Goodyear Tire & Rubber Co reported a profit that was more than four times what Wall Street expected, with strength in its home North American market pushing quarterly sales to an all-time high, and its shares jumped more than 10 percent.
Excluding one-time items, the Akron, Ohio-based tire maker earned 51 cents a share in the first quarter, easily topping the analysts' average estimate of 12 cents, according to Thomson Reuters I/B/E/S.
Earnings from two other major automotive suppliers, Lear Corp and American Axle and Manufacturing Holding Inc , also blew past Wall Street's profit expectations on Friday, a sign that the auto industry recovery is gaining momentum globally and particularly in North America.
Goodyear Chief Executive Officer Richard Kramer said the company's North American business is a critical element to achieving our targets. North American Tire's first quarter performance strengthens my confidence in our future.
Goodyear's first-quarter sales of $5.4 billion were up 27 percent from a year earlier.
Kramer pointed to a 15 percent increase in prices per tire during the quarter as one of the major reasons for its reversal from a year-earlier loss.
The company's net income of $103 million, or 42 cents per share, compares with a year-earlier net loss of $47 million, or 19 cents per share.
Goodyear shares were up 10.3 percent at $17.86 in trading before the market opened.
(Reporting by Bernie Woodall, editing by Gerald E. McCormick and Lisa Von Ahn)