Now let’s shift gears, and look at one of the US markets’ more recognizable names. In fact, you may be using some of their products right now. Goodyear is one of the world’s top four automotive tire manufacturers, and the largest in the US. The company’s most recent expansionary move was its acquisition, completed last year, of the Cooper Tire & Rubber Company. The buyout cost Goodyear $2.5 billion.

The acquisition was worth it for Goodyear, however, as the tire giant reported solid numbers in its 4Q21 and full year results. Q4 revenue came in at $5.05 billion, the highest in more than two years and up 38% year-over-year, while EPS, at 57 cents per share, handily beat the 33-cent forecast. For the full year, total revenues were $17.5 billion, a sum that just edged over the expected $17.3 billion. Annual EPS was reported at $2.09, beating the $1.82 forecast.

Despite these solid results, Goodyear shares fell sharply after the report, and the stock is down 33% from the peak in reached in January of this year. The fall in stock price has been attributed to management’s concession that inflationary and economic pressures are rising against the company, and will likely worsen in the course of 2022. Goodyear faces rising costs across its supply, manufacturing, and distribution chains, on everything from labor to raw materials to shipping. The company estimates that raw materials alone will increase in cost by $700 million to $800 million in the first half of 2022 compared to 1H21.