Goodyear Results ‘Deflate’ Analysts

Goodyear may have been in profit for the second quarter and may have posted record sales but not everyone is impressed. Deutsche Bank analysts have pointed out a number of flaws in the company’s optimism.

Although second quarter earnings of $0.23 are impressive, and $0.10 ahead of the banks estimate, the analysts point out that $0.09 was due to a lower than expected tax rate.

Goodyear’s $248 million EBIT may also be decidedly less exciting than the company would have us believe. Considering the fact that tyre volumes and pricing were stronger than expected and that pension and raw material costs were substantially lower, this figure could have been higher. As a result the analysts are saying that Goodyear is “significantly under performing.”