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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.
Goodyear
Goodyear
Goodyear Revenue by Segment
Goodyear Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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
- Inflationary cost pressures
- Changes in tariffs, trade agreements or trade restrictions
- Increases in the prices paid for raw materials and energy
Revenue & Expenses
Visualization of income flow from segment revenue to net income