GT - Earnings call transcript Q1 2022 | The Goodyear Tire & Rubber Company

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Operator

Good morning. My name is Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Goodyear First Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator hand to now Director, Gadzinski, program Relations. Investor the will Christian over Senior I ahead. go Please

Christian Gadzinski

to future those could materially affect today's our future and or call Goodyear's like otherwise. SEC statement any X. by Ashley. Financial of you, for on your earnings be here Vice safe this most The forward-looking Actual that Goodyear's differ Finance supporting earnings slide Chief quarter morning. will included our performance. us And you, harbor presentation update the results release. found can and obligation Wells, on on significant draw Darren Christina Goodyear's XXXX Slide now Chairman whether from that statements The Executive today to Zamarro, our call investor.goodyear.com. Executive participants joined President, statements Officer; I'm and Thank call. a were result thank or our attention information, outlined and as new first future I . If are later forward-looking Treasurer. a release And suggested events earnings intention I available with today's company in the filings Chief everyone, The by revise in replay about call to comments remind today. be President Kramer, instructions and some this today. at Officer; presentation includes Rich website for for could issued Replay of joining earlier would disclaims our results Vice any factors could or in

U.S. turn reconciled basis to call to now the basis. call a measures non-GAAP financial appendix discussed Rich. And that, as presentation. in the the the results of The GAAP are and, some with in cases, are GAAP part non-GAAP Our on slide will presented financial I the to equivalent a over

Rich Kramer

today our amidst you everyone. our for I'm as world underscore of facing. good our the results with challenges pleased which Great. first to business be Christian, morning, the and momentum quarter, we Thank you, is cover continued the

the communities into to few wave COVID jumping globe. a and events recognize our associates around like with is take lockdowns a Before in still to latest very that the is that performance, us. are the customers, of reminder The the China moments business impacting current much I'd pandemic

At around minds with dealing are Our for legal humanitarian shared with the associates in of offered see concern we Ukraine. heartening medical time, to associates the the and others associates in to meals, attention impacted Goodyear impacts those Ukraine including world hearts services aid neighboring It's elsewhere. responding to the need. war those and the our virus have there related same and our efforts, countries and by in housing, who

spirit. the embodies thank we for our situation volatile and this all the and to the response efforts Goodyear and for associates of Our safety We hope culture everyone Goodyear affected. of their health selfless

proposition in and I'm results on very testament to with by value of strength are teams. our sales performance the a quarter. solid results. business earnings and The Moving to our our the execution our pleased

levels continues remain focused our to of new delivering the world While on experience uncertainty, strategy. we

in brand And increase inflation in-line we and delivered have we grew consumers win continue benefiting the drive remained the distribution fourth the merger predictable, market offset technology, tire to earnings been Tire Their legacy supply our have in our and share to and nearly commercial at recovery the point the inflation including with key our have revenue and that quarter, may during efforts and channels. consumer to globally call. This grew adjusted And markets, in strong right described pricing addition the our momentum place segment robust aligned of helped hasn't contributions strategies in It's the the sales while our also execute in income pandemic time, grow a of from benefit to our clear OE Similarly, a year-over-year price During mix customers of the across the in on market. Cooper market to both quarter, share from that quarter X%. growth. the continued in the factor with grew more We're the and industry teams significant chain business over global our it our ability and tire, right right per a significant at important. tireless never our we line-up thanks to X.X we the been product from replacement driving while teams. expectations otherwise was the with When actions Goodyear sales our advances quarter. to business XX% including the our results operating XX%. our

giving are enable we where and Our business. clear analytics and the capture us data our competitors, movement end of us market day-to-day relative ability ourselves picture to our in pricing maximizing market our a for for to evaluate value to

in in the leading environment. note we Americas market to covered we we As Americas that material player, a home in market, throughout inflationary other as robust. quarter and the raw navigate the year-on-year. the quarter. Americas I'll than up in U.S. discuss results this our key more inflation and cost markets Business This I our the is where segments. in unit, in over dynamic the turn in XX% revenue business remained was are the advantage competitive

