Goodyear cuts private label business, names new blimp
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Hey there, time traveller!
This article was published 21/06/2006 (7133 days ago), so information in it may no longer be current.
AKRON, Ohio (AP) – Goodyear Tire & Rubber Co.’s profit (NYSE:GT) dropped 97 per cent in the second quarter, compared with a year ago, due to charges tied to previously disclosed plant closings and higher materials costs, the tiremaker said Friday.
But its earnings excluding the charges beat Wall Street expectations and its shares rose nearly seven per cent.
The company, which also sells the Dunlop brand of tires, said net income slumped to $2 million, or one cent per share, in the three months ended June 30 from $69 million, or 34 cents per share, in the year-ago period.
The latest quarter included restructuring and depreciation charges totaling $63 million, or 36 cents per share, primarily related to plant closings. Raw material costs rose 16 per cent.
Excluding the charges, Goodyear earned 37 cents a share. That easily surpassed the consensus forecast of 18 cents a share before unusual items by analysts surveyed by Thomson Financial.
Its shares climbed 75 cents, or 6.8 per cent, to $11.82 in morning trading on the New York Stock Exchange.
Sales rose three per cent to $5.1 billion, a record for any quarter at Goodyear, from $5 billion a year ago.
Goodyear said sales growth reflects improved pricing and product mix driven by demand for the company’s branded tires in the consumer replacement markets.
Four of the company’s six businesses achieved higher segment operating income compared to the second quarter of 2005.
Robert Keegan, Goodyear chairman and chief executive officer, said the Goodyear cost-reduction goal, which was in the range of between $750 million and $1 billion by 2008, will now exceed $1 billion.
For the first six months of the year, Goodyear earned $76 million, or 40 cents a share, versus $137 million, or 69 cents a share, a year ago. Revenue rose to $10 billion from $9.8 billion a year earlier.