Cooper Tire purchase helps drive Goodyear revenue to highest level in a decade
Goodyear's purchase last year of Cooper Tire is paying off.
Goodyear Tire & Rubber Co. on Friday reported its highest first-quarter revenue in a decade.
The Akron tire maker had $4.9 billion in sales for the first quarter ending March 31, up 40% from $3.5 billion a year ago. Net income was $96 million, or 33 cents per share, up from $12 million, or 5 cents a share, for the first quarter of 2021. Adjusted income for the 2022 first quarter was $105 million, or 37 cents per share, compared to $102 million, or 43 cents per share, a year ago.
Done deal: Goodyear now owns Cooper Tire as $2.8 billion purchase is completed
The higher revenue was driven by Cooper Tire, which added about $870 million in revenue in the quarter, and other factors that included increased sales from tire-related businesses, Goodyear said. Goodyear paid $2.8 billion to buy the Ohio tire manufacturer.
Goodyear reported its results before the stock market opened Friday.
Shares fell during the day. Goodyear stock was down $1.19, or 8.8%, to $12.21 as of 2:18 p.m. Shares over the past 52 weeks have ranged from a low of $11.64 to a high of $24.89.
Revenue up at Goodyear despite supply chain disruptions
“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,” Richard J. Kramer, chairman, chief executive officer and president of Goodyear, said in a news release. “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%."
Tire unit volumes totaled 45 million, up 29% from a year ago. Replacement tire sales were up 35%, with original equipment tire sales up 9%. The increases reflect the addition of Cooper Tire and market share gains, the company said.
Americas segment increases
Tire unit volume in North America and South America, which Goodyear calls its Americas segment, totaled 22.2 million, up from 15.5 million a year ago.
Globally, revenue per tire was up 17% from a year ago, while revenue per tire in the Americas was up 20%. Kramer said that shows Goodyear is coping with inflationary price pressures that include higher raw material costs.
Sales in the Americas segment totaled $2.9 billion, up 63% from a year ago. Replacement tire units in the Americas were up 55% from a year ago, with original equipment tire unit volume up nearly 5% despite supply chain issues.
Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.
This article originally appeared on Akron Beacon Journal: Goodyear capitalizes on Cooper Tire deal with highest revenue in years
