NEW YORK, N.Y. – The Goodyear Tire & Rubber Co. on Thursday reported a boost in third-quarter profit on lower costs, but revenue slumped on lower sales of tires and a stronger U.S. dollar.
The tire maker reported a 68 per cent boost in profit to $271 million, or 99 cents, per share. The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 98 cents per share.
The profit boost came mainly from lower costs of raw materials and cost reductions.
Revenue fell 10.2 per cent to $4.18 billion in the period, which fell short of Street forecasts. Four analysts surveyed by Zacks expected $4.2 billion.
The Akron, Ohio-based company cited a stronger U.S. dollar as a key factor to the decline in revenue. Also, tire sales in every region fell.
Goodyear shares fell 52 cents, or 1.6 per cent, to $32.88 in premarket trading shortly before the market open.
Goodyear shares have climbed 17 per cent since the beginning of the year, while the Standard & Poor’s 500 index has risen 1.5 per cent. The stock has risen 52 per cent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GT at http://www.zacks.com/ap/GT
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