AKRON — Aided to a considerable degree by its mid-2021 acquisition of Cooper Tire & Rubber Co., Goodyear returned to the black in fiscal 2021 on 41.9% higher sales.
Goodyear reported operating income of $1.3 billion on sales of $17.5 billion, yielding a 7.4% operating ratio. Goodyear cited the positive effects of the Cooper Tire merger, higher volume, improvements in price/mix and increased sales from other tire-related businesses for the improvements.
Net income was $764 million, reversing a net loss of $1.25 billion a year ago.
Tire unit volume for the year rose 34% to 169.3 million units, benefiting from additional volume from Cooper Tire, although the company did not specify to what degree.
Replacement tire shipments increased 41%, reflecting stronger industry demand and improved market share, Goodyear said. Original equipment volume increased 13%, driven by higher global vehicle production in the second quarter and market share gains.
Commenting on the results, Goodyear Chairman, President and CEO Richard Kramker said Goodyear expects inflationary pressures to persist over the next several quarters but "remains focused on executing strategies to capture value in the marketplace and managing our costs."
Goodyear is "pleased" with the pace of its integration of Cooper Tire, he added, noting the firm is making "solid progress toward the increased synergy targets we shared in November.
"I am confident we have positioned our business to deliver strong sales and earnings growth over the long-term."
Goodyear's business in the Americas leapt 53.3% to $10.1 billion, based in large part on the sale of 29.2 million more units than in 2020.