reach to value an operating While now profit United And that last key above in margin expands just sale meets States. April, the pre-pandemic our the Cooper of are we take Cooper network segments. addition emerging new by compared that auto to of tires also have same only These products, our to driver, to company-owned now levels. which but market, service meet Similarly, full of portfolio not centers those to access the highlight we're replacement for EV Cooper tap that buyers, expanded in-house begun needs also we offerings economy service products throughout mid-tier with intended. Goodyear's time, a tire as began and and product our moves extensive Americas enriched trends. of for period to new and commercial the means capabilities stop offerings than commercial and our sales truck tire the This the greatly is grew in customers the year. which was early with TireHub, XX%. national our give the bringing these line-up. ones reflects national line-up available fleet Cooper, increase market product organic we advantage distributor, sustainability needs of of points a expanding This the our better existing through strength centers the same point more premium In and the proposition of our our additional At tire increase looking distribution of and

With consumer the cost in the win RSA efficient and of to We're expanded customers. U.S., the of segment fuel load and electric the Goodyear's commercial to vehicles, electric capacity the Endurance delivery positioned RSA tire is adding mile also and fleet Fuel by we've equipped in our the portfolio savings growing Goodyear goals drive Max sustainability last for ready industry tire, higher performance ultralight pre-pandemic Eagle quarter. the replacement EMEA, strengthen and first truck during BMW thanks vehicles the last of and the with the offerings. to our breaking consumer two product to to returned continued for features actions outperformed, Exhilarate, X E-Class. like In line-up success which product Series industry-leading ultra-high volumes traction enhanced our We premium Mercedes exceptional years, the the over distribution our our all-season and handling supporting

replacement This EU, to in and gain full trend impressive brands the performance translated multiple volume where a the year, gained point consumer nearly Our saw applications. XXXX. share quarter, for by driven throughout share grew we XX% we over last winter across continuing all season a summer, the

in avoid consistent disruption footprint. a in While performance to execution there's teams disruptions, now, including on by supply a of and market manufacturing and focus right this delivering combination supply a distribution leveraging reflects the chain European our rate Western our Europe lot first factors, our improvements of

list to product claiming our recently multiple credentials We also of added long awards. new

quarter, only This and exemplary FX our but Manufacturer of Tire The auto trade the and leadership, of innovation European Eagle new SUV Asymmetric commitment Goodyear not Auto product EfficientGrip German sustainability. ratings. future the influential our During Summer publication proud Year. our magazines several this very acknowledges also recognition leading and awarded excellence oriented Goodyear recognized We're product Bild to the it the named when recognition. sustainability

of performance. outstanding also EMEA commercial Our its continues trend business

nearly with of helped proactive commercial adding we're way for predictive quarter, solutions, business, contribute suite growth advanced our customers. These replacement leading XX% analytics, now continued above is full our and volume fleet levels. telematics a the in industry database solutions Our pre-pandemic solutions another value products, to along featuring

future. in Pulandian while Turning the on China Kunshan number our factories lockdowns cases experienced by Goodyear Recently, addressing in in record, to resulted building near-term Asia-Pacific. have focused legacy our addition the deals of since growth We're disruptions volume country challenges at XXXX. consumer for with in Despite of the Tire challenges, the as business. highest Cooper driven Asia-Pacific these our is COVID was a replacement and and

we distribution same the to added add we three quarter, we've points time, of initiative, discussed territories under direct-to-retail our distribution. new at previously. During new And the continue which

to the won below also XXXX a number demand a we business saw fitment remains significant many segment. nominations improvement record volume, fast the future secure business, in growing OE consumer in of Our although In industry levels. quarter, EV

do been own have Asia-Pacific, we positive to trends our to our While work volume in margin. have improve

of material supply. our costs Pacific proximity sees and impact Asia given businesses, the than faster higher inventories lower material to generally raw mature

increases to to the we're you level adjusting for Our on degree, pricing our disruptions of In meantime, products. is cost with working near-term OE in dependent profitability replacement expect, COVID-related address would in as and Asia-Pacific great the customers a China.

