Goodyear sees itself in prime position to capitalize on Trump auto tariffs: ‘We have a lot of opportunity in front of us’

• The largest US manufacturer of tires for car companies And the consumer replacement market believes that the heavy North American traces make it perfectly placed to outcompete its foreign peers like Michelin, Bridgestone and Continental. “Exposure to Goodyear tariffs equals nearly a -average for the industry,” its financial leader told investors.

Goodyear Tire and Rubber, the largest tire supplier in the United States, believes that the strong trace of North American production will help exceed it with three major competitors.

The company benefits from a wide portfolio of tires, including those for expensive cars, electrical vehicles, and light trucks provided to carmakers, as well as a growing exposure to the consumer market for replacement tires in the more profitable 18-inches and larger segments.

Finally, the company realized the $ 200 million in spying, the most of any reporting period since it started Most well by the money manager's activist Elliott investment.

“Looking forward, we will almost definitely continue to see some volatility in our US trade policy markets,” chief executive Mark Stewart told investors during the first quarter income call.

“For Goodyear, as the largest US manufacturer that delivers on a twist through a major change program, it is also clear that we have many opportunities in front of us.”

Stewart's tire manufacturer competes with Michelin of France, Bridgestone and Continental of Germany Japan. The smaller rivals include Pirelli, Yokohama, Nokian and Sumitomo.

The total US passenger car tire market – including both volumes sold to Carmakers and the consumer replacement market – costs 300 million tires, of which only more than half are estimated from countries outside North America.

By comparison, Goodyear provides nearly 60 million tires annually -to the US market, with only 12% of the exposed to the new section 232 tariffs of the Trump sector. Management argues that its factories in Canada and Mexico are fully compliant with the USMCA trading area.

“In its efficacy means that the Goodyear tariff exposure is equivalent to almost a -quite average for the industry. This is undoubtedly a significant advantage for our US business forward,” Christina Zamarro, head of finance during the call.

Two of three asset sales that -Finalize with only synthetic rubber ops left

Despite the denial of income and operating profit, Q1 has sank from a loss to a $ 115 million net income.

This includes a $ 260 million Windfall revenue from sale of its business that provides off-the-road (OTR) tires for construction, mining and other heavy vehicles.

More one-off obtained can potentially lift results in the current second quarter and beyond.

This week, GoodyearThe divestment endedof its Dunlop brand at Sumitomo Rubber on Wednesday for a $ 526 million purchase price as well as further compensation to cover different costs.

Throughout the same transactions, Goodyear collected cash proceeds of $ 1.6 billion.

Finally, Zamarro said the Goodyear's Chemical Business, which made up nearly $ 1 billion in the annual income from the sale of synthesized rubber, remains under strategic analysis.

“We are engaged with many interested parties in this potential transaction,” he said, re -proved that he expects at least another $ 360 million in gross to proceed minimum for chemicals.

This story was originally featured on Fortune.com