Tire maker Goodyear’s profit beats on N America demand

Rubber price hike rejoices cultivators; irks manufactures

July 29 (Reuters) – Goodyear Tire & Rubber Co, the largest U.S. tire maker by sales, reported a better-than-expected quarterly profit, helped by higher demand in North America and lower costs.
Goodyear said its tire shipments in North America rose 3.3 percent to 15.8 million in the second quarter ended June 30, from a year earlier. Operating earnings in the region jumped 54 percent to a record $321 million.
A rise in sales at home slightly offset the impact of a strong dollar on Goodyear’s businesses in Europe, Asia and Latin America.
The dollar rose about 9 percent in the first three months of the year against a basket of major currencies.
Although the currency took a breather in the second quarter, it is expected to rise 5 percent in the second half of the year, according to a Reuters poll of analysts.
Goodyear, which gets more than half of its revenue from outside the United States, said cost of goods sold fell 14 percent in the second quarter, while selling, general and administrative expenses declined 7 percent.
The company’s net income available to its common shareholders fell 9.9 percent to $192 million, or 70 cents per share.
Excluding items, Goodyear earned 84 cents per share, above the average analyst estimate of 75 cents.
Total revenue fell 10 percent to $4.17 billion, but beat analysts’ estimate of $4.13 billion, according to Thomson Reuters I/B/E/S.
Up to Tuesday’s close of $29.58 on the Nasdaq, Goodyear’s shares had risen 7 percent in the past 12 months. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Maju Samuel)

No Result