July 31 (Bloomberg) -- Goodyear Tire & Rubber Co., the largest U.S. tiremaker, advanced the most in more than a year after reporting a second-quarter profit that beat analysts’ estimates.
Goodyear rose 10 percent to $11.45 at the close in New York, the biggest gain since April 29, 2011. The shares have fallen 19 percent this year after advancing 20 percent in 2011.
The company posted a quarterly profit of 57 cents a share. The average estimate of eight analysts surveyed by Bloomberg was for a profit of 45 cents. The results excluded one-time items, such as costs of accelerated depreciation and debt financing fees to refinance a credit line.
Goodyear has benefited from the rebound in vehicle sales in North America, its largest market. The tiremaker’s customers include Ford Motor Co. and Chrysler Group LLC, which reorganized under a 2009 government-backed bailout and is now majority owned by Fiat SpA. Goodyear lost $668 million from 2008 through 2010, before returning to profitability last year.
“We’re feeling confident about North America’s business fundamentals and how we are positioned for whichever way the markets move in the near term,” Chief Executive Officer Richard Kramer said on a conference call.
Goodyear’s net income rose to $92 million, or 33 cents a share, compared with $47 million, or 16 cents, a year earlier, the Akron, Ohio-based company said today.
Total company sales fell 8.4 percent to $5.15 billion in the quarter. The average of four analysts’ estimates was $5.74 billion. Tires sold during the quarter slid 8.6 percent to 39.2 million from 42.9 million, according to slides prepared for a conference call.
Revenue in the North America rose 1.7 percent even as the number of tires sold declined 1.9 percent. Unit volume in the company’s Europe, Middle East and Africa region declined to 14.2 million from 17 million.
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.
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