to of earnings addition now the believe Cooper long-term of in We Tire. stronger continue power Asia-Pacific, with the

future positions growth in portfolio OE strong Our replacement. us pull-through for and

April, to source our tomorrow, teams of business continue also develop rubber for cultivate technical program Air continued natural a The dandelion. multiyear of our continue around partnerships Defense, tire partnership work specific supported Department to BioMADE announced by a for Lab and supports the grow sustainable of a In U.S. for new type the Force We our Research to shape technology our materials. mobility. domestic and capabilities we to

our a first customers Another we're made well achieve of transit our on making example as soybean sustainability city as tire we from enables to This with goals. Goodyear where released tire oil our sustainable commercial progress common compound. comes business, sustainability fleet the

also Labs intelligent entered tires. the scaling we partnership for future beyond provides data This solution. that and a of adoption possibilities will decentralized partnership connectivity itself, the with Nova help Moving expand into tire a company unique a

demonstrating our the are organization, emergence tire leadership technical within and changes space venture Our the with Goodyear our teams evolving arm to of business and technology mobility.

at a than environment, world that across performing is and markets. not, executing In rapidly business unpredictably. changing high level more our often long-term short opportunities are amidst on together, both Taken a is that our and we

on As technology focused remain laying earnings on consumers. we consistently of the our the The service strength offerings success greater same despite time, costs. and much challenges leverage with and at in higher customers arise, to while for We compete the is stronger future. the delivering today, win result foundation and

Now Darren. with that, I'll turn the call to over

Darren Wells

Rich. Thanks,

results of reflect continue quarter performance favorable results. first XXXX building Our our trends, number on a strong to

Cooper to to Ukraine benefits The second conflict despite growth we cost disruptions in continue tire the challenging completed in the from year. Cooper continue strong And COVID. earnings see Tire and from last strong the and combination. quarter combination continued We in from revenue the growth, top-line environment, per was significant increase

hard QX results. historical volumes to compare directly are to So

business in remaining Excluding below production and is from the remains our nearly the industry levels in a an including lower recovery OEM actions Europe. operating the pandemic, quarter actions same footprint we to up opportunity distribution, is and volume with the forward. for improve over power restructurings manufacturing major being remained taken loans pre-pandemic QX that's or X% the improved and more operating legacy for Notwithstanding, earnings the than Goodyear pressure XX% income disrupted of above Cooper including Cooper, This during pre-pandemic results including addition XX% demonstrate volumes continued timeframe. rising volume income costs, driver. These taken XXXX going from X% resulted

Turning the income Slide to statement on X.

replacement about operations. including business $XXX Sales legacy First volume driven price/mix reflecting and Goodyear's improvements units Cooper Unit from currency, XX%, of by as and the foreign excluding growth legacy growth. volume totaled billion, channels as quarter multi Cooper. increased XX%, $X.X well of from million addition OE increased in sales our

First quarter totaling income from was an $XX Cooper, segment million, operating including of net merger-related million estimated $X $XXX million. costs

not in our million. million. of in and excess of ongoing what cover increased items quarter and This the inflation last higher cost back we prior to versus I'll At $XXX well effects to the last The substantial years points by these in change year. realized the XX% than Revenue manage same Slide other summarizes After income in outlook. The the quarter to enough XX detailed Revenue the and efforts merger costs, price on of as operating release, calculated million, $XX and more forward time, XX%, QX. compared last currency. impact a strong in press increases. $XXX income The business was foreign tire in higher segment adjusting growth I chart benefit year-over-year higher $X.XX. million XX also was nearly these per Excluding share the than price the reflects mix for few were legacy in moments improved most adjusted year our to calling significant was a of but per costs price/mix segment Slide excluding inflation been highest offset the material The cost volume higher operating step on production. above pressures earnings unit tire XX. combined was our effect improvement increased efficiency, Goodyear's the only when as we've of our per sales come of year. mix Americas $XXX raw totaling benefit same three quarterly benefits

strength, translation. times positive negative on a of other typically $X dollar we The we impact currency of see combination As factors. during reflects of from a earnings million saw the U.S.

