Goodyear posts profit of $28 million
Posted: Thursday, July 29, 2010 9:02 pm
Associated Press Writer
CLEVELAND (AP) — Goodyear Tire & Rubber Co. reported a $28 million second-quarter profit today in contrast to a loss a year ago as demand for its tires increased worldwide, especially in the key U.S. market.
The biggest U.S. tire company and third largest globally said it sold more higher-end and Goodyear-branded tires and that more than offset higher materials costs.
Its shares rose 50 cents, or 4.1 percent, to $12.45 in morning trading.
Goodyear, based in Akron, reported net income of 11 cents per share for the April-June quarter, in contrast to a net loss of $221 million, or 92 cents per share, a year ago.
Excluding charges, the company would have earned 12 cents a share, beating the Wall Street forecast of 5 cents.
Revenue rose 15 percent to $4.5 billion from $3.9 billion a year ago, led by a 21 percent gain in the core North American market.
The number of tires sold increased 10 percent in the quarter. The revenue jump was helped by a better mix of high-end tires and Goodyear branded-tires over lower-priced private label tires it produces.
Elsewhere, sales were up 21 percent in Latin America, 16 percent in Asia-Pacific and 5 percent in Europe-Middle East-Africa.
“Our businesses continue to perform better than a year ago as they capture the benefits of recovering industry demand, strong new product performance and solid productivity improvements,” said Richard J. Kramer, president and CEO.
“We are clearly on the right path as our strategies position us to grow profitably as markets continue to improve.”
For the first six months of the year, Goodyear reported a narrower loss of $19 million, or 8 cents per share, versus a loss of $554 million, or $2.30 per share, a year earlier.
Revenue rose to $8.8 billion from $7.5 billion a year ago as the recession hurt global markets.
Goodyear Union City employs aboout 2,000 associates.
Published in The Messenger 7.29.10