AKRON — Goodyear is on target to achieve $250 million in synergy cost savings by mid-2023 from the integration of Cooper Tire & Rubber Co., roughly 50% greater than envisioned when the deal was announced in early 2021.
At the same time, Goodyear told shareholders and the investment community this week that the integration of Cooper Tire was "largely completed" during the first quarter with the successful migration of the companies' human resources and enterprise resource planning activities to a common platform.
With these actions successfully achieved, Goodyear said its business is "well positioned" for margin expansion and sustainable value creation, including the ability to "to fully capture the benefits of our announced run-rate cost synergies to $250 million by the second quarter of this year."
Goodyear also pointed out it has reconfigured the companies' brand portfolios, creating an "unmatched" product offering across its customers' and consumers' value spectrum, along with leveraging its TireHub distribution and Goodyear retail networks with our combined product portfolio."
Goodyear disclosed the update in its first quarter earnings results, which revealed a 50% drop in operating income and a $101 million net loss.
As for the synergy cost savings, Goodyear attributed the difference between the figures principally to manufacturing and sales opportunities. Among the actions Goodyear said contributed to the savings are:
- Consolidated sales and support organizations;
- Combined research and development functions;
- Exited "duplicative" assets; and
- Transitioned certain Cooper Tire executives to "key roles" in the integrated organization;
These actions and others resulted in 900 job cuts across multiple disciplines.