AKRON – Goodyear Achieved Net Sales Growth of 42% in Q3 Compared to 2020; 16% growth excluding Cooper Tire transaction, the company said in its third quarter income statement.
The company said its global volume of consumer replacement continued to overtake the industry, thanks to large rim diameter tires.
“We have continued to capitalize on favorable industry trends in our key replacement markets,” said Richard Kramer, President and CEO and President. “Overall consumer replacement demand remains robust and our business continues to grow. We achieved our best price / mix in nearly a decade, more than offsetting inflationary pressures and delivering strong earnings performance.
Goodyear sales in the third quarter of 2021 were $ 4.9 billion, up 42% from a year ago. The increase is due to the Cooper Tire merger, improved price / mix, increased sales of other tire related businesses and increased volumes.
“Along with the record freight volume in the transportation industry, we have also seen strong demand from our largest commercial customers. As a result, our business activity had another strong quarter, with fleet tire volume well above pre-pandemic levels, ”said Mr. Kramer.
Unit tire volumes totaled 48.2 million, up 32% from the previous year period. Replacement tire unit volume increased 44%, reflecting the addition of Cooper Tire’s unit volume, continued industry recovery and market share gains. The volume of original equipment units fell 7%, reflecting a decline in vehicle production, which continued to be affected by shortages of components and materials.
“In addition to the positive trends in our business, we also expect to benefit from increased synergies from our merger with Cooper Tire, which includes additional international initiatives and manufacturing and sales opportunities,” said Kramer.
Goodyear’s third quarter 2021 net income was $ 132 million, compared to a net loss of $ 2 million a year ago. The 2021 period included several significant items, Goodyear said, including, on a pretax basis, the amortization related to Cooper Tire’s inventory increase adjustments of $ 72 million. Adjusted net income for the third quarter of 2021 was $ 206 million, compared to adjusted net income of $ 24 million in the prior year quarter.
The company reported segment operating income of $ 372 million in the third quarter of 2021, up $ 210 million from a year ago.
The company also reported merger-adjusted segment operating profit of $ 449 million, which excludes certain costs triggered by the Cooper Tire merger. The increase in segment operating income mainly reflects improved price / mix, higher volume impacts including increased plant utilization and higher profits from other tire related businesses, said the society.
These factors were partially offset by rising raw material costs, the non-recurrence of the benefits of temporary cost reductions when closing last year’s pandemic, and inflationary pressures on the costs of wages, salaries and wages. social benefits, transport and energy.
Reported results also include operating income of $ 48 million from Cooper Tire, which includes $ 70 million of amortization of Cooper Tire’s inventory increase adjustments and $ 7 million of additional amortization of intangible assets. by Cooper Tire.