Goodyear Tire posts robust 3Q results

10/27/05 - newratings.com

NEW YORK, October 27 (newratings.com) – Goodyear Tire & Rubber Co (GT) Thursday reported an over threefold increase in its third quarter earnings, driven by price hikes and increased sales of expensive tires. For the fourth quarter, Goodyear Tire & Rubber said that it expects continued year-over-year gains in operating results, although the gains would be smaller than those in the third quarter.

The company’s third quarter net profits rose to $142 million, or $0.70 per share, from $38 million, or $0.20 per share, in the year-ago period. Goodyear Tire & Rubber’s latest quarter results include after-tax charges of $0.0 5 per share due to temporary supply disruptions during hurricanes Katrina and Rita and $0.0 4 per share for restructuring. The results also include gains totaling $0.19 per share for the sale of the resins business and an insurance settlement.

Goodyear Tire & Rubber’s quarterly sales climbed 7% to $5.03 billion. Sales at the company’s tire unit increased 1.8% to 58.4 million units during the three-month period. Although the unit sales volume at the company’s North American tire business remained flat during the three-month period, revenues were up 5% to $2.37 billion. Unit volumes at the company’s European tire unit were up 2.5% at 16.2 million units, while revenues were up 4.2% at $1.13 billion.

The company continues to implement its restructuring programme aimed at cutting costs.