Goodyear Tire’s third-quarter net income fell 3 percent as tire sales fell around the world, but its adjusted earnings easily beat Wall Street expectations.
Shares of the tire maker rose more than 5 percent Wednesday afternoon.
Goodyear reported net income of $161 million, or 58 cents per share, in the quarter ending Sept. 30, compared with $166 million, or 62 cents per share, in the same quarter a year ago.
Adjusted to remove certain one-time items, the company earned 87 cents per share. Analysts expected 70 cents, according to FactSet.
Revenue fell 6.9 percent to $4.7 billion from $5 billion, and missed Wall Street forecasts. Analysts expected revenue of $4.9 billion.
The Akron-based company said replacement tire shipments were down 1 percent, due primarily to a decline in North America — where markets were disrupted due to stockpiling of imported, low-end tires in advance of potential tariffs being imposed in 2015.
Still, Goodyear said it had record North American earnings for the third quarter of $210 million, an increase of 30 percent over the same period a year ago. Earnings were up 57 percent for Europe, Middle East and Africa, with $181 million in sales.
In a conference call with financial analysts, Goodyear Chairman and Chief Executive Officer Richard J. Kramer said he was pleased with the company’s results.
“It’s easy to stay on strategy and deliver strong financial results in a robust economy, but the real value of a strategy can be seen when record results are delivered even in the midst of volatile market conditions,” he said.
The company reaffirmed its 2014 to 2016 financial targets, which include segment operating income growth of between 10 percent and 15 percent per year.
Shares of Goodyear rose $1.14 to $22.99 in afternoon trading. They had been as high as $24.01 earlier in the day.