Goodyear Slips To Loss On Lower Sales, Charges; Stock Down - Update

(RTTNews) - Goodyear Tire & Rubber Co (GT) said Tuesday reported a slip to loss in the first quarter, hurt mostly on lower sales across most regions as well as Venezuelan currency charges, with both earnings and revenue falling short of Wall Street estimates.

Looking ahead to fiscal 2014, Goodyear continues to expect segment operating income to grow 10 percent to 15 percent. Goodyear shares slipped 7 percent in afternoon trade on the Nasdaq.

Sales for the quarter were mainly impacted due to harsh winter weather in the U.S., that pulled down demand as well as lower sales in Latin America, the company said in a statement.

Akron, Ohio-based Goodyear posted a first-quarter net loss to shareholders of $58 million or $0.23 per share, compared with $26 million or $0.10 per share a year ago.

Results for the recent quarter included a $132 million charge related to currency losses from the Venezuelan bolivar.

Excluding items, adjusted earnings for the quarter were $156 million or $0.56 per share, compared with $118 million or $0.42 per share a year ago.

On average, eight analysts polled by Thomson Reuters estimated earnings of $0.60 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter slid 8 percent to $4.47 billion from $4.85 billion in the prior year. Five analysts had a consensus revenue estimate of $4.81 billion for the quarter.

Among regions, sales in North America slid 13 percent from last year, and Latin America declined about 18 percent. Sales in EMEA was up 4 percent, while Asia Pacific fell 13 percent.

Goodyear stock is trading at $25.25, down $1.95 or 7.18%, on a volume of 8 million shares on the Nasdaq.