(Adds shares, details)
Feb 8 Goodyear Tire & Rubber Co reported
lower-than-expected quarterly sales on Wednesday, as it shipped
fewer tires in the Americas, and the company lowered its 2017
forecast for segment operating income.
The No. 1 U.S. tire maker's shares were down 3.4 percent at
$31.15 in premarket trading.
The company forecast its 2017 segment operating income to be
flat compared with 2016, partly as raw material costs continue
to rise. Earlier in January, Goodyear had forecast 2017 segment
operating income growth in the mid-single digit range.
Goodyear said it expects 2017 tire unit sales to rise about
The company said shipments in the Americas, its biggest
market, fell 4.6 percent, hurt by a continued decline in U.S.
heavy-duty truck production.
Heavy-duty truck production has fallen in the United States
as a result of over supply in the market.
Goodyear reported net income of $561 million, or $2.14 per
share, in the fourth quarter ended Dec. 31, compared with a loss
of $380 million, or $1.42 per share, a year earlier.
On an adjusted basis, Goodyear earned 95 cents per share.
Last year's loss included items related to the
deconsolidation of Goodyear's Venezuelan unit.
Net sales fell to $3.74 billion from $4.06 billion.
Analysts on average had expected earnings of 87 cents per
share and revenue of $3.88 billion, according to Thomson Reuters
(Reporting by Arunima Banerjee and Ankit Ajmera in Bengaluru;
Editing by Martina D'Couto)