Industry spotlight: Goodyear

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Some of the air was taken out of Goodyear Tire & Rubber on Tuesday after the company reported revenue dropped 5 percent in the third-quarter. Shares fell 6 percent to close at $20.76.

A patron covers up in the rain at a Goodyear automotive care business in Williamsville, N.Y., Tuesday, April 28, 2009. Biggest U.S. tire maker Goodyear Tire & Rubber Co. is reporting, Wednesday, a loss of $333 million in this year's first quarter, its second consecutive big quarterly loss. (AP Photo/David Duprey)  David Duprey
David Duprey
A patron covers up in the rain at a Goodyear automotive care business in Williamsville, N.Y., Tuesday, April 28, 2009. Biggest U.S. tire maker Goodyear Tire & Rubber Co. is reporting, Wednesday, a loss of $333 million in this year's first quarter, its second consecutive big quarterly loss. (AP Photo/David Duprey)

The company posted revenue of $5 billion, down from $5.26 billion a year ago. Analysts polled by FactSet expected revenue of $5.27 billion.

The total was hurt by a drop in chemical sales in North America and changes in the value of Asian currencies.

Goodyear sold more tires in North America and was aided by a shift in Latin America to higher-priced replacement
tires. Tire sales rose about 1 percent in North America; 3 percent in Europe, Middle East, and Africa; and 8 percent in Asia-Pacific.

Sales in Latin America and North America were instrumental is boosting the company’s third-quarter profit to $166 million, or 62 cents per share, for the July-September period.

THE STOCK

Goodyear (GT)

Tuesday’s close:

$20.76 ▼ 1.29, or 5.85%

52-week range $11-$23

Price-earnings ratio * 16

Total return YTD 50%

3-year ** 27%

10-year ** 12%

Market value $5.1 billion

Note: Total returns through Tuesday

* Trailing 12 months; ** Annualized

Source: FactSet, Associated Press


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