AKRON, Ohio (AP) — Goodyear Tire said Tuesday that its second-quarter net income more than doubled, as lower costs more than offset a drop in tire sales.
The company's adjusted profit beat Wall Street expectations, but it warned that it expects economic woes, particularly in Europe, to result in full-year sales volumes below 2011 levels.
The Akron, Ohio-based company reported net income of $85 million, or 33 cents per share, for the three months ended June 30. That's up from $40 million, or 16 cents per share, a year ago.
Excluding one-time items, Goodyear earned 57 cents per share. Analysts expected 45 cents per share.
Its revenue fell 8.4 percent to $5.15 billion from $5.6 billion a year ago as tough economic conditions in Europe reduced demand. Analysts expected $5.74 billion.
North American sales rose 1.7 percent to $2.45 billion, while sales in Europe, the Middle East and Africa fell a combined 18 percent to $1.6 billion.
Goodyear Tire & Rubber Co. says it now expects its full-year tire sales volumes to be down about 5 percent to 7 percent from 2011 levels.
While demand from North American automakers is expected to rise from 2011 levels, demand from both consumers and automakers in Europe, the Middle East and Africa is expected to fall.
Overall raw material costs are expected to rise about 7 percent for the year, Goodyear said.
Its shares rose 20 cents, or 1.9 percent, to $10.57 in premarket trading.