Goodyear Tire & Rubber Co (NASDAQ:GT) reported fourth-quarter FY21 sales growth of 38% year-on-year, to $5.05 billion, beating the analyst consensus of $4.96 billion.
- Cooper Tire merger, improvements in price/mix, increased sales from other tire-related businesses, and higher volume drove the growth.
- Sales in the Americas rose 58% Y/Y, Europe, Middle East & Africa increased 16%, and the Asia Pacific grew 17%.
- Original equipment unit volume decreased 1%, reflecting lower vehicle production, which continued to be affected by shortages of components and materials.
- Adjusted EPS of $0.57 beat the analyst consensus of $0.32.
- Selling, general and administrative expenses increased 23.9%. The segment operating margin was 7.7%, and segment operating income for the quarter rose 29.5% to $391 million.
- The company held $1.1 billion in cash and equivalents as of December 31, 2021.
- "Looking ahead, we expect inflationary pressures to persist over the next several quarters," said Richard Kramer, chairman, CEO, and president.
- Price Action: GT shares are trading lower by 23.3% at $16.67 on the last check Friday.
