Goodyear Tire & Rubber shares jumped 4% in pre-conference trading as the tire company reported net quarterly earnings higher than expected as revenue rose to a 10-year high and higher selling prices helped offset inflationary pressures.
Net income rose to $ 553 million, or $ 1.93 a share, from $ 63 million, or 27 cents a share, a year ago.
Excluding extraordinary items, such as the $ 379 million tax benefit, adjusted earnings per share rose 57 cents from 44 to five, compared with estimates for 32 five.
Sales rose 38.2% to $ 5.05 billion, exceeding estimates by $ 5.01 billion.
The cost of sales increased 42.1% to $ 3.97 billion, while the gross margin decreased to 21.5% from 23.6%.
“We have achieved the highest quarterly revenue in almost a decade, as demand for our products remains strong and we have been able to achieve high sales prices,” said CEO Richard Kramer.
“Looking to the future, we expect inflationary pressures to persist for the next many quarters.”
Source: Capital
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