Why did GT underperform forecasts in 2024?

The Goodyear Tire & Rubber Company (NASDAQ: GT) underperformed forecasts in 2024 due to a combination of factors:

1. **Declining Sales and Negative Earnings**: Despite improvements in cost-cutting initiatives and profitability, Goodyear reported a decline in revenue, with sales slipping to $4.8 billion from $5.1 billion, and a net loss of $34 million, compared to a loss of $84 million in the prior-year period. This decline in sales, driven by lower tire volume and unfavorable price mix, was a significant factor in the underperformance.
2. **Cost-Cutting Initiatives**: While Goodyear's cost-cutting initiatives showed progress, with operating profit margin improvements and gross margin benefiting from favorable net price mix, these improvements may not have been sufficient to offset the negative impacts of declining sales and unfavorable market conditions.
3. **Strategic Initiatives**: The company's strategic advancements, such as the "Goodyear Forward" initiative and changes to the distribution strategy in Australia, took time to show their full impact, which may have affected the company's performance in the short term.
4. **Market Conditions and Competition**: The tire industry is highly competitive, and Goodyear faced challenges from market conditions, including a weak commercial truck industry and contractual pricing pressures, which likely contributed to the underperformance.

In conclusion, Goodyear's underperformance in 2024 was likely a result of a combination of declining sales, negative earnings, cost-cutting initiatives, strategic initiatives, and challenging market conditions.