Goodyear reports $4.9 billion is sales for first quarter

Akron, OH – The Goodyear Tire & Rubber Company reported results for the first quarter of 2022. “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, chief executive officer 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’s first quarter 2022 sales were $4.9 billion, up 40% from a year ago. The increase was driven by the Cooper Tire merger, improvements in
price/mix, higher volume, and increased sales from other tire-related businesses. Tire unit volumes totaled 45.0 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. There were several significant items in the period, 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. Per share amounts are diluted.

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.