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Sep 30, 2021
Goodyear Q3 2021 Earnings Report
Goodyear's performance was driven by the Cooper Tire merger, improvements in price/mix, increased sales from other tire-related businesses and higher volume.
Key Takeaways
Goodyear reported a net sales growth of 42% compared to Q3 2020, with a net income of $132 million and an adjusted net income of $206 million. Merger-adjusted segment operating income reached $449 million, and global consumer replacement volume continued to exceed industry levels.
Net sales increased by 42% compared to the third quarter of 2020, with 16% growth excluding the Cooper Tire transaction.
Goodyear's net income was $132 million, with an adjusted net income of $206 million.
Merger-adjusted segment operating income amounted to $449 million.
Global consumer replacement volume continued to surpass industry levels, driven by large-rim diameter volume.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company anticipates a benefit of $250 million in run-rate synergies by mid-2023 and expects to realize approximately $20 million of these savings in 2021. The combination is expected to generate net present value of $450 million or more by utilizing Goodyear’s available U.S. tax attributes. The company also continues to expect $250 million in one-time working capital benefits.
Positive Outlook
- Anticipates a benefit of $250 million in run-rate synergies by mid-2023
- Expected to realize approximately $20 million of these savings in 2021.
- Combination is expected to generate net present value of $450 million or more by utilizing Goodyear’s available U.S. tax attributes.
- Expected to reduce the company’s cash tax payments, positioning it to generate additional free cash flow.
- Continues to expect $250 million in one-time working capital benefits.
Challenges Ahead
- Impact of the COVID-19 pandemic
- Delays or disruptions in our supply chain or the provision of services to us
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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