Goodyear Sees Q3 Profits Fall

Goodyear has released its Q3 financial report, showing a drop in quarterly profit. News sources suggest that weak demand in both OE and replacement markets are responsible. However shares are up 14 per cent following the net income announcement, because the quarterly profit of $31 million ($0.13 per share) beat very low expectations. Last year, the company’s net profit for Q3 was at $668 million ($2.75 per share), boosted by the sale of its engineered products division.

The company reports a $19 million operating loss in the North American market, way down from last year’s profit of $66 million. “The tyre industry is facing challenging business conditions as the global financial crisis and slowing economic conditions are impacting consumer demand,” stated Goodyear CEO Robert Keegan. However, there was better news in Latin America and Asia-Pacific regions, where the company’s profits grew.