Goodyear Tire & Rubber Falls After Missing Profit Estimates: Detroit Mover
Goodyear Tire & Rubber Co. fell after reporting fourth-quarter profit that was less than analysts’ estimates as the number of tires sold declined 5 percent.
Goodyear dropped 7.6 percent to $12.91 at 10:43 a.m. New York time. The shares had fallen 1.4 percent this year before today after gaining 20 percent in 2011.
Fourth-quarter profit excluding some items was 3 cents a share, the Akron, Ohio-based company said in a statement. That trailed the 21-cent average of seven analyst estimates compiled by Bloomberg. The drop in volume of tires sold reduced revenue by $174 million, Goodyear said.
Sales rose 12 percent to $5.68 billion in the quarter as higher selling prices boosted revenue per tire 19 percent. The average of five analyst estimates was for $5.88 billion. Net income was $25 million, or 7 cents, compared with a loss of $177 million, or 73 cents a year earlier, the company said.
Tire sales this year will be about the same as in 2011, as raw material prices rise 5 percent, Goodyear said.
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