Goodyear drives highest sales bounce in decade

Goodyear has recorded its highest sales rise in a decade due to the $2.8 billion (£2.3 billion) purchase of rival Ohio business Cooper Tire.

The American motor staple’s second quarter sales bounced to $5.2 billion, up 31% from a year ago.

It added that improvements in price and mix of product, higher volume, and increased sales from other tire-related businesses, had added to the upswing in purchases. It also added that it had continued to increase  earnings despite “elevated inflation and Covid-related disruptions in China”.

“Our second quarter and first half sales were the highest in a decade, reflecting the recent addition of Cooper Tire, the benefit of strong pricing actions across many of our key markets, and volume growth,” said Richard J. Kramer, boss of Goodyear.

Tire units sold totalled 45.6 million, up 21% from the prior year’s period. Replacement and original equipment tire unit volume increased 23% and 17%, respectively, with the addition of Cooper Tire unit volume and growth.

The company’s second quarter income was $166 million (58 cents per share) compared to net income of $67 million (27 cents per share) a year ago.

This included $95 million on a sale and leaseback transaction related to retail properties and a gain of $14 million related to a tariff-rate change that was partially offset by rationalisation charges to introduce financial efficiencies of $26 million and pension settlement charges of $18 million.

At the time of the Cooper acquisition, Kramer said that the combination of the two companies would strengthen Goodyear’s ability to serve more consumers globally, and provide increased scale to support greater investments.