(Adds shares, details from conference call)
April 28 Goodyear Tire & Rubber Co
reported quarterly profit that beat estimates, as the company
sold tires at higher prices while keeping a lid on its costs.
The company's shares rose as much as 3.6 percent to $36.74
The No.1 US tire maker also reaffirmed its outlook for
segment operating income of $2 billion in 2017 and $3 billion by
The Akron, Ohio-based company has hiked tire prices twice
this year, helping it partly offset higher raw material costs in
the first quarter.
Raw material costs, that have risen, are expected to be "a
significant year-over-year headwind in 2017," Chief Executive
Richard Kramer said in a statement.
Pick-up in orders for heavy-duty trucks, whose production
had fallen in the United States due to a supply glut, is likely
to help the tire maker's sales in 2017.
"We feel very good about the performance of commercial truck
during the quarter and its potential in the second half of the
year," Chief Financial Officer Laura Thompson said on the
Preliminary U.S. heavy-duty truck orders rose 41 percent
last month, boosted by truck firms' return to buying as they see
freight volumes rising after a tough environment in 2016,
according to industry forecaster FTR.
Global demand for truck and so-called specialty tires - for
mining and agriculture - will pick up in 2017, according to
However, Goodyear cut its forecast for full-year tire unit
sales to "about flat" from 1 percent increase compared with
The company, which also makes tires for aircraft and NASCAR
racing cars, said its tire volumes fell 4 percent in the first
quarter ended March 31.
Goodyear's shipments in the Americas region, its biggest
market, declined 4.4 percent due to lower U.S. auto production
during the quarter ended March 31.
Net income fell to $166 million, or 65 cents per share, in
the quarter, from $184 million, or 68 cents per share, a year
On an adjusted basis, the company earned 74 cents per share,
beating estimates of 63 cents, according to Thomson Reuters
Goodyear's selling, administrative and general expense fell
5.9 percent to $579 million.
Revenue rose marginally to $3.70 billion.
Analysts had expected revenue of $3.78 billion, according to
Thomson Reuters I/B/E/S.
Up to Thursday's close, shares of the company had risen 14.8
percent this year.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Arun