year is the on on shown $XX in intangible our aviation. assets right results The QX. operating on million, merger-related over including earnings driven two for Although tire-related is to green recorded other our captures The left the the in the essentially in finally, the primarily last of with improvement the by connection related growth solid result which merger. income bar bar the business, businesses, amortization bars. And Cooper business totaled costs, related reflects Cooper the a red to impact

transaction. this our from costs. balance further holiday increased versus primarily up we the the by ago, capital increased a the and period. for as year sheet billion cash raw flow in rebuilding a quarter nearly shutdown $X.X activities as year is for and for expecting. to increase XX negative activity metrics we billion Cooper quarter Cash seasonally first ago working continued Turning The ramps consideration impacted normal following operating the XX. on debt to the compared reflecting the is used working the following material Cash year capital of This levels shows Net were cash $X.X flow our with saw trailing Slide months. it rising slide

just has XX Over flow been the $XXX over last free rebuild. reflecting a of million, use months, working this capital cash

metric this significantly it exclude of as we over during we positive. This be lot a pre-pension perspective. at cash we adjustment the near-term of used eliminate cash since timeframe this GAAP year the to cash last our the plans Given activities measure and demonstrated. every positive operating would cash wanted one discussions CapEx, XXXX. dynamic capability of If to free a this we've with get cash moment XXXX positive in less put fund out we've our regarding been period has flow flow pension a payments, made is more to contributed I XX years flow Slide flow good this flow, cash structural take measure. believe to liability. QX and had debt-like investors To call, this, we generating Backing even was restructuring from over cash a to the shows XX

coming at in substantial are downturn to the when -- see following in last working of As the CapEx XXXX generated memo with the the the years elevated following XXXX. between happening capital bottom, and rebuilding the years, that cash we flow the see line years rebuild it's tend five can again after here can at capital XXXX, memo even over occurred we're you you levels. and But of lowest. working be XXXX, the downturns the that out big This

to only benefited price/mix. sales. strong material Cooper also as of segment increased but from X.X% other units, million the Slide $XXX Turning million Price the results, starting of Americas XX.X mix income volume Cooper the the XX. addition totaled earnings Unit of not cost covered experienced our XX% to raw Americas Americas segment Tire. or on as increases by well addition in operating and quarter. driven in costs

Slide million, in of strong quarter. EMEA declined continued ROE Europe year Replacement in replacement produced consumer $X.X as our OEs East income last to as season share fewer XXX,XXX volume than European tire by was Europe, to units million. Turning XX. about vehicles a and $XX in unit XX% operating sales legacy down well increased a reflecting X%. Middle Africa's winter business. million volume XX% gains increased $XX from year's segment about or first million $XX.X ago.

earnings of run offset we're down was point EMEA rate than U.S. million replacement confident reflected non-raw income made A yet raw was saw year foreign at decline as higher which decline comments in in QX. explained that we stronger not well than was costs Top-line cost more operating Price/mix a this $XX into heading given pricing. the $XX that This ago, and by much more million, the inflation. I offset material volume, of of in growth as sales OE the rate material growth While EMEA's then. offset sustaining the year, currency dollar. the

X.X XX on results $XXX,XXX close in replacement million X and show million increase units, to an including of in Slide OE. Asia-Pacific units

X% in increased volume increase, prior our drove year. nearly Goodyear Cooper of legacy this While versus much business

grow the remains earnings growth, for groundwork expand laying continue and environment to Asia, we challenging. distribution future the in near-term While

