Goodyear sets up transformation office after third-quarter loss and revenue miss

Chief executive Mark Stewart says incremental improvements alone were not enough to deliver more consistent free cash flow.

Goodyear lost $0.11 a share in the third quarter, $0.11 worse than expected. Revenue of $4.54B fell short of the $4.63B forecast.

Mark Stewart, the chief executive and president, said the company has established a dedicated transformation office to pursue broader operational and strategic changes. The aim is more consistent free cash flow. Incremental improvements alone proved insufficient amid persistent industry challenges, he said.

That looks like management concluding that small fixes will not repair cash generation. It also sets the yardstick. Free cash flow, unlike one quarter's earnings, can be followed over several reporting periods.

The miss on sales comes after a second quarter in which Goodyear beat on revenue, at $4.25B against $4.19B expected. The changes ahead are described only in general terms, so the next earnings calls are where their scope and pace would show.