(Boursier.com) — Goodyear Tire & Rubber turned sharply lower on Friday on Wall Street and now collapses 23% to $16.8, while the American tire manufacturer has just published quarterly accounts that are well above forecasts. For its fourth fiscal quarter, the group posted adjusted earnings per share of 57 cents, compared to a level of 44 cents a year earlier and a consensus of 32 cents. Revenues soared to $5.05 billion (+38%), compared to $3.66 billion in the corresponding period last year. Revenue consensus was 4.96 billion.
Unit volumes of tires increased by 29% year-on-year. Replacement tire shipments soared 39%. Quarterly revenue growth excluding the Cooper Tire transaction remains solid at 12%. Quarterly net profit was $553 million and adjusted profit was $162 million.
“We achieved our highest fourth quarter revenue in nearly 10 years as demand for our products remained strong and we achieved higher selling prices,” said Richard J. Kramer, CEO of the group. “With the addition of Cooper Tire, our merger-adjusted segment operating income was significantly higher than last year and more than 60% higher than the fourth quarter of 2019. Looking ahead, we are expect inflationary pressures to persist over the coming quarters. We remain focused on executing strategies to capture market value and manage our costs,” Kramer continued.
“We are pleased with the pace of our integration of Cooper Tire and continue to make solid progress towards the increased synergy goals we shared in November,” Kramer said. “I am confident that we have positioned our business to deliver strong long-term sales and earnings growth.”
Nevertheless, the group’s financial director indicated that the free cash flow would come out “tight” in 2022 with the high costs of materials, which is creating a little wave of panic today!
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