CLEVELAND - Goodyear Tire & Rubber Co. sold more than tires at higher prices to the first quarter, helping to set a company record sales for the quarter and reversing a loss from the first quarter of 2010.
Goodyear shares have increased by more than 10% to $17.87 after the opening bell, a new record for 52 weeks. In the morning, increase of 12 per cent of Goodyear has been the best of any company in the Standard & Poor 500 index.
Goodyear said Friday that it earned $ 103 million, or 42 cents per share, on revenue of $ 5.4 billion. Excluding the charges, Goodyear earned 51 cents, easily beating Wall Street for 12 cents and 4,89 billion estimates.
In the first quarter of 2010, based in Akron Goodyear lost $ 47 million, or 19 cents per share, on revenue of $ 4.3 billion.
Goodyear has sold nearly 7 percent more tires in the period January-March in the first quarter of 2010 and its revenues by the tire has been up to 15%, reflecting a goal of developing high performance products.
Income in the first quarter was assisted by chemical sales in North America and the effects of the weakness of the dollar, which translates to more money in the translation of overseas sales.
President and CEO Richard j. Kramer said of improving performance in North America could help the company achieve its goals of 2013.
Sales in its revenues of unit rose 30 percent in the same period in 2010 to $ 2.3 billion, reflecting more sold 13 percent tire and 12 per cent more North American Tire by Canadian tire.
Goodyear has also benefited from the cost of pension in North America.
Sales increased 28% in the unit of the Europe-Middle East-Africa of Goodyear in the first quarter of 2010, 22 per cent in Latin America and 14% in the Asia-Pacific region.
"All our businesses made great strides by offsetting higher raw materials in the conduct of the sales of innovative products and better prices-mix", said Kramer.
Kramer, said in a call with analysts that gasoline higher prices - which can cause less replacement tires more slow and driving – can cut the two ways of Goodyear.
"Historically, as gasoline prices have spiked at the level $4, there is a decrease in fuel consumption," he said.
"And, while the increase in fuel prices enhance the value of our fuel-efficient tires, fuel, the future impact on the behaviour of long-term use is uncertain." We see any impact at this time. ?
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