Goodyear's stock falls after adjusted profit and sales decline more than expected
Shares of Goodyear Tire & Rubber Co. fell 1.5% in premarket trade Friday, after the tire company reported fourth-quarter profit and sales that missed expectations, as tire volumes declined amid lower auto production in China and India. The company swung to net income of $110 million, or 47 cents a share, from a loss of $96 million, or 39 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share fell to 51 cents from 99 cents, missing the FactSet consensus of 60 cents. Sales fell 5% to $3.88 billion, below the FactSet consensus of $3.94 billion, as unit tire volumes declined 3% to 40.7 million. Replacement tire shipments were nearly flat, as growth in Europe was offset by weakness in Brazil and China, while original equipment unit volume dropped 10% due primarily to lower auto production in China and India. The stock has declined 7.0% over the past three months through Thursday, and has tumbled 33% over the past 12 months, while the S&P 500 has gained 4.9% over the past year. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.