Loading…
Wednesday, July 30, 2014
Current Weather
Loading Current Weather....
Published: Tuesday, 4/29/2014 - Updated: 3 months ago

Goodyear posts $58M 1st-qtr loss weighed down by charges related to Venezuela

ASSOCIATED PRESS
Lonn Schubert installs a Goodyear tire on a rim in South Euclid, Ohio, in February. Lonn Schubert installs a Goodyear tire on a rim in South Euclid, Ohio, in February.
ASSOCIATED PRESS Enlarge

AKRON, Ohio  — Goodyear reported a $58 million loss for the first quarter largely due to Venezuelan currency charges.

The loss was compounded by the extreme winter weather across the U.S. that hurt tire sales, the company said.

The Akron, Ohio, tire maker’s losses added up to 23 cents per share, in the three months ended March 31. It made $26 million, or 10 cents per share, in the same quarter a year ago.

After one-time charges, including $132 million in charges related to the situation in Venezuela, Goodyear earned 56 cents per share.

Its adjusted earnings still were below Wall Street estimates, and Goodyear shares fell 5 percent, to $25.94 in early trading today.

Analysts surveyed by FactSet had expected 60 cents per share for the quarter.

Revenue dropped 8 percent to $4.47 billion from $4.85 billion, just short of projections for revenue of $4.81 billion according to FactSet.

“We delivered solid performance in our developed markets, led by North America, which reported a 23 percent increase in earnings. Growth in North America and Europe offset headwinds in emerging markets where we continue to navigate foreign currency and economic challenges,” said Chairman and CEO Richard Kramer.

Revenue in North America fell 13 percent to $1.9 billion for the quarter despite a 23 percent jump in earnings, to $156 million.

The overall number of tires sold in North America edged lower to 14.6 million, from 14.8 million, because of the rough winter, the company said.

Kramer said the company remains confident in its full-year outlook despite labor and economic trouble in Venezuela.

The company expects 2 percent to 3 percent in volume growth for the year.

Shares of Goodyear Tire & Rubber Co. have been on a steady rise over the past year and hit a 52-week high of $28.48 last week amid declining raw material prices.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories







Poll