The Goodyear Tire & Rubber Company ( GT Quick Quote GT - Free Report) reported third-quarter 2020 adjusted earnings per share of 10 cents against the Zacks Consensus Estimate of a loss of 8 cents. Higher-than-expected net sales of tires from the Europe, Middle East and Africa unit led to the outperformance. Precisely, net sales from the said segment were $1,156 million, surpassing the consensus mark of $1,039 million.
Nonetheless, the bottom line deteriorated from earnings per share of 45 cents recorded in the prior-year quarter due to lower revenues across all segments. Lower industry volume and reduced sales amid the coronavirus pandemic weighed on the firm’s results.
It delivered net revenues of $3,465 million, lower than $3,802 million reported in the year-ago quarter due to reduced volumes and unfavorable currency translations. However, revenues surpassed the Zacks Consensus Estimate of $3,450 million.
For the reported quarter, tire volume was 36.6 million units, down 9% from the year-ago period. Both original equipment unit volume and replacement tire shipments declined 9% from the year-ago quarter owing to lower consumer demand and reduced vehicle production.
The Americas segment generated revenues of $1,823 million, which compared unfavorably with $2,049 million in the prior-year period. The segment incurred an operating income of $106 million, lower than $175 million in third-quarter 2019. The year-over-year decline was due to reduced volume and weak factory utilization.
Revenues in the Europe, Middle East and Africa segment were $1,156 million, down from $1,205 million a year ago. The segment’s operating profit declined to $22 million for the quarter under review from $66 million in the prior quarter.
Revenues in the Asia Pacific segment fell 11.3% year over year to $486 million. The segment’s operating profit came in at $34 million for the quarter under review, lower than $53 million in the corresponding period of 2019.
Goodyear — whose peers include
Cooper Tire & Rubber Company ( CTB Quick Quote CTB - Free Report) , Bridgestone Corp. ( BRDCY Quick Quote BRDCY - Free Report) and Michelin ( MGDDY Quick Quote MGDDY - Free Report) — had cash and cash equivalents of $1,057 million as of Sep 30, 2020, up from $908 million on Dec 31, 2019. As of Sep 30, 2020, long-term debt and finance leases amounted to $5,708 million, up from $4,753 million on Dec 31, 2019. Cash flow from operating activities summed $581 million. Currently, Goodyear carries a Zacks Rank #3 (Hold). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Legal Marijuana: An Investor’s Dream
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