DETROIT--Goodyear Tire & Rubber Co. reported a larger
fourth-quarter profit as its North America and Europe performance
offset weakness in its Latin America market. The company also said
it spent $1.15 billion in cash to fully fund its pensions which
should boost free cash flow in the future.
The results, coupled with its third straight year of
profitability and the pension payment, mark an end to years of
restructuring and costs that once plagued the Akron, Ohio
industrial icon. The company must now work on expanding its
presence while keeping a steady beat of new products that has
helped win more customers, especially in the U.S.
Net income, before dividends, was $235 million compared with $7
million. Excluding one-time items, the company earned 74 cents,
exceeding the analyst estimates of 62 cents. Profit after dividends
was $228 million or 84 cents.
North America's operating profit jumped 72% to $199 million from
$116 million for quarter compared with the same time period in 2012
as the company sold 16.3 million tires, a 3% increase while
benefiting from lower raw material costs.
Europe's operating profit also increased to $101 million from
$38 million for the same time period a year earlier as an effort to
cut manufacturing costs paid off. Asia's operating profit rose to
$67 million. Currency fluctuations, meanwhile, eroded earnings in
Latin America where the company's operating profit fell to $52
million.
Write to Jeff Bennett at Jeff.Bennett@wsj.com
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