At Goodyear, a drop in raw-material prices boosts quarterly results

Shares of Goodyear Tire & Rubber Co. (GT) edged higher in the extended session Monday after the tire maker posted mixed third-quarter results but said raw-materials costs fell, helping its bottom line. Goodyear lost $89 million, or 31 cents a share, in the quarter, contrasting with earnings of $44 million, or 16 cents a share, in the year-ago period. Adjusted for one-time items, Goodyear earned 36 cents a share. Sales fell to $5.14 billion, from $5.31 billin a year ago. Analysts polled by FactSet expected adjusted earnings of 19 cents a share on sales of $5.3 billion. "This was the first quarter in two years where the benefits of price/mix vs. raw materials exceeded inflation," Goodyear executives said in a letter to shareholders. There were also "signs of improving volume" in several markets, including the U.S., indicating an end to the destocking that began in late 2022, and "strong" demand for travel in the U.S., with vehicle miles traveled more than 2% above last year, the company said. In a separate press release, the tire maker said it will update Wall Street on the status of its reorganization plan next Wednesday, Nov. 15. Goodyear announced the plan in September.

-Claudia Assis

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11-06-23 1712ET

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