Goodyear Tire & Rubber Co. posted total third quarter 2022 net income of $44 million versus net income of $132 million during the same period in 2021.
"Lower adjusted net income reflects reduced merger-adjusted segment operating income, higher interest expense and the unfavorable impact of foreign currency exchange," Goodyear officials said in an Oct. 31 letter to investors.
The company also noted that the third quarter of 2021 "reflected the early effects of increased prices but did not yet fully reflect raw material and other cost increases."
"Despite industry volume weakness, third quarter sales increased 7.6% compared to prior year, driven by strong price/mix. Revenue per tire increased 16%, excluding the impact of foreign exchange."
Goodyear's tire unit volume during the third quarter of 2022 totaled 46.7 million tires, down 3% year-over-year.
The Akron, Ohio-based company's Americas region achieved sales of $337 million during the third quarter of 2022 - a gain of 11.4% versus the same period in 2021.
And in the Americas, Goodyear's segment operating income totaled $306 million versus $259 million a year ago.
However, the Akron, Ohio-based tiremaker's overall volume in the Americas was down 1.8 million units during 3Q 2022, a 7% year-over-year decline. Replacement volume was 10.2% lower than during the same period last year. Original equipment volume increased by 14.9%.
"The decline in replacement volume - for both Goodyear and the industry - primarily reflects the rebuild of dealer inventory a year ago. In 2021, industry volume benefitted from a significant channel inventory rebuild following the pandemic as well as recovering consumer demand. This year, with overall industry product availability improving, there is less need for distributors to carry additional inventory."
