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Dec 31, 2021
Goodyear Q4 2021 Earnings Report
Goodyear's Q4 2021 results were released, showcasing revenue growth and increased profitability.
Key Takeaways
Goodyear reported a strong fourth quarter in 2021, achieving its highest Q4 revenue in nearly 10 years, driven by the Cooper Tire merger, improvements in price/mix, increased sales from other tire-related businesses, and higher volume. Net income was $553 million, or $1.93 per share, compared to $63 million, or $0.27 per share, in the prior year. Merger-adjusted segment operating income increased by 32% year-over-year.
Net sales increased by 38% compared to Q4 2020, with 12% growth excluding the Cooper Tire transaction.
Goodyear's net income for the fourth quarter was $553 million, with adjusted net income reaching $162 million.
Merger-adjusted segment operating income rose to $398 million, marking a 32% increase from the fourth quarter of 2020.
Tire unit volumes increased to 48.6 million, up 29% from the previous year's period.
Forward Guidance
Goodyear expects inflationary pressures to persist over the next several quarters and remains focused on executing strategies to capture value in the marketplace and managing costs. The company is pleased with the pace of integration of Cooper Tire and continues to make solid progress toward the increased synergy targets.
Positive Outlook
- Focused on executing strategies to capture value in the marketplace
- Managing costs
- Pleased with the pace of integration of Cooper Tire
- Making solid progress toward the increased synergy targets
- Confident in positioning the business to deliver strong sales and earnings growth over the long-term
Challenges Ahead
- Expects inflationary pressures to persist over the next several quarters
- Higher raw material costs
- Inflationary cost pressures in wages, benefits, transportation and energy
Historical Earnings Impact
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Avg. Return Before/After Earnings
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