By RTT News,
July 30, 2014, 12:19:00 PM EDT
(RTTNews.com) - Goodyear Tire & Rubber Co. ( GT ) Wednesday said its second-quarter profit increased from a year ago, despite a decline in revenues, with the tire maker reporting strong earnings at its North America and EMEA businesses while curbing costs.
Earnings for the quarter trumped Wall Street estimates by a penny, but revenues fell short of expectations on lower sales from North America and Latin America.
Akron, Ohio-based Goodyear's second-quarter profit improved to $213 million or $0.76 per share from $181 million or $0.67 per share a year earlier.
Excluding one-time charges and gains, earnings rose to $225 million or $0.80 per share from $209 million or $0.76 per share a year ago. On average, nine analysts polled by Thomson-Reuters expected earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude one-time items.
Goodyear said its second quarter sales declined to $4.65 billion from $4.89 billion last year. Sales also missed analysts consensus estimate of $4.75 billion for the quarter.
Tire unit volumes increase 3 percent to 40.6 million from a year ago, with replacement tire shipments up 6 percent with growth in all four regions. However, original equipment unit volume was down 4 percent, primarily in Latin America.
Cost of goods sold declined to $3.53 billion from $3.85 billion last year.
North America sales decreased 7 percent to $2.04 billion, however, the unit's operating profit climbed 2 percent driven by higher replacement tire volumes. Tire units sold in the North America improved to 15.3 million units from 14.8 million units a year ago.
Europe, Middle East and Africa's operating profit more than doubled to $117 million from $51 million last year. Sales increased $3 million to $1.58 billion from last year.
Latin America operating income plunged to $59 million from $82 million due to continuing economic challenges, while Asia segment operating profit dropped to $76 million from $91 million last year, due to weak demand for OTR tires.
Moving ahead, the company continues to see a 2 to 3 percent rise in unit volumes for the full-year 2014.
GT is currently trading at $25.72, down $1.93 or 6.98%, on the Nasdaq.
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