Ohio tyre company Goodyear’s shares had fallen to 32$ last Friday as the third-quarter net income and revenue of the company dropped due to tyre sales decrease in Europe.
The company reported a net income of US$100 million or 41 cents per share, for the past quarter which ended in September 30. This is down to 19 cents per share, as earlier this year, the net income of the company was US$161 million or 60 cents per share.
The revenue of the company which is thought to be caused by the slowing European economy and demand of tyres fell to 13% to US$5.26 billion.
Richard J. Kramer, Chairman and CEO of Goodyear still anticipate an income of US$1. 6 billion in the segment operating and a higher cash flow in 2013. But said that the company has to change its techniques.
The company will cut costs in Europe and Latin America to see better results.
Chief Financial Officer Darren R. Wells said that the company is looking at other methods to cut the cost next year.
“We’re looking at what actions we’re going to need to take to the extent we continue to see a soft-volume environment, and what actions we would have to take if the volume environment is even weaker than we expect,” he said. The company, he said, will study manufacturing costs, particularly in Europe. (RJA)