Goodyear Revenue Rises about 27%
Goodyear Tire & Rubber Company . Swung to a Q1 profit on a 27% rise in revenue, as demand improved and price raises helped offset rising raw-material ...
Goodyear Tire & Rubber Company . Swung to a Q1 profit on a 27% rise in revenue, as demand improved and price raises helped offset rising raw-material costs. The firm’s call to grow sales of higher-end tires also continues to repay. Goodyear’s volume grew 7% from a year ago to 46.8 million tires, with revenue per tire jumping 15%, excluding the impact of foreign currencies. Assured about the growing tire industry, Goodyear tires raised its volume expansion outlook for the year to the higher end of its formerly declared between 3 p.c. and five pc range. The company could sell as much as 190 million tires this year. But Goodyear warned speculators about rising rubber and other material costs.
The company stated that it is expecting to repeat its first quarter performance and offset lots of rising raw material costs in Q2. For the quarter, Goodyear revenue was $103 million, or 42 cents a share, compared with a loss a year before of $47 million, or nineteen cents a share. Including some items, the company earned 51 cents a share, exceeding the twelve cents a share guess of researchers surveyed by Thomson Reuters. The company’s revenue rose 27% to a record $5.4 bln, the highest quarter in Goodyear’s history. Shares jumped 13%, or $2.05, to $18.25 per piece in late morning trading. The Northern America unit, the guts of Goodyear’s operations, reported a $40 million operating profit, compared to a loss of $14 million in the year-earlier quarter. Sales increased thirty percent to $2.3 bill as tire cargos to stores jumped 15%. Automobile and wagon makers increased their purchases by 8%. “Improvements in northern US Tire is a vital part to achieving our targets,” declared Goodyear CEO Richard Kramer. “North America Tire’s Q1 performance bolsters my confidence in our future.” The Western european division also delivered more profitability, creating an operating profit of $153 million, up from $109 million a year ago. Part of Goodyear’s quarterly success was its capability to counter rising commodity costs with several price raises and by replacing some materials for others.
The company asserted it offset about $361 million of its $385 million rise in raw-material costs. The company didn’t offer a total figure.
Goodyear tires declared raw-material costs for the rest of the year will increase between twenty five percent and 30 percent compared to 2010.
