Shares of Goodyear Tire & Rubber Co. leaped as much as 12 percent Friday after the company said its third-quarter results will show "record" revenue, reflecting a better mix of products and sales growth across all seven of its units.http://cbs.marketwatch.com/news/story.asp?guid=%7BFD068AED%2DB69F%2D4083%2DAF19%2D1EC795AF9A41%7D&siteid=mktw&dist=The Akron, Ohio-based tire maker also said it would refile its annual report for 2003 and restate earnings for the first two quarters of 2004 to reflect an additional $4.6 million in non-tire business expenses.The company said it "misclassified" about $360 million in each assets and liabilities and would correct this in the amended filings. The change doesn't affect income, cash flows or any covenants.Merrill Lynch analyst John Casesa offered an upbeat take on the overall announcement to clients although he said restatements such as these are troubling."It is unnerving to see Goodyear restate its financials again, especially after all the energy and expense the company had already put into rebuilding its financials earlier in the year," he noted.Goodyear said it expects to post third-quarter sales of about $4.7 billion, up from $3.9 billion a year ago. Earnings were pegged between 19 cents and 21 cents a share, reversing a loss of 68 cents a share a year earlier.Analysts polled by Thomson First Call had forecast a profit of 19 cents a share on revenue of $4.55 billion."Preliminary results suggest that turnaround is on track," Casesa said. "Cost reduction efforts and improved pricing and mix are moving the company in the right direction, despite the more difficult tire industry environment."Goodyear said it would report the quarterly results by a Nov. 9 deadline.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar