NEW YORK (CNNfn) - Goodyear Tire & Rubber Co. didn't live up to its name, although it reported a smaller-than-expected drop in fourth-quarter earnings Wednesday.|
"While our 1999 financial results were disappointing, Goodyear has laid the groundwork for significant improvement in 2000 and into the future," said Samir G. Gibara, chairman, chief executive officer and president.
The results were hurt by product shortages in North America, problems due to exchange rates and weak economic conditions in many emerging markets -- especially those in Latin America. Still, Gibara said the company is comfortable with 2000 estimates in the range of $3.00 a share.
The company had fourth-quarter earnings excluding special items of $47.6 million, or 30 cents a diluted share. Analysts surveyed by earnings tracker First Call were looking for 28 cents a share in the period. The company had earnings excluding items of $115 million, or 74 cents a share, in the year-earlier quarter.
Goodyear (GT: Research, Estimates) reported net income, including special items, of $40.8 million, or 26 cents a share, in the quarter. That's compared with $121.5 million, or 78 cents a share, a year earlier. Revenue in the quarter rose to $3.6 billion from $3.2 billion a year earlier.
For the year net income was $241.1 million, or $1.52 a share, down from $682.3 million, or $4.31 a share in 1998. Revenue for the year rose to $12.9 billion from $12.6 billion.
Shares of Goodyear fell 15/16 to 22-1/16 in trading Tuesday.