Goodyear sales significantly up after Cooper merger completed

Goodyear has increased operating income considerably in the second quarter of 2021, thanks in part to its merger with Cooper Tire, completed on 7 June. Net income totalled $67 million (£48.45 million at today’s exchange rate $1.00 = £0.72) versus a loss of $696 million (£503 million). Second-quarter sales were $4 billion (£2.89 billion), a rise of 86 per cent versus the second quarter of 2020, which was heavily affected by the Covid-19 pandemic. In the year to date, Goodyear has sold 40 per cent more tyres than in the same period of 2020, with both replacement tyres (41 per cent) and original equipment tyres (39 per cent) assisting in this rise. Cooper sales between the merger completion date and 30 June (the end of the second quarter) totalled $256 million (£185 million). This figure excludes calculations relating to Cooper inventory and assets.

“We delivered merger-adjusted segment operating income significantly above last year and nearly 60 per cent higher than second quarter 2019,” said Richard J Kramer, chairman, chief executive officer and president. “Our strong results reflect continued recovery in demand, including above-market growth across many of our businesses. In addition, the execution of our strategies helped deliver the highest quarterly contribution of price / mix in nine years.”

“Broad economic recovery remains robust, particularly in the US and China,” continued Kramer. “Our second quarter results demonstrate our ability to capture value in the marketplace with innovative products and services while overcoming inflationary cost pressure.”

“The addition of Cooper Tire in early June also contributed to our strong merger-adjusted earnings growth, and we welcome all of our new colleagues to the Goodyear family. Our teams are now focused on integrating our businesses and leveraging the combination to provide enhanced service for our customers and consumers.”

Goodeyear’s second quarter in EMEA

In Goodyear’s Europe, Middle East and Africa segment, net sales rose 82 per cent versus the 2020 period to $1.2 billion in the second quarter of 2021. The manufacturer sold 63 per cent more tyres (12 million versus 7.3 million), with both replacement market (52 per cent up) and original equipment (112 per cent up) channels contributing strongly. These figures reflect the sudden fall in car miles driven and temporary factory shutdowns that characterised the early stages of the Covid-19 pandemic in EMEA.

Operating income hit $43 million in the region, up $153 million thanks to the higher volume, increased factory utilisation and improvements in price/mix, according to Goodyear.

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