Goodyear Stock Plummets following CFO’s Operating Income Q4 Prediction
Shares in Goodyear Tire & Rubber Co experienced the sharpest fall in New York trading for 22 years following chief financial officer Darren Wells’ prediction that income in North America will decline between $75 million and $125 million compared to third quarter results in the period October-December 2009. The company therefore forecasts an operating loss in North America during the fourth quarter. Wells made the statement during a conference call with analysts today discussing the results of 2009’s third quarter.
Bloomberg reports that the company’s shares fell as much as 28 per cent. The news organisation’s report cites 10.54 am in New York, when stock had fallen $4.45, or 27 per cent, reaching $12.29. The company suggested that income in other territories would remain flat during the rest of the year. This fall suggests that many Wall Street traders were caught off-guard with this announcement, a conclusion backed up by CEO Robert J Keegan’s upbeat message in the company’s third quarter report.