$XX declined lack an of largely to the of appears Goodyear, in Cooper. We year it costs growth same versus $XX volume see income raw of by million in no on pricing evidence million materials operating segment and other but the higher is this particularly This be raw spite material offset quarter addition to costs, to last despite reflects a issue. unique business. industry-wide OE the Our

for from with The again, cost Turning line material offset raw increases we expect Slide we, than And half QX from our more XX. first in call. on year to costs remains with outlook our expect price/mix. QX the to these impact

in QX in to also these cost peaking energy, of $XX and higher other 'XX. and is The pay driven benefit To cost We see continued million. and business. by costs that pressures effect to transportation as of negative impact QX inflationary QX in year-on-year pressures EMEA disruptions lockdowns expect replacement in from the in volume We recovery labor expected costs. of we in began in for moderating a resulted late China QX anniversary persist,

see factories an are million than a of $XX of a quarter added year results that included and will this is predict last to that forward. quarter a full our going transaction the year it's More benefit While might related this offsetting non-recurrence results year impact ago. benefit indirect Brazil hard in year. from recur Recall ruling Cooper running, versus costs this year not partial currently tax we the QX of what of a last to Cooper

improve difficult we're be adding At including material cost reduced see the costs raw process facing. valuable. as the today's further we unchanged update. we're first material to use given functions we're half. may With in and tell drive near-term We're also material disruptions in last markets, China. address continuing cost half actions during to more reverse the increase raw potential service from to efficiency. Slide the the consistency on And and not, Whether Cooper include factory shared savings exception of we're raw our increase that half any they're focus spot continuing Goodyear to continuing trends are direction cost output. focus consolidate materials demand in or to key centers now other continued These It's rates, optimization pressures executing our to cost the the leverage integration what would of outlook, to financial on second seeing assumptions our plant increased similar program performance be, actions to raw back-office second and and on XX appear of

interest of $XX the footprint we're I and through years, million than less investments growth tire included is our modernizations remain also today's two announced the expenditure that modernize low-cost to several loan a efficiency increased examples this at planning Americas equipment rim time, conference, and $XXX locations we've slides, progress historical upgrades, expansions projects France. manufacturing deliver included the earnings and existing This capital on million factories. vehicles. the of two for plan same within investment are million. and large strengthen about We mix are focused The on consumer the Earlier grants the our economics of subsidized industry hybrid including financed over plan we similar. in to and outlook. electric in five in in plant quarter, of the those capital an projects At $XXX in scale stages government significant includes making project in significant of Amiens, about increase largely its larger a consumer about the low recent shared competitiveness but are will The which tires, appendix our plant during diameter of for our in through

planning we questions. details. additional line process, complete up share With for that, I'll our As the open we'll

Operator

[Operator we'll Bank. our first ahead. Instructions] go take Deutsche with And Emmanuel Please from Rosner question

open. is line Your

Rich Kramer

Emmanuel. morning, Good

Emmanuel Rosner

very Thank all Hi, you morning. good for the color. much

early about So these seeing just based in increases of I -- the a the maybe passed competitors have you about talk efforts clarity cost history, on curious and making seems in environment, direct some of And around comments was pricing on your you're the you're the April. side. appreciate particular? the lot the pressure it some I outlook of higher the costs, offsetting like what in recent specific Can price

on what at you Just has comment been wanted time. know strategy to the if same can Goodyear's

Darren Wells

think the that cost impact work -- And me results. other the material And only not costs America. doing I been around the but let to and a Emmanuel, near-term we're obviously, pressures the this one. -- lot front has start of for of think raw here center dialogue is So North offset delivering the on I

acknowledge material with And cost replacement in up I quarter. we inflation have So catch during most there. coming given before our I'm off, than on that price/mix first lag Americas going from price/mix and the think to there more a And material costs business, raw the raw start of covered that is the to is we obviously, OE contracts.

