The Goodyear Tire & Rubber Co. posted a profit for the third quarter on a 22 percent rise in revenue Friday as its strategy of promoting high-end tires paid off even as the number of tires it sold was unchanged.
The Akron, Ohio-based company, the biggest U.S. tiremaker and third largest globally, said its revenue was the highest for any quarter in its history.
Its shares closed up 56 cents, or nearly 4 percent, at $14.84. The shares are up 78 percent from their 52-week low of $8.53 early this month. They peaked May 10 at a high for the past year of $18.83.
Goodyear, which owns the Dunlop tire plant in the Town of Tonawanda, reported net income of $161 million, or 60 cents per share, in the three months ended Sept. 30. It lost $20 million, or 8 cents a share, in the same quarter a year ago.
Excluding one-time items, the company earned 72 cents per share. That beat the average analyst forecast of 23 cents per share, according to a survey by FactSet.
Goodyear took a charge of 13 cents per share related to the shutdown earlier this year of its Union City, Tenn., plant, which employed about 1,800.
Revenue rose to $6.1 billion from $5 billion a year ago. Analysts expected $6.26 billion.
Revenue was up 18 percent in North America, 31 percent in Goodyear's Europe-Middle East-Africa region, 14 percent in Latin America and 21 percent in Asia-Pacific.
"Our teams did an excellent job offsetting higher raw material costs with improved price/mix and selling new, innovative products in targeted market segments," Richard J. Kramer, chairman and CEO, said in a statement.
He told analysts in a conference call that the earnings came despite flat numbers of tires sold -- 47.7 million.
For the first nine months of the year, Goodyear reported net income of $303 million, or $1.19 per share, on sales of $17.1 billion. A year ago, it lost $39 million, or 16 cents per share, on sales of $13.8 billion.