AKRON, Ohio -- Goodyear Tire & Rubber Co., dealing with a 4-week-old strike, on Thursday reported a loss of $48 million in the third quarter due to restructuring charges and higher raw material costs, even though sales set a company record. Its shares rose more than 4 percent in premarket trading. þþThe loss for the world's third largest tiremaker amounted to 27 cents per share for the July-September period, including $126 million, or 71 cents per share, in after-tax restructuring charges. Of those charges, $107 million, or 60 cents per share, are tied to Goodyear's planned closing of its tire plant in Tyler, Texas. þþ year ago, Akron-based Goodyear earned $142 million, or 70 cents per share, in the third quarter. Those earnings included items that in total boosted earnings by 10 cents per share. þþAnalysts surveyed for Thomson Financial expected earnings of 24 cents a share for the latest quarter. þþGoodyear sales rose to $5.28 billion, a record for any Goodyear quarter and a 6 percent increase from $5.03 billion in the year-ago period. Improved sales were driven by higher pricing and a better product mix, particularly in its North American Tire unit, the company said. þþIts shares rose 68 cents, or 4.5 percent, to $15.85 in premarket trading. þþGoodyear has been dealing with a strike involving more than 12,000 members of the United Steelworkers union who walked off jobs in the United States and Canada on Oct. 5. þþTire volume was 55.8 million units in the quarter, compared to 58.4 million units in the 2005 period. The 4 percent decrease was in part a result of the company's exit from certain segments of the private label tire business in North America. Revenue per tire increased 8 percent compared to the third quarter of 2005. þþDuring the period, the company also had an after-tax gain of $10 million, 6 cents per share, from a supplier settlement, and after-tax expenses of $7 million, 4 cents per share, tied to a previously announced plant closure in New Zealand. þþGoodyear last week announced the closing of its Texas plant in Tyler, eliminating 1,100 jobs. That plant makes wholesale private label tires, and its fate had been a key issue in negotiations that have been stalled since the strike which includes a plant in Sun Prairie, Wis., began. þþGoodyear said the plant is being closed because it is in an unprofitable segment of the business. þþÿAlthough we are in the midst of a strike by the United Steelworkers in North America, we continue to work hard for a contract that is fair to all stakeholders and puts Goodyear on a level playing field with our competitors,ÿ Chairman and Chief Executive Robert J. Keegan said as part of the company's earnings release. þþThe Steelworkers have said Goodyear's final contract offer included pay and benefit cuts for current employees and retirees and the possibility of plant closings in Tyler and Gadsden, Ala. The company has said its latest proposal would not cut wages and involves closing only the Texas plant. þþThroughout the strike, Goodyear executives have said they want the union to help the company be competitive in a global economy. The union maintains it already accepted pay cuts, job losses and other concessions in 2003 to help get the company back on track financially. þþGoodyear has about 80,000 employees and makes tires, engineered rubber products and chemicals in 29 countries. þþþ
Source: Chicago Tribune
