting our business units. I'll also discuss several initiatives for 2019 that are designed to strengthen our connected business model. Darren will follow with a detailed financial review of the quarter and share thoughts on how we are thinking about the business going forward.

First, let me start by saying , I'm not satisfied with our overall performance in 2018 while higher raw materials, a strong U.S. dollar and industry volatility in China negatively impacted our results. Our operational execution was below my expectations for our team and of our capability as demonstrated by past performance. The realities of today's challenging macro backdrop mean that we need to intensify our focus on factors that we can control, including our expenses in cash flows. However, it's also important to ensure that we are running the business for the long-term. We are exceeding our performance from the previous cycle, despite a challenging environment. This is confirmation that our strategy is working and that our investments are strengthening our competitive position in the market, helping us deliver higher highs and higher lows