Goodyear Tire & Rubber
reported higher quarterly earnings, boosted by strength of its overseas businesses.
The Akron, Ohio-based company said third-quarter net income more than tripled to $33.7 million, or 20 cents a share, up from $9.3 million, or 6 cents a share, a year earlier. Revenue for the quarter slipped to $3.5 billion from $3.7 billion.
The numbers included an after-tax gain of $8.2 million, or 4 cents a share, as a result of selling a portion of its land in Mexico. Additionally, the company took a $43 million charge related to the repatriation of international earnings. Other items were after-tax rationalization charges totaling $8.9 million, or 5 cents a share, due to the consolidation of one of its European facilities and the closing of a manufacturing plant in the U.S., and a $20.3 million tax benefit.
In its Eastern Europe, Africa and Middle East tire businesses, operating income rose to $30.3 million from $6.2 million last year, due to improved factory utilization, higher replacement-market volume, cost-reduction programs and price increases. "Our international business units demonstrate that our initiatives to achieve top-line growth and substantial earnings improvement are delivering results," the company said in a press release.
Conversely, North American profit fell to $10.1 million from $87.9 million. Elsewhere, Latin American profit rose 26%, and Asia's operating income more than doubled.
"While economic conditions in our key markets and rising raw material costs are a concern, we remain committed to generating significant cash flow through continued concentration on working capital reduction in the fourth quarter," the company said.