Goodyear Posts Quarterly Loss as Strike Weighs

Goodyear Tire & Rubber, the largest U.S. tire maker, reported a wider quarterly loss Friday due to a nearly three-month strike by union workers in North America that cost the company $367 million.

The net loss widened to $358 million, or $2.02 per share, in the fourth quarter, from $51 million, or 29 cents per share,a year earlier, when Goodyear took a loss on asset sales.

Revenue rose less than 1% to $4.98 billion.

Goodyear earned 22 cents per share when excluding a $2.07 per share hit from the strike, restructuring charges of $1.03 per share, and a one-time gain of 86 cents per share for resolving a tax contingency.

About 15,000 members of the United Steelworkers union were on strike at Goodyear plants in the United States and Canada for most of the fourth quarter. The labor pact that ended the strike allows Goodyear to close a Texas plant and establishes a company-financed trust fund for union retiree health care.

Through Thursday, Goodyear shares were up 21% since the start of 2007, when workers ratified the new contract and began returning to work, compared with an 11.5% rise in the Dow Jones U.S. automobiles and parts index.