Shares of Goodyear Tire & Rubber Co. (NASDAQ:GT) were punished on Wednesday after the Ohio-based tire maker posted weaker-than-expected earnings on low demand and higher raw material costs.
Shares fell 1.38% to US$26.50 in pre-market trade.
The tire maker posted first-quarter March 2018 earnings of US$75 mln, or US$0.31 a share, compared with US$166 mln, or US$0.65, for the same period last year. Analysts expected a profit of US$103 mln, according to FactSet.
Sales rose to US$3.83bn, from US$3.70 bn for the first quarter. This compares with analysts’ forecasts of US$3.77 billion, according to Marketwatch.
"We are pleased with our first quarter results given higher raw material costs and weaker demand than we expected in the quarter," CEO Richard J. Kramer said in an earnings statement.
"These results were highlighted by our performance in the 17-inch-and-larger segment in consumer replacement, which delivered more than double the industry growth in the U.S. and Europe," he added.