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August 9, 2021

Goodyear posts Q2 net income of US$67m

Tyre supplier Q2 net incomes surges on demand recovery.

By Simon Warburton

Goodyear has recorded second-quarter 2021 net income of US$67m, compared to a net loss of US$696m a year ago.

“We delivered merger-adjusted segment operating income significantly above last year and nearly 60% higher than second-quarter 2019,” said Goodyear chairman, CEO and president, Richard Kramer.

“Our strong results reflect continued recovery in demand, including above-market growth across many of our businesses. In addition, the execution of our strategies helped deliver the highest quarterly contribution of price/mix in nine years.

“Broad economic recovery remains robust, particularly in the US and China. Our second quarter results demonstrate our ability to capture value in the marketplace with innovative products and services while overcoming inflationary cost pressure.

“The addition of Cooper Tire in early June also contributed to our strong merger-adjusted earnings growth and we welcome all of our new colleagues to the Goodyear family. Our teams are now focused on integrating our businesses and leveraging the combination to provide enhanced service for our customers and consumers.”

Goodyear’s second quarter 2021 sales were US$4bn, up 86% from a year ago. The increase was driven by higher volume, the Cooper Tire merger, increased sales from other tyre-related businesses and favourable foreign currency translation.

Tyre unit volumes totalled 37.5m, up 84% from the prior year period. The impact of the COVID-19 pandemic on industry demand moderated significantly relative to the prior year.

Replacement tyre volume increased 78%, reflecting both continuing industry recovery and market share gains. Original equipment unit volume increased 109%, driven by higher vehicle production and increased market share. 

Volume growth also benefited from the Cooper Tire merger, which closed on 7 June, 2021

Year-to-date results:

Goodyear’s sales for the first six months of 2021 were US$7.5bn, a 44% increase from the 2020 period, primarily due to higher volume, the Cooper Tire merger, increased sales from other tyre-related businesses and favourable foreign currency translation. 

Net income was US$79m for the first six months of 2021, compared to a net loss of US$1.3bn in the prior year period.

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