The Goodyear Tire & Rubber Company (NYSE:GT), the biggest U.S tire manufacturing company today stated that its profit for the 3rd quarter went up by 22% as its plans of promoting its high-end tires paid off even though its sales remain unchanged.
The company’s shares went up by $1.07, or 7.5%, to $15.22 in morning trading. The shares are up 78% from their 52-week low of $8.53 early this month. They peaked May 10 at a high for the past year of $18.83.
The company’s net income for the quarter ending on 30th Sept. amounted to $161 million or 60 cents per share, in comparison to a loss of $20 million, or 8 cents a share, in the same quarter during the previous year.
The company after deducting the one-time items, earned 72 cents per share beating analyst average estimates of 23 cents per share.
Goodyear took a charge of 13 cents per share related to the shutdown earlier this year of its Union City, Tenn., plant, which employed about 1,800.
Revenue went up to $6.1 billion from $5 billion earned in the prior period which the analysts predicted at $6.26 billion.
Revenue in North American increased by 18%, in Europe-Middle East-Africa region by 3%, in Latin America 14% and in Asia-Pacific by 21 %.
The company net income till September end amounted to $303 million, or $1.19 per share, on sales of $17.1 billion in comparison to a loss of $39 million, or 16 cents per share, on sales of $13.8 billion during the previous year.
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