Goodyear Profit Beats on Higher Sales Volume, Lower Costs

Industrials Reuters

Goodyear Tire & Rubber Co, the No.1 U.S. tire maker, reported a better-than-expected quarterly profit, helped by higher sales volume and lower raw material costs.

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Goodyear, whose brands include Goodyear, Dunlop and Fulda tires, has benefited from lower oil and rubber prices. Brent crude prices nearly halved in the fourth quarter from a year earlier, while rubber prices fell 4 percent.

The company's cost of goods sold fell 8 percent to $3.07 billion.

Tire unit volumes rose 7 percent to 42.1 million units in the quarter ended Dec. 31, partly due to the acquisition of Nippon Goodyear Ltd in Japan, Goodyear said.

The company posted a net loss of $380 million, or $1.42 per share, attributable to shareholders for the fourth quarter.

Goodyear earned $2.13 billion, or $7.68 per share, a year earlier, including a $2.2 billion tax-related benefit.

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Excluding items, the company earned 93 cents per share.

Revenue fell to $4.06 billion from $4.36 billion, hurt by a strong dollar.

Analysts on average had expected earnings of 75 cents per share on revenue of $4.01 billion, according to Thomson Reuters I/B/E/S.

Goodyear's shares were up about 1 percent at $26.50 in premarket trading on Tuesday. (Reporting by Arunima Banerjee and Shashwat Awasthi in Bengaluru; Editing by Kirti Pandey)