By Anastasia Tomazhenkova: The third largest tire company in the world Goodyear Tire & Rubber Co. announced its fourth-quarter profit rose to 52 million dollars, boosted by strong U.S. and international premium tire sales.
Goodyear, the largest U.S. tire maker, reported net profit of 52 million dollars, or 23 cents a share, compared with a net loss of 358 million dollars, or 2.02 dollars a share, a year earlier, when it faced a three-month strike in the United States.
Fourth quarter 2007 income from continuing operations was 61 million dollars or 27 cents a share, compared to a loss of 310 million dollars or 1.74 dollar a share in the fourth quarter of 2006.
Goodyear's fourth quarter 2007 sales were 5.2 billion dollars, an 11% increase over the 2006 quarter, offsetting lower volumes with higher prices and a richer product mix. Three Wall Street analysts' consensus revenue estimate came in at 4.76 billion dollars.
The company estimates that a 12-week strike at its North American facilities in 2006 reduced fourth quarter 2006 sales by 318 million dollars.
Improved pricing and product mix drove revenue per tire up 10% over the 2006 quarter.
Lower volumes reflect weak winter tire sale demand in Europe and the company's exit from certain segments of the private label tire business in North America along with weak conditions in several key markets.