The Goodyear Tire & Rubber Co. said in an investor presentation Thursday that its first-quarter earnings were "significantly impacted by weak industry volumes and inflation."

The stock market seemed encouraged, however, by the company's prediction that market conditions will improve in the second half of 2023. In the trading session following Thursday's after-market earnings announcement, Goodyear stock rose 90 cents, or 8.6%, to close at $11.43 Friday.

The Akron company said it took a net loss of $101 million for the quarter, compared to $96 million profit for the same quarter a year ago. It said its adjusted net loss was $82 million.

Net sales grew 1% compared with the first quarter of 2022.

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Goodyear cited the Russia-Ukraine war as a principal factor contributing to the weak replacement industry; the global consumer segment fell 6% and the commercial segment dropped 7% in the Americas, Europe, the Middle East and Africa.

The company also pointed to the impact of the COVID-19 pandemic and cost increases for raw materials and energy as some of the major factors affecting its performance.

The company expects "to work through continuing cost inflation and contractionary demand in many of our markets in the first half of 2023," the report said, but it is looking for conditions to improve after that.

"We are anticipating relative stability in industry demand during the third quarter and the resumption of year-over-year growth in the fourth quarter, given significant declines in the comparable period. At the same time, we should benefit from decreases in raw material costs and moderation in inflation."

Richard J. Kramer, Goodyear's chairman, chief executive officer and president, said he is proud of how the company has worked to address "unparalleled demand volatility and inflation over the last three years."

Two years after the company completed its acquisition of Cooper Tire, Goodyear has largely completed the integration, Kramer said. He added that Goodyear is energized for the celebration of its 125th anniversary.

"As I think about the path ahead, and despite the macroeconomic uncertainty that surrounds us today, I am confident in Goodyear’s future. Building on our strong history of leadership, we will continue to drive innovation in our industry and lay the foundation for the next 125 years," he said.

In a conference call with industry analysts Friday, Kramer acknowledged "we need to make sure that our operations continue to get more efficient every day" in response to recent economic tumult, but also said the company is driven to innovate to stay ahead of the competition. "I always tell my team we have to have the best products in the industry," he said.

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This article originally appeared on Akron Beacon Journal: Goodyear's first-quarter profits fall as inflation's grip tightens