NEW YORK (CNNfn) - Goodyear Tire & Rubber Co. warned Thursday it won't see the expected profit gain in the second quarter, citing reduced sales and higher prices of raw materials.|
The Akron, Ohio-based company said earnings before special charges should be about equal to year-ago results, which it said were 37 cents a share before special items.
Earnings tracker First Call forecast the company would earn 58 cents a share, and the forecast had been as high as 69 cents a share two months ago. First Call lists Goodyear's year-earlier earnings at 41 cents a share since it includes a 4 cent a share restructuring charge reversal in that period.
The company raised product prices in March and April and expected competitors to follow. But instead, tire prices dropped and Goodyear saw its volume drop as a result. It said the weakening euro and British pound during the period also hurt results.
Goodyear, the world's largest tire manufacturer, beat estimates in the first quarter, but saw drops in profits most of last year.
Shares of Goodyear (GT: Research, Estimates) lost 1-5/16, or 5.6 percent, to 22 in morning trading Thursday.