Goodyear Sees Return to Profit
Goodyear Tire & Rubber
(GT) - Get Goodyear Tire & Rubber Company Report
continues on the road to recovery.
The company Friday said it expected to post a profit in the third quarter, thanks to improved pricing and product mix and higher unit volume, reversing a year-ago loss.
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The company preannounced earnings of 19 cents to 21 cents a share, vs. a loss of 68 cents a year ago. Third-quarter sales are expected to hit a record $4.7 billion, up from $3.9 billion in the third quarter of 2003, driven by improved segment operating income in all seven of the company's businesses.
Analysts expect the company to earn 19 cents a share on revenue of $4.55 billion.
The 2004 quarter will include "previously announced rationalization charges, mostly related to cost-reduction activities in the company's non-tire businesses," Goodyear said.
The Akron, Ohio-based tiremaker said it is "on the right track to continue our turnaround." Goodyear said it would report results by its Nov. 9 deadline.
Shares rose 20 cents, or 2%, to $10.43 in premarket trading.
