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Goodyear Boosts Guidance, Says May Shipments Fell

Goodyear Boosts Guidance, Says May Shipments Fell

The tire company said its profits will be higher due to cost cutting and international improvements.

The tire company said its profits will be higher due to cost cutting and international improvements.

Goodyear

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upped its second-quarter earnings forecast on stronger international operations and cost cutting measures.

The tire and rubber company said it now expects to earn between 10 cents and 15 cents a share, up from 5 cents a share in the year ago quarter and ahead of the company's previous guidance of 5 cents to 10 cents a share. Wall Street had been expecting 8 cents, according to analysts polled by Thomson Financial/First Call.

Goodyear said in a press release that the higher net income projection was due to "ongoing cost-reduction initiatives and improved results from international operations."

The company also said that its North American consumer replacement tire shipments in May fell 4% from last year while European replacement shipments fell 6%, and tire shipments overall were down and below industry shipment levels for the month. Goodyear added that volumes are still not back to last year's levels, "resulting in a less-favorable brand and product mix for replacement tires."

Shares of Goodyear closed at $20 before the news Tuesday.