BUSINESS

Goodyear's 3Q profit falls 3 per cent, but earnings beat expectations; shares rise

10/29/2014 08:54 EDT | Updated 12/29/2014 05:59 EST
AKRON, Ohio - Goodyear Tire's third-quarter net income fell 3 per cent as tire sales fell around the world, but its adjusted earnings easily beat Wall Street expectations.

Shares of the tire maker rose more than 5 per cent Wednesday afternoon.

Goodyear reported net income of $161 million, or 58 cents per share, in the quarter ending Sept. 30, compared with $166 million, or 62 cents per share, in the same quarter a year ago.

Adjusted to remove certain one-time items, the company earned 87 cents per share. Analysts expected 70 cents, according to FactSet.

Revenue fell 6.9 per cent to $4.7 billion from $5 billion, and missed Wall Street forecasts. Analysts expected revenue of $4.9 billion.

The company said sales were hurt by unfavourable foreign currency exchanges.

Sales in North America fell 6 per cent to $2.06 billion. They fell 8 per cent to $1.62 billion from $ 1.75 billion in Europe, Middle East and Africa and fell 14 per cent to $451 million in Latin America.

Shares of The Goodyear Tire & Rubber Co., based in Akron, Ohio, rose $1.14 to $22.99 in afternoon trading. They had been as high as $24.01 earlier in the day.