UPDATE: Goodyear Shares Jump On Upbeat Q3 Earnings
Shares of Goodyear Tire & Rubber Company (NYSE: GT) jumped 10% in pre-market trading after the company reported upbeat third-quarter earnings.
The Akron, Ohio-based company posted quarterly net earnings of $161 million, or $0.58 per share, compared to $166 million, or $0.62 per share, in the year-ago quarter. Excluding non-recurring items, Goodyear Tire's adjusted earnings came in at $0.87 per share.
Its net sales dropped to $4.66 billion from $5 billion. However, analysts were expecting earnings of $0.70 per share on revenue of $4.93 billion.
Sales in its Latin American unit declined 14% to $451 million from $527 million, while North America's sales slipped 6% to $2.1 billion. Europe, Middle East and Africa's sales dropped 8% to $1.6 billion, while Asia Pacific's sales declined 1% to $531 million.
Tire unit volume fell 2% to 41.9 million in the quarter. Original equipment unit volume slipped 3% in the quarter.
During the third quarter, Goodyear Tire repurchased 1,200,000 shares of its common stock at an average price of $24.75 per share.
"We delivered outstanding earnings growth in the quarter and achieved a segment operating income margin of more than 11 percent, the highest in more than a decade, despite an increasingly challenged global economy," said Richard J. Kramer, chairman and chief executive officer.
Goodyear Tire affirmed its 2014-2016 financial targets.
Goodyear Tire shares surged 10% to $24.10 in pre-market trading.
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