(Reuters) -Goodyear Tire & Rubber Co posted quarterly profit and revenue that beat Wall Street estimates on Friday, as sales of its tires rose due to a rebound in auto demand.
The global tire industry was hit hard in 2020 as the coronavirus health crisis led to a sharp decline in demand for replacement tires and original equipment.
U.S. auto demand, however, has risen since then, as consumers focus on personal safety and opt for private vehicles during the COVID-19 pandemic. Low interest rates and stimulus checks are also aiding the rebound.
“We achieved these results despite the impact of a severe winter storm in the U.S. and industry supply chain challenges,” said Goodyear Chief Executive Officer Richard Kramer.
The company, whose brands include Kelly and Dunlop, said tire volumes rose 12% to 35 million units in the quarter, while replacement tire volumes jumped 14%.
Americas – Goodyear’s biggest market – benefited from strength in the U.S. consumer and commercial replacement market.
Excluding items, the company earned 43 cents per share, beating estimates of 9 cents, according to Refinitiv data.
The company reported a net income of $12 million, or 5 cents per share, in the quarter ended March 31, compared with a net loss of $619 million, or $2.65 per share, a year earlier.
Net sales rose 14.9% to $3.51 billion, beating estimates of $3.40 billion.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)
