(Corrects to say profit beat estimates in first paragraph.)
Goodyear Tire & Rubber Co. (GT), the largest U.S. tiremaker, reported a second-quarter profit that beat analysts’ estimates and lowered its full-year forecast for tire sales for the second time this year.
The company’s tire sales this year will be 5 percent to 7 percent lower than in 2011, because of “continued economic challenges, particularly in Europe,” Goodyear said in a statement today. Goodyear said Feb. 14 it expected tire unit volume to be about the same as 2011 and on April 27 revised the forecast, projecting sales to fall 2 percent.
Goodyear’s net income rose to $92 million, or 33 cents a share, in the three months ended June 30, compared with $47 million, or 16 cents a year earlier, the Akron, Ohio-based company said today.
Excluding one-time items, such as costs of accelerated depreciation and debt financing fees to refinance a credit line, Goodyear had a profit of 57 cents a share. The average estimate of eight analysts surveyed by Bloomberg was for a profit of 45 cents.
Sales fell 8.4 percent to $5.15 billion in the quarter. The average of four analysts’ estimates was $5.74 billion.
Raw-material prices will be unchanged from last year, Goodyear said today. In April, the company forecast an increase of 9 percent and in February projected such prices would rise 5 percent.
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