Goodyear posts stronger-than-expected results, but cuts outlook

Tue Feb 12, 2013 7:41am EST

Feb 12 (Reuters) - Goodyear Tire & Rubber Co, the top U.S. tire maker, on Tuesday posted a stronger-than-expected quarterly profit, but cut its 2013 forecast due to weakness in the European automotive market.

"As a result of our view of continued weakness in the European economy and its effects on the auto and tire industries, we are reducing our 2013 segment operating income expectation and are taking actions to ensure long-term competitiveness in the region," Chief Executive Richard Kramer said in a statement.

The company broke even on fourth-quarter results available to common shareholders, compared with a profit of $18 million, or 7 cents a share, in the year earlier period.

Excluding one-time items, Goodyear earned 39 cents a share, almost double the 20 cents analysts polled by Thomson Reuters I/B/E/S had expected.

Sales in the quarter fell 11 percent to $5.05 billion.

Goodyear said it now expects 2013 segment operating income of $1.4 billion to $1.5 billion, below the $1.6 billion it had previously forecast. It blamed the weakness in Europe for the reduced outlook.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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