AKRON—Buoyed by the first-time inclusion of business generated by its Cooper Tire & Rubber subsidiary, Goodyear reported double-digit growth in both sales and earnings for the quarter ended March 31.
Segment operating income grew 33 percent over the 2021 period to $311 million on 39.8 percent higher sales of $4.91 billion, the company's highest quarterly revenue in a decade. Cooper Tire's sales accounted for about half of the increase.
The operating ratio stands at 6.2 percent, down slightly from a year ago. Net income grew eightfold to $96 million.
"We delivered our highest first quarter revenue in 10 years despite ongoing supply-chain disruptions, impacts from geopolitical issues in Europe and increasing COVID-19 restrictions in China," Goodyear Chairman, President and CEO Richard Kramer said.
"Moreover, with the addition of Cooper Tire and the benefit of strong pricing actions across our key markets, our merger-adjusted segment operating income grew nearly 40 percent."
Goodyear cited improvements in price/mix, the Cooper Tire merger and impacts of higher volume, including increased factory utilization, for the increase in segment operating income.
Offsetting the improvements were higher raw material costs and inflationary cost pressures in transportation, wages, benefits and energy.
Tire unit volumes grew 29.7 percent over 2021 to 45.million Replacement and original equipment tire unit volume increased 35 percent and 9 percent, respectively, reflecting the addition of Cooper Tire unit volume and market-share gains, Goodyear said.
The company noted that revenue per tire grew 17 percent over the same period a year ago, reflecting in part price increases enacted throughout the year.
In the Americas business unit, Goodyear reported a near doubling in operating income to $216 million on 63.2 percent higher sales of $2.92 billion. Goodyear cited the impact of the Cooper Tire merger, improvements in price/mix, and increased sales from other tire-related businesses for the improvements.
Tire unit volume increased 43.2 percent to 22.2 million units. Replacement tire unit volume increased 55 percent, driven by the addition of Cooper Tire's business and despite ongoing supply-chain challenges. OE unit volume increased by almost 5 percent.
Goodyear did not issue a forecast for fiscal 2022.