AKRON — Goodyear continued to grow in the fourth quarter though at a slower pace amid weaker overall volume demand and challenges in Europe.
Net sales grew 6% compared with fourth quarter of 2021 to $5.37 billion. Growth would have been 13% excluding foreign currency, the company noted in a letter to investors posted after markets closed on Feb. 8.
The company said that while unit volume was down 3% versus 2021, revenue per tire was up 17% versus the same period in 2021. Goodyear reported a net loss of $104 million (compared with $553 million of income in prior year); and adjusted net income of $20 million (compared to $162 million in prior year).
Segment operating income was $236 million, down 39.6% versus $391 million in prior year.
Among the positives of the quarter, Goodyear noted a strong price mix of $722 million; further benefit of the Cooper Tire & Rubber Co. integration; and improved input costs.
Net income for the fiscal year fell 74.2% to $202 million on 19% higher sales of $20.8 billion. Segment operating income was down slightly to $1.28 billion, or 6.1% of sales.
The company said outside of the Europe, Middle East and Africa (EMEA) market, the price-mix has offset increases in raw materials and other costs. In America, Goodyear said volumes remained strong in a weaker market.
"While the strong revenue per tire and market share gains that carried us through most of 2022 continued during the fourth quarter, they were not enough to offset weaker industry conditions and a quarterly high point of inflationary cost increases," Rich Kramer Goodyear CEO, said. "As a result, operating results moderated, especially in our EMEA region, where these conditions were felt most acutely."
Goodyear said impacts in Europe included industry volume, weaker winter/summer mix amid warmer weather, cost inflation, and higher inventory and working capital.
"While industry volume and the height of inflationary cost conditions combined to create a very challenging setup in the fourth quarter, I am encouraged by recent developments as we look ahead. In particular, raw material and other input costs have moderated recently, which should provide some relief as the year progresses if current trends continue," Kramer said.
Goodyear will host call with analysts on Feb. 9 at 8:30 a.m. EST. Those on the call from Goodyear will be Kramer; Christina L. Zamarro, executive vice president and chief financial officer; and Darren R. Wells, executive vice president and chief administrative officer.
