Shares of Goodyear Tire & Rubber Co. plunged 9.3% in premarket trade Friday, after the tire maker slashed its 2017 profit outlook. Net profit for the quarter to June 30 fell to $147 million, or 58 cents a share, from $202 million, or 75 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 70 cents, matching the FactSet consensus. Revenue slipped to $3.69 billion from $3.88 billion, just shy of the FactSet consensus of $3.73 billion. The company cut its 2017 guidance for segment operating income to a range of $1.60 billion to $1.65 billion from "approximately" $2.0 billion. "In addition to higher raw material costs, we have seen a weakening in OE and consumer replacement demand across many of our key markets during the first half, despite strong underlying industry fundamentals," said Chief Executive Richard Kramer. "The combination of these factors has led to a highly unusual first half environment, particularly given the favorable trends in miles driven, gasoline prices and unemployment that are generally supportive of our industry." The stock has rallied 14.9% year to date through Thursday, while the S&P 500 has gained 10.6%.
Copyright © 2017 MarketWatch, Inc.