Goodyear Tire tops revenue estimates on replacement tire demand

FILE PHOTO: A U.S. flag flies at a Goodyear Tire facility in Somerville

(Reuters) -Goodyear Tire & Rubber Co topped Wall Street estimates for quarterly revenue on Friday, boosted by demand for its replacement tires, sending shares up nearly 3%.

Demand for new vehicles in the United States is strong as consumers focus on personal safety and opt for private vehicles during the COVID-19 pandemic. Low interest rates and stimulus checks also boosted sales.

“Our consumer replacement business delivered outstanding results. By leveraging improved distribution and new products, we outperformed the industry,” said Goodyear Chief Executive Officer Richard Kramer.

Goodyear said tire volumes rose 12% to 35 million units in the quarter, while replacement tire volumes jumped 14%.

Excluding items, the company earned 43 cents per share.

The company reported a net income of $12 million, or 5 cents per share, in the quarter ended March 31, compared with a net loss of $619 million, or $2.65 per share, a year earlier.

Net sales rose 14.9% to $3.51 billion, beating estimates of $3.40 billion, according to Refinitiv data.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel)