AKRON, Ohio (AP) — The Goodyear Tire & Rubber Co. reported a sharp jump in its fourth-quarter net income, thanks to a $2 billion tax credit that offset unfavorable currency conditions and weak sales in Europe, the Middle East and Africa.
Shares of Goodyear rose 3 percent in midday trading Tuesday.
The tire company reported net income of $2.13 billion, or $7.68 per share, in the three months ending Dec. 31.
Earnings, adjusted for non-recurring gains, were 59 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 58 cents per share.
Revenue fell 9.1 percent to $4.36 billion in the period, which missed Street forecasts. Analysts expected $4.39 billion, according to Zacks.
The company said sales were hurt by $256 million due to a stronger U.S. dollar and $181 million due to lower sales in Europe, the Middle East and Africa.
Goodyear shares rose 78 cents, or 3 percent, to $26.69 in midday trading Tuesday. Its shares have fallen almost 7 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GT at http://www.zacks.com/ap/GT
Keywords: Goodyear, Earnings Report, Priority Earnings