* Second-quarter revenue down 5 pct
* Tires sold to vehicle makers in North America down 4 pct
* Total Latam revenue down 8 pct
* Shares fall as much as 8.8 pct
(Adds comments from conference call, updates share price)
By Mridhula Raghavan
July 30 Goodyear Tire & Rubber Co, the
biggest U.S. tire maker, reported lower-than-expected quarterly
revenue as it sold fewer tires to vehicle makers in North
America and Latin America.
Goodyear shares fell as much as 8.8 percent $25.22, their
biggest intraday percentage decline in nearly two years.
The company, which competes with Japan's Bridgestone Corp
and France's Michelin, said tires sold to
vehicle makers in North America, its biggest market, fell 4
percent the quarter. Revenue in the region fell 7 percent to
However, total replacement tire sales, which are sold
through dealers to customers and account for about 70 percent of
total tire sales, rose 6 percent.
"We sold significantly more consumer tires and less
commercial tires in the quarter giving us a less rich mix than
expected," Chief Financial Officer Laura Thompson said on the
call. "The raw material cost benefit was less than we forecast."
In Latin America, where sales to vehicle manufacturers fell
33 percent, Goodyear said it was hurt by lower vehicle
production in Brazil and economic turmoil in Venezuela.
Total sales in the region fell 8 percent to $489 million.
Akron, Ohio-based Goodyear said overall tire volumes rose 3
percent in the quarter.
But revenue declined 5 percent to $4.66 billion, falling
short of the average analyst estimate of $4.75 billion.
Net income available to the company's shareholders increased
about 18 percent to $213 million, or 76 cents per share, in the
second quarter ended June 30.
Excluding items, Goodyear earned 80 cents per share, 1 cent
above the average analyst estimate, according to Thomson Reuters
Goodyear's shares had risen 16 percent since the beginning
of the year to Tuesday's close.
(Reporting by Mridhula Raghavan in Bangalore; Editing by
Joyjeet Das and Saumyadeb Chakrabarty)