Why Goodyear Tire & Rubber Is Plunging 16% Thursday
Shares of Goodyear Tire & Rubber (NASDAQ: GT), a manufacturer of rubber tires for automobiles, trucks, buses, and aircraft, among other vehicles, are down 16% after the company reported a disappointing first-quarter result.
There's no question Goodyear Tire felt the negative impact from the COVID-19 outbreak during the first quarter. Sales declined 15% to $3.1 billion, which just barely topped analysts' top-line estimates. First-quarter adjusted net loss was $0.60 per share, far worse than the prior year's adjusted net income of $0.19 per share and below analysts' estimates calling for a $0.25 per share loss. The difficult first quarter was driven by a drop in demand following stay-at-home orders and a shutdown of many manufacturing plants. Replacement tire shipments declined 16% from the prior year, while original equipment unit volume dropped 21% and tire unit volumes declined 18%. "While this unprecedented crisis continues to disrupt our business and the broader automotive industry, I am confident we will emerge from this crisis in a strong position," said Richard J. Kramer, chairman, chief executive officer, and president.
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Source Fool.com
