GO
Loading...

Goodyear Posts Quarterly Loss as Strike Weighs

Reuters
Friday, 16 Feb 2007 | 8:16 AM ET

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.

  Price   Change %Change
GT
---

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Bitcoin. Digital gold rush or a shadowy tool empowering criminals on the dark web? What is really driving The Bitcoin Uprising? CNBC's Mary Thompson takes an in-depth look at this emerging digital currency by speaking to the bitcoin faithful, who believe the open source currency will upend the global financial system, as well as those who believe bitcoin is an easily manipulated tool that empowers criminals, hackers and drug barons in the dark online underworld. Although the future of bitcoin is uncertain, The Bitcoin Uprising sheds much needed light on the speculative currency and the future of money.

  • Loyalists around the world have embraced it as the cryptocurrency of the future, but some big names on the street differ widely in their beliefs about bitcoin. The Oracle of Omaha thinks it's a "joke." Tech entrepreneur Marc Andreessen counters that Buffett is out of touch, while bitcoin believers like Jonathan Rumion fully embrace the digital currency by buying groceries with bitcoin and even getting paid in bitcoin. CNBC's Mary Thompson reports.

  • Authorities say the online black-market bazaar Silk Road could be the tip of the iceberg when it comes to the criminal underworld using bitcoin for trading in illicit goods and services. On the "Dark Web," fake IDs, drugs, even hit men are all paid in bitcoin. CNBC's Mary Thompson explores why bitcoin is the currency of choice for criminal activity on the dark web and reports on the story of Mt. Gox, the largest bitcoin exchange, which shut down in February, leaving bitcoin investors holding the bag.