Good morning. My name is Ashley, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Goodyear Second Quarter 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After some opening remarks, there will be a question-and-answer session. [Operator Instructions] Please note that this call may be recorded. It is now my pleasure to turn the conference over to Greg Shank, Senior Director, Investor Relations.

Thank you, Ashley. Good morning, and welcome to our second quarter 2024 earnings call. Today on the call, we have Mark Stewart, our CEO and President; and Christina Zamarro, our Executive Vice President and CFO. During this call, we will refer to forward-looking statements and non-GAAP financial measures. Forward-looking statements involve risks, assumptions and uncertainties that could cause actual results to differ materially from those forward-looking statements. For more information on the most significant factors that could affect future results, please refer to slide 20 of the supporting presentation for today's call and our filings with the SEC. These materials can be found on our website at investor.goodyear.com, where a replay of this call will also be available. A reconciliation of non-GAAP financial measures discussed on today's call to the comparable GAAP measures is also included in the appendix of that presentation. With that, I will now turn the call over to Mark.

Thank you, Greg, and good morning, everyone. Welcome to our second quarter earnings call. Thank you for joining us, thank you for your interest in Goodyear. I want to start this morning by saying we are clearly progressing on our goals as part of our Goodyear Forward Plan, and that is true on multiple fronts, as well as in each of our key work streams of the Goodyear Forward Plan. In the second quarter, we achieved significant margin expansion, another strong quarter of year-over-year earnings growth. We have just recently announced the sale our off-the-road OTR business, another important step as part of our overall transformation plan. Having said that, the industry environment in the first half has not been supportive, including downgrades to OEM production levels and significantly more challenging replacement markets, which has been saturated by low-end imports. We're anticipating that the industry challenge will continue through the second half. In that environment, and as a result, we will continue to focus on profitable volume segments of the market as well as the areas that are generating the highest return for us, as well as continuing the execution of our cost reduction efforts. To be very clear, we continue to make and execute the appropriate adjustments in our cost base to ensure we make good year forward objectives and our operating plans. We are already making good progress and these recent challenges means that we will need to continue to dig deeper. We will continue to execute to continue to achieve our goals. Moving on to the financials. Our second quarter segment operating income was $339 million and segment operating income margin was 7.4%, which is almost triple the margin we delivered in the second quarter of 2023 EPS on a reported basis increased by over $1, and…

Thank you, Mark. I'll begin with the income statement on Slide 8. Sales totaled $4.6 billion, down 6% from last year, driven by lower volume and unfavorable price mix due to continuing weakness in commercial truck sales and OE RMI index agreements. Unit volume was 2% lower versus last year. Overall, replacement volume declined by 7%, driven by decreases in the Americas. Original equipment volume increased 13%. Segment operating income for the quarter was $339 million, up $215 million from a year ago. After adjusting for significant items, our earnings per share was up $0.19 and up $0.53 on a year-over-year basis. The year-over-year drivers of our second quarter earnings are shown on Slide 9. The impact of lower tier unit volume was $41 million and factory utilization was a headwind of $35 million. Segment operating income benefited from favorable net price mix versus raw material costs of $99 million, raw materials were a benefit of $158 million in the quarter. Price/mix was negative for the quarter, driven by contractual pricing adjustments with our OE customers. Sequential pricing from the first quarter was stable. Goodyear Forward initiatives contributed $90 million in the quarter, with benefits driven largely by purchasing initiatives. Inflation was $59 million or about 3%. This was partly offset by favorable other costs of $34 million, driven by lower transportation. The non-recurrence of the 2023 Tupelo storm was a benefit of $50 million. Insurance recoveries, primarily related to the fire in our Dębica facility and the tornado that impacted our Tupelo facility, netted with related current period expenses was a benefit of $63 million. Other SOI of $14 million reflects lower advertising, depreciation and compensation expenses in the quarter. Turning to Slide 10. Net debt totaled $7.7 billion at the end of the second quarter, relatively flat with…

I'll turn the call to speakers for any closing remarks.

All right. Thank you, operator. We do have a handful of analysts who are transitioning between jobs and another one out. If you have any questions, we can certainly follow up with us later today and tomorrow. Thank you for joining. Goodbye.

Thank you. And this will conclude today's program. Thank you for your participation. You may disconnect at any time.