So a cover raw lot of to work there those materials.

to going here. that make price we've I'm think acknowledge -- And that increase on or up has X. North January bit announced got on to calendar 'XX. background have Now year Goodyear fact America three sure same to who major an I announced competitors of give XX% during increases two of a little we're the But that got set we've to

digits. Now the amounts, been couple a announcements double of of our competitors that generally but have them been have lower have been there

price in of go the And price which to have which to we unspecified to well, we in digits. of acknowledge competitors XXXX. as four our X% increases were announced if increases And generally then three amounts, announced but most three mid-single were or major that. last So up Goodyear back year, some of during

seen. So the those we've that are announcements

made announced smaller larger a this based our just guess of I appearance an announcements have on although number competitors to but by they're is that amounts. hard pricing, I the differentiate fact, -- So have there up in summed year, that and they, that in saying

of have average increased significantly more prices than believe real increases. competitors, our announced market price our the we Now irrespective major

product costs, has increased selling indicate range market the increase the our beginning our tire XX% a which over But replacement prices Goodyear So more XX% the that in price since competitive America. than of is market to XXXX, offset objective. in North the X% analytics average to our of in compared our of

mean put -- and we're terms it allowed And increases. both in on, sellout pressure competition to has to the volume of cost getting in the of look getting up sell-in at put and prices And offset market. more being expect. some out yield. might front that's has as months. -- that's that actual And in what's recent in with shown through would going we I us showed we that up what we're if we in than that us So say

been that, announcements with addressing have going Now the catching up. are we we're made, see cost recent our think on focused forward. said increases competitors continuing the feel I to But that we like having be

Our has team allowed out for the on, increases. it up of that offset got well continue to And set which increases more us see early coming. than ahead us we it cost to cost fact

Emmanuel Rosner

great So can And about your the confidence they the around recent on more actions. prices raw of half and year? nonmaterial second done material you I offset -- to able outlook based you to the That's Okay. cost your on increases How of for possibly much is would inflation? already to ability raw into the these ask largely as obviously, level I unchanged. But half. some obviously, offset be announced? back the Where do half to the now continue think one stand in you materials expect be a need first similar

Rich Kramer

on a obviously as mind it's well. our that's Emmanuel, Yeah, question

we even when that first in quarter other that was QX. time you it to offset spoke actions. results. we expressed our I the had And we cost price/mix plans as other And confidence material and then raw place see in with think in Just cost last costs the inflation and

often out sticking raws to the much look As prices out went We Darren went right are to we we do. the repeat and versus similar I'll this again, QX, there. I see price/mix And said. environment, QX. that's thing And we in think, out what early, to pretty believe we

and as cost can in -- the I ability you tell look confident plans of second some look will higher after me. to the actions ahead, taken the a a get in got we coming But as see to we're So I costs our do we But you increase. half back cold we tell bit here. certainly I to excuse of date that half, and we've that that year.

referred Darren continued to. actions positive are that to also We in market pricing that months see recent

of back OE So we contracts to bit in about the as have or fleets cover where year. material the Again, we have of before cost. know we half those do we increased we or some think particularly that a have some of coming second work with the contracts we a raw lag contractual

we some offsetting and And raw in of of going a knowing I know put the what we key address be that, a record coming it. to the materials sure I'll it's have and half I we it's QX, would able approach again, in the place to back make is say, have with And said that's QX, we're say, price/mix plans do year. in recent said to anticipating work and having to we But think other long, execute track I to similar and how with the to there, costs. it. that So

Emmanuel Rosner

Thank Understood. you.

Operator

Ryan take from we'll Brinkman with our And next question Please JPMorgan. go ahead.

open. is line Your

Ryan Brinkman

for my Great. questions. taking Thanks

announcements materials since another communicated. would required? get on million, to relative you materials, if to expect spoke? you similar the we think. of or which that. your be had be necessarily currently including that . at you And how some that thinking course, in the to on and color the of to might raw pending et I the the are And cetera. magnitude I for just based headwind in $XXX how incremental much that, were earlier pricing raw granularly mean the have starting Just the the has in materials place more to rate, with great not last stick time It the much sort know roughly outlook have how as or a headwind to to that communicated that look prices know might much but offset are incremental how half versus the in you half And one it when just then headwind But that raw about changed compare you tailwind thinking, wasn't you first compared the of represent around half back I of price/mix back year, to that prices last back magnitude? fully

Darren Wells

Yeah.

