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Goodyear 2Q on target
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July 23, 2001: 9:26 a.m. ET
Tiremaker still cutting production in response to lower global demand
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NEW YORK (CNNfn) - Goodyear Tire & Rubber Co. reported quarterly earnings Monday that met Wall Street expectations, but the company said it is cutting production in response to sluggish demand.
The world's biggest tiremaker reported second-quarter earnings of $7.8 million, or 5 cents a share, down from $77.1 million, or 49 cents a share, a year ago. Analysts polled by earnings tracker First Call expected Goodyear to earn 5 cents a share.
"The ongoing slowdown in the auto and commercial truck industries around the globe has led to a significant reduction in orders and a corresponding effort to adjust production and inventory levels in our tire, engineered products and chemicals businesses," CEO Samir G. Gibara said. "More production curtailments will be needed in the third quarter until demand improves."
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The Akron, Ohio-based company still plans to cut 7,800 jobs this year as part of an ongoing restructuring effort to respond to the sharply lower demand. About 5,800 jobs have been cut so far.
Quarterly revenue dipped to $3.58 billion from $3.61 billion a year ago, but raw material, energy and other costs sharply reduced profit.
Shares of Goodyear (GT: Research, Estimates) closed Friday up 65 cents at $31.64. 
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Goodyear
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