Goodyear Tire and Rubber Co, the largest tire maker in the U.S. by sales reported a quarterly profit that was better than had been expected helped from a higher demand in the region of North America and lower costs.
Goodyear said tire shipments for North America were up 3.3% to 15.7 million during the quarter that ended on June 30, from the previous year.
Operator earnings for the region were up by 54% to more than $321 million.
A rise in domestic sales slightly offset impact from the strong U.S. dollar in its businesses across Europe, Latin America and Asia.
The dollar rose by 9% during the first quarter of 2015 against a host of major world currencies.
Although the dollar took a slight breather during the second three months of this year, it is expected to increase by 5% during the second six months of 2015.
Goodyear, which receives over half its overall revenue from outside the U.S., said its cost of goods sold dropped by 14% during the quarter, while selling, administrative and general expenses dropped by 7%.
The net income attributable to shareholders dropped by 9.9% to just over $192 million equal to 70 cents a share.
Excluding certain items, Goodyear’s per share earnings were 84 cents, which was above the estimate by analysts of 75 cents.
Total revenue was down by 10% to just over $4.17 billion but was able to beat estimates by analysts of $4.12 billion.
Through the close of business on Tuesday, Goodyear has increased 7% over the last 12 months.
The company sells tires under the name of Goodyear, Kelly, Fulda, Dunlop, Debica, Sava as well as other brands. The company launches innovative types of products to increase its sales.
Although Goodyear is generating sales worldwide as previously mentioned North America is its largest market. The company has also made expansions in many emerging markets to help boost its profits.
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