Goodyear Posts 4Q Profit, But Misses Street View


Salon Staff
February 14, 2012 6:00PM (UTC)

AKRON, Ohio (AP) — Goodyear Tire & Rubber Co. returned to profitability in its fourth quarter partly due to higher tire prices after reporting a loss a year ago that included hefty costs tied to a plant closing.

But its results fell short of Wall Street expectations, and its shares fell more than 3 percent in morning trading.

Advertisement:

The biggest U.S. tire maker also cautioned Tuesday that long-term global tire industry growth will be at a slower pace near term than previously predicted due to ongoing economic difficulties in several markets.

For the period ended Dec. 31, Goodyear reported net income of $18 million, or 7 cents per share. That compares with a net loss of $177 million, or 73 cents per share, a year ago.

Excluding one-time items in the latest period, Goodyear said that its earnings were 3 cents per share. Analysts expected earnings of 20 cents per share, according to a FactSet survey.

The prior-year period included a $160 million charge tied to its plans to close a plant in Union City, Tenn.

Quarterly revenue increased 12 percent to $5.68 billion from $5.07 billion partly on higher tire prices, but tire unit volumes dropped 5 percent on difficulties in Latin America, flooding in Thailand and declining replacement industry volumes in mature markets.

The revenue performance missed Wall Street's estimate of $5.86 billion.

Advertisement:

Goodyear said that revenue per tire rose 19 percent, taking out the effects of foreign currency translation.

Its shares fell 47 cents, or 3.4 percent, to $13.50 in premarket trading.

For the year, Goodyear reported net income of $321 million, or $1.26 per share. In the previous year it lost $216 million, or 89 cents per share.

The Akron, Ohio company's annual revenue rose 21 percent to $22.77 billion from $18.83 billion.


Salon Staff

MORE FROM Salon Staff

BROWSE SALON.COM
COMPLETELY AD FREE,
FOR THE NEXT HOUR

Read Now, Pay Later - no upfront
registration for 1-Hour Access

Click Here
7-Day Access and Monthly
Subscriptions also available
No tracking or personal data collection
beyond name and email address

•••


Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •