Goodyear 3Q Profit Surges, Shares Sink On Outlook

THOMAS J. SHEERAN

CLEVELAND (AP) — Goodyear Tire & Rubber Co.'s profit more than doubled in the third quarter, helped by cost-cutting, new products and lower raw material costs. But its shares plummeted nearly 20 percent on its forecast for an operating loss in its key North American market this quarter.

The third-quarter performance disclosed Wednesday marked a reversal by Goodyear, which had reported $554 million in losses in the first six months of the year as the recession staggered the automotive industry, a key customer.

Goodyear, the biggest U.S. tiremaker, said it expects year-over-year global industry growth in 2010 and said its new products, especially high-end tires, and cost-cutting would give it the opportunity to capitalize on the opportunity.

"The strength of our brands and steady stream of new and innovative tires such as our branded fuel-efficient tires provided marketplace momentum and led a strong third quarter performance," said Robert J. Keegan, chairman and CEO.

Darren R. Wells, executive vice president and chief financial officer, told analysts that North American operating income was $2 million in the third quarter, but would decline $75 million to $125 million from that figure in the October-December period. The region lost $19 million in the third quarter of 2008.