The Goodyear Tire & Rubber Company release its first-quarter financial report Friday reporting a 40% increase in sales from a year ago, with 2022 Q1 sales at $4.9 billion. Goodyear says the increase was driven by the Cooper Tire merger, improvements in price/mix, higher volume and increased sales from other tire-related businesses.
“We delivered our highest first-quarter revenue in 10 years despite ongoing supply chain disruptions, impacts from geopolitical issues in Europe and increasing COVID-19 restrictions in China,” said Richard J. Kramer, chairman, CEO and president.
“Moreover, with the addition of Cooper Tire and the benefit of strong pricing actions across our key markets, our merger-adjusted segment operating income grew nearly 40%. I am extremely proud of our teams who continue to deliver excellent results in the face of new challenges.”
Goodyear reported tire unit volumes totaling 45 million, up 29% from the prior year’s period. Replacement and original equipment tire unit volume increased 35% and 9%, respectively, reflecting the addition of Cooper Tire unit volume and market share gains.
Goodyear’s first quarter 2022 net income was $96 million (33 cents per share) compared to net income of $12 million (5 cents per share) a year ago, the company reported. Several significant items influenced this including, on a pre-tax basis, rationalization charges of $11 million. First-quarter 2022 adjusted net income was $105 million compared to adjusted net income of $102 million in the prior year’s quarter. Adjusted earnings per share were $0.37, compared to $0.43 in the prior year’s quarter, driven by increased taxes and interest expense, Goodyear said.
The company reported segment operating income of $303 million in the first quarter of 2022, up $77 million from a year ago. The company also reported merger-adjusted segment operating income of $311 million, which excludes incremental amortization of Cooper Tire intangible assets. The increase in segment operating income primarily reflects improvements in price/mix, the Cooper Tire merger and impacts of higher volume, including increased factory utilization. These factors were partially offset by higher raw material costs and inflationary cost pressures in transportation, wages, benefits and energy, Goodyear said.
Americas’ first quarter 2022 sales of $2.9 billion were 63% higher than in 2021, driven by the Cooper Tire merger, improvements in price/mix, and increased sales from other tire-related businesses. Tire unit volume increased 44%. Replacement tire unit volume increased 55%. Original equipment unit volume increased almost 5% despite ongoing customer supply chain challenges, driven by the addition of Cooper Tire’s units.
First-quarter 2022 segment operating income of $216 million was up $102 million from the prior year’s quarter. The increase was driven by improvements in price/mix and the Cooper Tire merger. These factors were partially offset by higher raw material costs and inflationary cost pressures in wages, benefits and transportation.