Goodyear Tire & Rubber Co. (GT), the largest U.S. tiremaker, fell the most in more than 14 months after reporting a third-quarter profit that was below analysts’ estimates, hurt by lower sales in Europe.
Goodyear dropped 10 percent to $11.02 at the close in New York, the biggest drop since Aug. 18, 2011. The shares have slid 22 percent this year after advancing 20 percent in 2011.
The company posted a quarterly adjusted profit of 53 cents a share. The average estimate of eight analysts surveyed by Bloomberg was for a profit of 59 cents. The results excluded one-time items, such as accelerated depreciation and pension settlements in the U.K.
Sales fell 13 percent to $5.26 billion in the quarter. The average of four analysts’ estimates was $5.87 billion. Tires sold during the quarter slid 12 percent to 41.8 million, Goodyear said. Tires sold in Goodyear’s Europe, Middle East and Africa unit decreased 21 percent to 16.3 million and the unit’s operating margin narrowed to 6 percent of sales from 11.7 percent.
Goodyear’s net income fell to $117 million compared with $168 million, the Akron, Ohio-based company said today.
The company’s tire sales this quarter will be 3 percent to 5 percent lower than in 2011, Goodyear said in the statement. For the year, Goodyear said consumer replacement-tire sales will fall 2 percent to 3 percent in North America, where tires for new cars and light trucks will rise 8 percent to 10 percent.
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