NEW YORK (AP) — The Goodyear Tire & Rubber Co. on Wednesday reported a drop in first quarter profit as lower tire sales and currency swings dragged down revenue.
The tire maker’s shares dropped almost 9 percent in midday trading.
Goodyear said its profit fell 17.8 percent to $184 million, or 68 cents per share. Its earnings adjusted for non-recurring costs came to 72 cents per share, topping Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 70 cents per share.
The Akron, Ohio-based company’s revenue fell 8.3 percent to $3.69 billion in the period. The company said a stronger U.S. dollar and the deconsolidation of its unit in Venezuela were key factors in the revenue drop. Weak sales in Brazil also helped sink revenue.
Still, tire unit volumes rose 2 percent to 41.5 million, driven by growth in Japan and China. Replacement tire shipments rose 2 percent.
Goodyear shares fell $2.91, or 8.9 percent, to $29.87 in midday trading. The stock has risen 8 percent in the last 12 months.
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
Keywords: Goodyear, Earnings Report, Priority Earnings