Goodyear swings to profit in 3rd qtr |
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Tue, 30 Oct 2007 13:55
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CLEVELAND (AP) - Goodyear Tire & Rubber Co., helped by the sale of its engineered products unit, swung to a big profit in the third quarter, even though North American tire sales were down 6 percent.Goodyear, the world's third-largest tire maker, said Tuesday that it earned $668 million, or $2.75 per share, for the quarter ended Sept. 30, compared with a loss of $48 million, or 27 cents a share, a year ago. Sales were $5.06 billion for the quarter, up from $4.9 billion in the year-ago period.On Aug. 1, Goodyear completed its sale of nearly all of its engineered products business for $1.48 billion to EPD Inc., part of Washington-based private equity firm The Carlyle Group. Goodyear said it expects to use the money to reduce debt, cover obligations for employee benefits and buyouts, and invest in its core tire businesses.Discounting the gain and one-time charges, Goodyear earned 70 cents per share.Analysts surveyed by Thomson Financial survey expected earnings of 53 cents a share for quarter.Shares in Goodyear, which is headquartered in Akron, rose 19 cents to $27.30 in premarket trading.Goodyear recorded a restructuring charge of $107 million, or 60 cents a share, in the year ago quarter that included closing a plant in Tyler, Texas.Goodyear has about 70,000 employees and makes tires and chemicals in 26 countries.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Goodyear Tire 3Q revenue rises 3%, above $5 billion 