AKRON, Ohio (
Goodyear Tire & Rubber
posted a surprise profit but said it will shutter a 1,900-worker Tennessee plant.
Goodyear said early Thursday it booked net losses of $177 million, or 73 cents per share, compared with a year-earlier profit of $107 million, or 44 cents per share.
Adjusted profit was 7 cents per share when excluding one-time charges of $213 million related to asset write-offs, accelerated depreciation, changes in the goods exchange rate in Venezuela and a claim regarding the use of value-added tax credits.
The adjusted earnings figure topped analysts' consensus call for a loss of 7 cents per share. Analysts typically exclude such extraordinary items when forecasting estimates.
Goodyear's total revenue grew 14% to $5.1 billion as tire unit volumes rose 4% to 45 million. The top-line figure benefited from record price and mix improvements, which helped drive revenue per tire.
Investors bid Goodyear shares 3.1% higher in premarket trading after the stock closed down 3.3% at $12.51 on Wednesday, despite word the tire manufacturer plans to shut one of its plants.
Goodyear will close its 1,900-worker plant in Union City in northwest Tennessee.
"While we are committed to manufacturing in North America, all of our plants must be cost competitive," said CEO Richard Kramer. "This is not the case with this plant, and as a result, the market has moved beyond what the factory is able to build."
Goodyear expects to save around $80 million annually by closing the facility.
-- Written by Miriam Marcus Reimer in New York.
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