Goodyear expects breakeven at best for third quarter

AKRON (Sept. 21)—Goodyear revised downward its earnings prediction for the third quarter, and now expects breakeven at best and possibly a net loss. The company blamed the poor results on rising raw material and energy costs, weak pricing, lower-than-expected tire demand in North America and Europe and the continued deterioration of the euro vs. the U.S. dollar. Last year Goodyear posted $109.1 million in net income for the quarter. Goodyear reported it is making gains in North America from the Bridgestone/Firestone Inc. recall, as customers select Goodyear tires as replacements, but global conditions declined beyond the firm´s expectations. Auto and truck makers have cut back on production, forcing the tire maker to reduce its output. The Engineered Products business also has taken a hit, with weaker sales, especially in conveyor belting and the hose and power transmission product aftermarket. Goodyear has taken steps to respond to the problems, said Chairman Samir Gibara, and the company "is continuing its efforts to redeploy selected assets."