Shares of Goodyear Tire & Rubber (GT) jumped Friday on record sales, led by stronger tire unit volumes across all its geographical markets.
The Akron, Ohio-based tire maker posted net income of $103 million, or 42 cents a share, compared with a loss of $47 million, or 19 cents a share, in the same quarter last year, widely trumping the Street’s view of 12 cents.
Revenue for the three-month period was $5.4 billion, up 28% from $4.27 billion a year ago, way ahead of average analyst estimates polled by Thomson Reuters of $4.77 billion.
Leading the gains were global tire unit volumes, which climbed 7% year-over-year to 46.8 million, driven by a 30% improvement in North America to $2.3 billion. Tire sales in Europe, Middle East and Africa climbed 28% to $2 billion.
Goodyear said it expects the global tire industry will continue growing through 2011. The company increased its forecast for most major segments in North America and Europe, now expecting unit volumes to increase at the higher end of the previously announced range of 3% to 5%.