GOODYEAR TIRE & RUBBER CO. $22.59 Nasdaq symbol GT

GOODYEAR TIRE & RUBBER CO. $22.59 (Nasdaq symbol GT; TSINetwork Rating: Extra Risk) (330-796-2122; www.goodyear.com; Shares outstanding: 246.9 million; Market cap: $5.6 billion; Dividend yield: 0.9%) is the world’s largest tire maker, with 52 plants in 22 countries.

In the quarter ended September 30, 2013, the weak global economy lowered Goodyear’s sales by 5.0%, to $5.0 billion from $5.3 billion a year earlier.

North American sales fell 9.1%, to $2.2 billion from $2.4 billion. As well, sales declined by 9.2% in Asia. That offset a slight increase in Europe, the Middle East and Africa, and a 1.3% rise in Latin America. Earnings per share climbed sharply, to $0.68 from $0.45. That was higher than the consensus estimate of $0.67. The higher profits came from the company’s North American operations, which sold more replacement tires (they’re more profitable than new car tires) and successfully cut its costs.

The stock trades at 8.2 times the $2.75 a share that Goodyear will likely earn in 2014.

The company resumed paying dividends with a quarterly payment of $0.05 a share in December 2013. That gives the stock a 0.9% yield, based on today’s price. Goodyear last paid a dividend in December 2002.

Goodyear Tire & Rubber is still a buy.

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