fbpx

Goodyear Unveils 2021 Q1

Autosphere » Tires » Goodyear Unveils 2021 Q1
Americas’ first-quarter 2021 sales of $1.8 billion were 7% higher than in 2020, driven by higher volume and improvements in price/mix. These factors were partially offset by unfavorable foreign currency translation. PHOTO Goodyear

Goodyear Tire reported results for the first quarter of 2021 with sales up 15% from a year ago at $3.5 billion.

The increase was driven by higher volume, improvements in price/mix and favourable foreign currency translation.

“We delivered impressive segment operating income, which was significantly above first-quarter 2020 results and also nearly 20% higher than first -quarter 2019 despite sales volumes not yet having fully recovered to pre-COVID levels,” said Richard J. Kramer, Chairman, Chief Executive Officer and President.

Tire unit volumes totaled 35.0 million, up 12% from the prior year’s period.

The impact of the COVID-19 pandemic on industry demand moderated relative to the prior year. Replacement tire volume increased 14%, reflecting both continuing industry recovery and market share gains.

Original equipment unit volume increased 5%, driven by higher vehicle production in Asia Pacific and increased market share in EMEA.

Goodyear’s first-quarter 2021 net income was $12 million (5 cents per-share) compared to a net loss of $619 million ($2.65 per-share) a year ago.

The 2021 period included several significant items, including, on a pre-tax basis, rationalization charges of $50 million primarily associated with a plan to reduce selling, administrative and general expense in EMEA and the modernization of two manufacturing facilities in Germany, and a negative impact of $23 million related to a severe winter storm in the U.S.

Goodyear’s first-quarter 2020 net loss included a charge of $295 million related to a valuation allowance on certain deferred tax assets for foreign tax credits and, on a pre-tax basis, a non-cash impairment charge of $182 million to reduce the carrying value of goodwill in its EMEA business unit.

The first-quarter 2021 adjusted net income was $102 million (43 cents per-share) compared to an adjusted net loss of $140 million (60 cents per- share) in 2020. Per-share amounts are diluted.

The company reported a segment operating income of $226 million in the first-quarter of 2021, up to $273 million from a year ago.

The increase primarily reflects the impacts of higher volume, including increased factory utilization, improvements in price/mix, the benefits of cost saving actions, including ongoing rationalization plans, and lower raw material costs.

Americas
  • Americas’ first-quarter 2021 sales of $1.8 billion were 7% higher than in 2020, driven by higher volume and improvements in price/mix. These factors were partially offset by unfavourable foreign currency translation.
  • Tire unit volume increased 7%.
  • Replacement tire volume increased 11%, reflecting stronger industry demand and U.S. consumer and commercial replacement market share gains.
  • Original equipment unit volume decreased 6%, reflecting lower industry demand, partially offset by consumer share gains in Latin America.
  • The first-quarter 2021 segment operating income was $114 million compared to breakeven in the prior year’s quarter.

The increase was driven by improvements in price/mix, the impacts of higher volume, including increased factory utilization, and the benefits of cost- saving actions, including ongoing rationalization plans.

These factors were partially offset by higher raw material costs. We estimate a severe winter storm in the U.S. negatively impacted segment operating income by approximately $17 million.

 

Categories : Tires
Tags : 2021, COVID-19, Sales and Marketing

JOBS

 
Prestige Ford
Controller
 
  VALLEYFIELD
  Full time
 
 
Honda de Boucherville
Accounting Clerk
 
  BOUCHERVILLE
  Full time
 
 
Grenier Automobile
Service Advisor
 
  TERREBONNE
  Full time
 
 
Terrebonne Mitsubishi
Delivery Coordinator
 
  TERREBONNE
  Permanent
 
 
BMW - Mini Ste-Agathe
Financial & Insurance Manager
 
  STE-AGATHE-DES-MONTS
  Full time
 

Popular Posts