Goodyear Tire & Rubber Co. (NYSE: GY), the largest U.S. tire maker reported a fourth quarter loss after a 12 week strike resulted in a $367 million loss of net income.
The effects of the labor dispute led the company into negative territory in the fourth quarter after posting a in the same quarter last year. The Akron, Ohio-based firm said Friday that its net loss was $358 million, or $2.02 per share. In 2005, the company earned $51 million, or 29 cents per share.
â€œLooking beyond the impact of the strike and our restructuring actions one can see the true performance of our business and the significant strength in the underlying results,â€ said Robert Keegan, chairman and chief executive at Goodyear. â€œA series of courageous decisions and successful execution against our plans in 2006 position our company well for earnings growth now, and for cash flow acceleration in 2008 and beyond.â€
The strike at 16 of its North American facilities reduced 2006 sales by $363 million and tire volume by 2.8 million units, the company said. Total sales were up 1 percent to $4.98 billion.
The losses due to the strike dragged down North American sales, which fell 11 percent. The net loss was $301 million, compared to a $43 million gain in 2005.
Global segments outside North America all posted a profit. The EU segment and the Eastern Europe, Middle East and Africa segment rose. Its Latin American and Asia Pacific segments also posted gains.
Engineered products declined 14 percent, largely due to the strike, the company said.
Shares of Goodyear were down 0.43 percent, or 11 cents, to $25.30 in early morning trading on the New York Stock Exchange.