Goodyear Says Tire Sales Rebound
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Goodyear on Nov. 5 said strong replacement tire sales, its Cooper Tire acquisition and a rebound from pandemic lows in 2020 helped drive higher third-quarter revenue and net income.
The Akron, Ohio-based tire maker reported net income of $132 million, or 46 cents per share, on sales of $3.9 billion for the quarter ending Sept. 30. That compares with a loss of $2 million, 1 cent, on revenue of nearly $3.5 billion a year ago.
Adjusted third-quarter net income was $206 million, 72 cents per share, compared with $24 million, 10 cents, a year ago.
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“We continued to capitalize on favorable industry trends in our key replacement markets,” CEO Richard J. Kramer said in a news release. “Overall consumer replacement demand remains robust, and our business continues to have momentum.”
The company was able to more than offset inflationary pressures, he said.
“With the transportation industry moving record freight volume, we also saw robust demand from our largest commercial customers,” Kramer said. “In addition to positive trends in our business, we also expect to benefit from increased synergies as a result of our combination with Cooper Tire, which include added international initiatives and manufacturing and sales opportunities.”
Tire unit volumes totaled 48.2 million, up 32% from the third quarter of 2020. Replacement tire unit volume were up 44%, reflecting Cooper Tire sales plus continuing industry recovery and market share gains, Goodyear said. Original equipment unit volume fell 7%, reflecting lower vehicle production caused by automaker shortages of components and materials.
Goodyear had net income of $211 million, or 82 cents per share, on revenue of $12.4 billion for the first nine months of fiscal 2021. That compares with a loss of $1.3 billion, minus $5.62 a share, on revenue of $8.7 billion for the same nine-month period in 2020.
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