Goodyear Reports Losses
Goodyear Tire and Rubber Co., has released its delayed first quarter results, reporting record sales figures but a loss of nearly $77 million US.
However the losses were more favourable than previous results, where Goodyear saw a loss of $196.5 million in 2003. The $76.9 million loss, fell somewhere between Goodyear’s predictions of $75 million and $85 million. The loss equates to 44 cents per share, compared with the previous year’s share price of $1.12.
The company said that earnings were helped by higher prices, cost cutting and strong volume.
First quarter sales were $4.3 billion, an all time sales record for the tyre company. Sales have risen by 21 per cent compared with last year’s sales of $3.5 billion.
Goodyear postponed the release of its results saying it needed more time to complete financial statements.
The results included charges of $51.1 million, or 29 cents per share, and a gain of $4 million, or 2 cents per share, from the sale of assets. And the tyre unit volume was up 55.7 million units from 52.6 million units a year ago.
Goodyear Tire and Rubber Company, has surprised the financial community by delaying the release of its first quarter results. The results were due for release on 16 June but, along with the planned investor conference, they have been rescheduled. The company is confident that it will release its financial details well before the 30 June deadline required by its creditors. In light of last year’s late release, Goodyear will also want to avoid any speculation about the reason for the delay.
In a results preview, the company said it expects to report first quarter sales close to $4.5 million, an $800,000 increase. Segment operating results are also expected to improve significantly in six of the company’s businesses, including North American Tire. The figures for quarterly net losses are expected to total approximately $80 million, which compares favourably with the $196.5 million losses reported this time last year.