Shares of Goodyear Tire & Rubber Co. sank 2.4% in afternoon trading Friday, reversing an earlier intraday gain of as much as 2.0%, after the tire seller reported first quarter earnings that beat expectations, but also more than doubled its full-year outlook for raw materials cost increases. Chief Financial Officer Darren Wells said on the post-earnings conference with analysts that raw materials costs for 2021 are expected to increase by $325 million to $375 million, largely in the second half of the year, compared with previous estimates for an increase of $125 million to $175 million. For the first quarter, however, raw material costs actually declined by $15 million, but prices increases were expected to “catch up some” over the coming quarters. Meanwhile, pricing in the quarter improved by $64 million as the company raised prices ahead of the raw material price increases.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.