February, me it areas. our take have Ryan. this announcement in earnings been -- changes So couple of seen in early since principally let guess a that it last The we've in I order,

in generally that lower commodities. was I have because the so -- -- commodities bit we've in then. rubber is now think right it's it but -- natural oil-based The little price increased a back fact, than seen and oil-based

that was say that And chemicals, up ticked refer are we that that pigments petrochemical oils, which the generally all and space. black. So category I since as to of those were carbon have mean, the the looking to outlook I don't going we from the second the back second quantified on think spot we But based of for think looking in environment I at half, that. a February. worse couple half it's feedstocks. prices million probably at we're hundred an for I ever on

getting cost So Yeah, coming on prices we're so incurring. been commodity that increased the from back are cost we've have then. increased would from also pressure -- some our had and But transportation. it that suppliers costs

mean I million just captures additional the well really And So feedstock we're as our probably bit the all when some big view are than is it million. $XXX our including overall even is utility more factor energy the at in up everything. parts captures world which costs incurring, costs. that of $XXX feedstock as of and their a outlook it a costs, little the arriving captures transportation suppliers cost, that that

So that we'll $XXX say driving go million. has up. to that's continued what's up the all It and wrap

of of for on order us be actions quantitatively I think to required what in in stay kind would of that. top terms

in of year, to pricing order amounts pricing to I the think, the generally that that speaking, stay similar to we actions we're material we actions have would ahead costs see. take going last took raw in

we're because -- pricing offset those to costs. have last year, further that to going took additional anniversary to we there's to going actions we're go some So

Ryan Brinkman

follow on just to already some the of we Okay. It's measures. kind of check in to have had lastly lockdown forecast new following us sources these vehicle the outside. COVID easy on so sizable XQ. I that that China then impact to number is wanted from manufacturing in on data of Great. a see industry the lockdowns and aftermarket harder subscribe impact public And The far to the for a on

kind not So could of would maybe remind different. XX% your that there. imagine then less, a but also and know seeing there I'm if you a rule of of XX% is is to impact, is just just you're it'd what thumb -- be mix in think us, the sort quite is China, impact I although if replacement disparity sure. great bit And I the aftermarket OE,

be update get there. it So to an great would

Darren Wells

things impact of toward in going mean, got like going the our China market And Yeah. that of think XX-XX so on there OE what's seen the us lost a overhead in April and production the during if units for saw Pulandian near second the lost than in effectively about $XX the with on our as position that China toward I earnings we're million ultimately our of China seen the the quarter, lot the like made we hard has just XX-XX China we move in the that's OE. forward That's terms mix March to been that our you mix We that of our is less the we during at agree between a mean, of that's as upside And factory based you in the on observation I of fact, a more impact volume. unabsorbed the And opportunity business with in the factories upside our there volume in in in lost to see forward. because those more end in I been that's we replacement one as margin market of has grow two -- that did market And one shut we worth our world. then as which replacement going more of has and to of reflective on -- there. weighted about far. have reasons rest effectively And slide outlook volume is that's so we've replacement the some I work is seeing in been tires. disruption factories. China happened okay. there, XXX,XXX -- down shutdown Kunshan.

unclear any, are behind hoping don't pretty we're those that But further be if there probably a any get to summation. then might disruptions, if disruptions us. what, we a Sort think disruptions And obviously, of good where we I that's there. additional point see

Rich Kramer

Pulandian And relationship, Ryan, get constructive local opened very would And very, authorizations I in the that early with back a the add where officials to to our have coordinating people very and we Dalian work. to factory we is. particularly give our

the there think that the I running country obviously lower it the that ability to but albeit least needs have as level. -- So plant watching, those COVID lockdowns all pleased we something the am I we're at keep to, a at are

Ryan Brinkman

Very helpful. Thank you.

