(AOF) – In the second quarter of 2022, the tire manufacturer Goodyear published a net profit of 166 million dollars, against 67 million dollars a year earlier. Excluding one-time items, adjusted earnings per share of 46 cents beat the FactSet consensus of 36 cents. Its sales rose 31% to $5.21 billion, from $3.97 billion in the second quarter of 2021 and above the FactSet consensus of $5.04 billion for the period under review.
Its sales rose 31% to $5.21 billion, from $3.97 billion in the second quarter of 2021 and above the FactSet consensus of $5.04 billion for the period under review. Tire sales volumes reached 45.6 million units, up 21% from the prior year period.
“Our sales in the second quarter of 2022 – as well as in the first half – were the highest for ten years, which reflects the integration of Cooper Tire within our group, the favorable impact of the decisions taken in pricing terms in many of our key markets and the growth of our sales volumes. Thanks to the increase in our turnover, we have continued to grow our profits despite high inflation and the disruptions linked to the Covid-19 pandemic in China,” commented Group Chairman and CEO Richard Kramer.
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Negotiations with builders
On average, equipment manufacturers represent between 60 and 85% of the manufacturing cost of a vehicle. According to the Federation of Vehicle Equipment Industries (Fiev), negotiations are very tense with manufacturers regarding the passing on of increased costs. The price increases concern both electronic components, raw materials, such as steel, nickel, lithium or palladium, energy and transport. Equipment manufacturers mainly negotiate with Stellantis and Renault to set up indices to pass on increases. They are also betting on innovation, differentiation, upgrading and internationalization.