Tags: Goodyear | Rubber | Costs | Jump | Loss

Goodyear Posts Loss as Rubber Costs Jump

Thursday, 28 Oct 2010 10:35 AM

Goodyear Tire and Rubber Co. reported a quarterly loss Thursday, under pressure from a sharp increase in raw materials costs and charges for a debt refinancing.

Goodyear, the largest U.S. tire maker, said raw materials costs rose $412 million in the quarter from a year earlier, too much to be offset by an increase in revenue from the sale of more expensive tires.

Goodyear reported a net loss of $20 million, or 8 cents per share, for the third quarter, compared with a net profit of $72 million, or 30 cents per share, a year earlier.

Excluding one-time items that included debt refinancing, Goodyear reported earnings of 13 cents per share. Analysts on average expected Goodyear to report earnings of 10 cents per share on that basis, according to Thomson Reuters I/B/E/S.

Sales rose 13 percent from a year earlier to $5 billion, the highest level for any quarter in two years. Sales rose in all major regions, Goodyear said.

Total tires sold rose 6 percent from a year earlier and revenue per tire sold rose 8 percent, Goodyear said.

In its North American Tire business, Goodyear's biggest unit, sales rose 17 percent and total tires sold rose 5 percent, reflecting an increase in sales of more expensive tires.

© 2017 Thomson/Reuters. All rights reserved.

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Goodyear Tire and Rubber Co. reported a quarterly loss Thursday, under pressure from a sharp increase in raw materials costs and charges for a debt refinancing. Goodyear, the largest U.S. tire maker, said raw materials costs rose $412 million in the quarter from a year...
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