Goodyear 3Q out of air
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September 29, 1998: 9:52 a.m. ET
Tire maker says emerging markets, GM strikes to take chunk out of earnings
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NEW YORK (CNNfn) - Goodyear Tire & Rubber Co. said Tuesday its third-quarter earnings will fall short of Wall Street expectations.
The Akron, Ohio-based tire maker said adverse economic conditions in Asia and Latin America and a strong dollar will take a chunk out of its third-quarter profits.
Goodyear said those factors, as well as one-time costs related to the continued effect of two strikes at General Motors Corp., and costs to convert certain North American plants to seven-day operations and to address Year 2000 compliance issues, will lower third-quarter earnings by approximately 35 cents a share.
The company said it expects to report third-quarter diluted earnings in the $1.15- to $1.20-a-share range, off First Call estimates of $1.22 a share for the quarter. Goodyear added its third-quarter results include a 20-cents-a-share gain from property sales.
Goodyear also said the adverse conditions will result in the elimination of 800 jobs, which the company had previously announced. Those cuts represent almost 1 percent of Goodyear's 95,000 employees worldwide.
A Goodyear spokeswoman said the company won't provide details about the costs and job cuts until it reports third-quarter results Oct. 14.
Goodyear (GT) shares were off 1-3/8 at 54-3/8 in early trading.
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Goodyear
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