Goodyear Loses $74 Million in 2nd Quarter

Goodyear Loses $74 Million in Second Quarter, Compared to $29 Million in Earnings a Year Ago

AKRON, Ohio July 30,(AP) -- Goodyear Tire & Rubber Co. on Wednesday reported a $73.6 million loss in the second quarter because of high raw material expenses and the costs of layoffs.

The loss of 42 cents a share for the April-June period compares to earnings of $28.9 million, or 18 cents per share, in the same quarter a year ago.

Sales in rose 8 percent to $3.8 billion from $3.5 billion a year ago.

The latest results included an after-tax charge of $13.4 million for layoffs and consolidation of manufacturing facilities in North America, Europe, Latin America and Asia.

Goodyear also had an after-tax loss of $7 million in the quarter because of asset sales.

Those items contributed 12 cents a share to the reported loss. Without them, Goodyear would have lost 30 cents a share.

The consensus estimate of analysts surveyed by Thomson First Call was for a loss of 25 cents.

The company said the bulk of its loss for the quarter can be blamed on a $124 million increase in raw material costs.

Goodyear reported the number of tires sold was down by 500,000 in the quarter at 52.8 million, compared to 53.3 million in the year-ago period.

For the first half of the year, Goodyear lost $236.9 million, or $1.35 a share, versus a loss of $34.3 million, or 21 cents a share, a year ago. Revenue rose to $7.3 billion from $6.79 billion a year ago.

Meanwhile, the United Steelworkers of America, which represents 19,000 Goodyear workers, said contract negotiations with the company are scheduled to resume in Cincinnati next week.

The talks would be the first negotiations since June 27, when the union said the rubber company's health care and retirement offers were unacceptable.