CLEVELAND (AP) — Goodyear Tire & Rubber Co. reported a profit for the first quarter on Friday as lower raw material costs helped offset the effect of a decline in global tire sales.
Its adjusted earnings beat Wall Street estimates, and its shares rose more than 2 percent in morning trading.
"Our first quarter earnings demonstrate that our strategic focus on improving productivity and selling innovative products in targeted market segments where our brands add value is working, especially in North America, where our business continues to outperform expectations," said Richard J. Kramer, chairman and CEO.
The Akron, Ohio-based tire maker said its net income was $26 million, or 10 cents per share, in the three months ended March 31. It lost $11 million, or 5 cents per share, in the same quarter a year ago.
After charges, Goodyear earned 45 cents per share. Analysts surveyed by FactSet expected 30 cents per share.
Revenue fell to $4.8 billion from $5.5 billion a year ago. Analysts expected $5.09 billion.
Sales dropped 13 percent in Goodyear's core North America market, but also saw a $163 million reduction in raw material costs. Sales dropped 17 percent in Europe, 1.5 percent in Latin America and 1.7 percent in Asia.
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