|Goodyear posts profit for quarter |
|Posted: Tuesday, February 14, 2012 10:00 pm |
|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. |
It was this past year that Goodyear shut down its Union City tire plant, which employed nearly 1,900 workers. The local tire plant was this region’s largest employer.
Goodyear’s results fell short of Wall Street expectations, and its shares fell almost 2 percent in trading ahead of the market opening.
The biggest U.S. tire maker also cautioned Tues-day 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.
Goodyear said that revenue per tire rose 19 percent, taking out the effects of foreign currency translation.
Its shares fell 27 cents, or 1.9 percent, to $13.70 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.
Published in The Messenger 2.14.12