Bloomberg News

Goodyear Falls After Missing Profit Estimates: Detroit Mover

February 15, 2012

Feb. 14 (Bloomberg) -- Goodyear Tire & Rubber Co. fell the most in a month after reporting fourth-quarter profit that was less than analysts’ estimates as the number of tires sold declined 5 percent.

Goodyear dropped 5.2 percent to $13.25 at the close in New York. The shares improved from an intraday slide of 9.4 percent. Goodyear has declined 6.5 percent this year 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.

--Editors: Bill Koenig, John Lear

To contact the reporter on this story: Mark Clothier in Southfield, Michigan at mclothier@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net


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