The Goodyear Tire & Rubber Co. reported a sharp jump in its fourth-quarter net income, thanks to a $2 billion tax credit that offset unfavourable currency conditions and weak sales in Europe, the Middle East and Africa.
Shares of Goodyear rose 3 per cent in midday trading Tuesday.
The tire company reported net income of $2.13 billion, or $7.68 per share, in the three months ending Dec. 31.
Earnings, adjusted for non-recurring gains, were 59 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 58 cents per share.
Revenue fell 9.1 per cent to $4.36 billion in the period, which missed Street forecasts. Analysts expected $4.39 billion, according to Zacks.
The company said sales were hurt by $256 million due to a stronger U.S. dollar and $181 million due to lower sales in Europe, the Middle East and Africa.
Goodyear shares rose 78 cents, or 3 per cent, to $26.69 in midday trading Tuesday. Its shares have fallen almost 7 per cent since the beginning of the year.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GT at http://www.zacks.com/ap/GT
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Keywords: Goodyear, Earnings Report, Priority Earnings
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