Newspaper article THE JOURNAL RECORD

Goodyear Profits Up 387% to $109.7 Million

Newspaper article THE JOURNAL RECORD

Goodyear Profits Up 387% to $109.7 Million

Article excerpt

From Staff, Wire Reports

AKRON, Ohio _ A 387 percent increase in earnings to $109.7 million, or $1.54 per share, was reported Monday for the second quarter by Goodyear Tire Rubber Co., which has a tire manufacturing plant in Lawton.

That compares with earnings of $22.5 million, or 38 cents per share, a year earlier. Sales for the quarter rose 10.7 percent to $3.1 billion from $2.8 billion.

Second quarter results included an afterx gain from restructuring of $8.3 million, or 12 cents a share. A gain of $29.6 million, or 42 cents per share, from the sale of most of the films businesses to Huntsman Holdings Corp. for $105.5 million was offset partially by two charges.

These charges were $8 million, or 11 cents a share, for the estimated cost of the planned closing of the Madisonville, Ky., specialty tire plant and $13.3 million, or 19 cents per share, from a write down of the assets of a rubber plantation in Latin America.

Through the first half of 1992, Goodyear earned $176 million, or $2.48 per share. That compares with a net loss a year ago of $67.6 million, or $1.16 per share. Sales rose 9 percent to $5.8 billion from $5.3 billion.

Sales totals for both the quarter and sixnth period broke the old records set in 1990, when second quarter sales totaled $2.9 billion and sales for the first six months were $5.6 billion.

The 1991 first six months included first quarter afterx restructuring charges of $59.7 million, or $1.02 per share, primarily from worldwide workforce reductions and the discontinuance of efforts to establish a tire factory in South Korea.

Earnings this year were boosted by sales at record levels combined with more efficient production spending, Goodyear said.

Chairman Stanley C. Gault also credited a new marketing strategy with leading to an improvement of market share in the U. …

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