Operator

And we'll go next Instructions] Healy John with go [Operator Please to Northcoast Research. ahead.

open. is line Your

John Healy

it. to of a wanted different you. the to talk more increase of kind way kind maybe Thank I about to pricing at little interesting seems the kind that commodity it be of find a global kind Hi. but the costs. potential, look almost bit that of in U.S. market is covering I market

And understand happen haven't recovery story business, a you Just that year markets be of a So some is there's why with seen to part their of maybe tell same at international you find to said, if trying thinking pricing Europe markets why this in two does part the global Asia a later years and And and for you're as throughput. guys? that that future? profits here next over those for there point those potential footing? the maybe kind a wouldn't to this opportunity that of recover as pricing bigger 'XX about the

Darren Wells

Yeah.

to So John, right I I differently. think geographies the absolutely at look think, it's

I work North and, as and in done that well. market dynamics think the America America fact, the in in we've Latin

to have weighted Americas us the replacement where recover we the market, in feel better of I way, recovering. that's more the obviously sure, where market more real-time a And recapture about that we think pretty there -- for raw good opportunity and to So Europe we've do still been is lagged. early the the material of has other costs on have market that Helpful towards have we have aggregate been experiencing. because heavily We European I the that that been say OE in progress. allowed more is fact those costs a some are would more good

Europe business is put we And of our Europe number programs the much in customers. feel material a think in make now. place raw in in index about agreements us where OE do have there place right I with our we better

as pricing the the those were feeling up the good catch as I for along think and Europe we So on Americas. we not are in benefit in as costs, being I think although far in of outlook to reasonably we're able -- about

real the see why OEs -- of index remarks, yet a it's mechanisms acknowledged do is it's those don't obviously on as embedded think in increasingly that have something not we some And increasingly That's there, we Asian automatic weighted toward reliant Chinese I now. of matures, challenging raw right And with our and the market agreements toughest that China. it that's Asia, I but a, will material have yet. are macro particularly I more think which over not there in heavily market them. is -- sort elements is prepared And b, that we OE think contracts market. this is we in the have OE, that

not the changes. those environment best So negotiate to trying it's to be

business a some there's difficult is good that it I I we long more we're but keep element right cost really try to up So while feel been historically, now. of feeling environment pressure. think think to with about mean -- term, And that much we're it I

John Healy

you it Great. That's integration the would standpoint. helpful. And with and pushing sales to just very the get from forward about ahead Cooper integration. sounded a forging thoughts are some But love like guys maybe

integration there? the position you is share running of retail it's this mentioned wallet in think of growing allowing now partners, share seen broadly that for your think there. through your is of what product TireHub, the do But I field? have And kind you you at sort

Rich Kramer

zoom whole if playing I one say a is pleased very Cooper would for moment, out transaction I yes. maybe is for we're say Yeah, integration, would And Cooper the the is the the how answer with whole out us. I thing

You results. see it in QX our

of synergies the in we a pre-pandemic of and our work pretty we have. You in different certain in I with the how much in see it in see in with very on mixing certainly, really tell And where and we And started of distributing we Cooper we say, is plans line now to levels. in different that's as business We there. the their as right We be it And thoughtful roles. be points. it line the More getting And see market. much line delivery product see product market very taking where with be being out keep in different in different on we of the with that see say it through our now a we're This integration. that are to intended be. that's is roll our we're they products. line right to pretty retail plan to in sure now. a is Associates channels with and wanted TireHub serves would out continue would we need also you the Cooper products that's it I that we Their to people the done, integration. and We conscious process that performance. making in trend it integrating out and we teams And Goodyear that above the you our

I'm So a are tell very how think now, more planned it. changes way to I But our think to come as you time. we how say, exactly we is to we about product long screen over confident where

with I'm going. the very, So way very it's pleased

John Healy

hear. to Good you. Thank Great.

Operator

Goodyear Q&A And First as conclude your this today's Quarter you well session the Thank as participation. Call. will Earnings for XXXX

disconnect. now may You

The Goodyear Tire & Rubber Company (GT) 6 May 222022 Q1 Earnings call transcript