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Goodyear 2Q earnings up 43 percent

Goodyear Tire & Rubber Co. earning increase came along with a 24 percent increase in revenue. Goodyear CEO says earnings will be 'difficult to repeat.'

In this July 16, 2011 photo, stacks of Goodyear tires are lined up at the New Hampshire Motor Speedway, in Loudon, NH. Goodyear Tire & Rubber Co.'s second-quarter earnings surged 43 percent, helped by a 24 percent sales increase.

Toby Talbot / AP / File

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CLEVELAND (AP) — Goodyear Tire & Rubber Co. reported a 43 percent surge in second-quarter earnings Thursday, helped by a 24 percent revenue increase.

But Chairman and CEO Richard J. Kramer expressed caution Thursday about its core North American market, however.

"These results will be difficult to repeat in the second half because of increasing raw material cost challenges and uncertain economic conditions," he said.

Goodyear is the biggest tire maker in North America and the third biggest in the world.

Its shares dropped $1.24, or 7.2 percent, to close Thursday at $15.93.

The Akron-based company said its net income rose to $40 million, or 16 cents per share, in the three months ending June 30 from $28 million, or 11 cents per share, a year ago.

Excluding one-time charges, the company earned 65 cents per share. That beat Wall Street's average estimate of 25 cents per share, according to a survey of analysts by FactSet. Analysts typically exclude one-time items from estimates.

Revenue rose to $5.6 billion from $4.5 billion a year earlier. Analysts had forecast $5.2 billion in revenue.

An improved price-mix helped Goodyear overcome a 2 percent decline in the number of tires sold, reflecting weaker automotive industry production, particularly in North America.


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