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Goodyear Swings to a Loss, Cuts Outlook
Goodyear Tire & Rubber Co. posted an $11 million net loss in the first three months of this year compared with a $103 million profit in the same period of 2011.
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Goodyear Tire & Rubber Co. posted an $11 million net loss in the first three months of this year compared with a $103 million profit in the same period of 2011.
The cost of refinancing debt took a toll on net earnings, the company says. Operating income fell 8% to $292 million. Goodyear cites lower volume overseas, high raw materials costs, inefficiency at its factories in France and the cost of closing a North American plant.
Revenue rose 2% year over year to a first-quarter record $5.5 billion despite an 8% drop in sales to 43 million tires. Revenue per tire jumped 16% because of improvements in mix and pricing, according to the company.
Goodyear lowered its full-year outlook for its sales from flat to a 2% decline in volume because of slower growth in the global tire industry.
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