Goodyear posts first quarter loss

Tyre maker Goodyear has posted a first quarter loss of $US58 million ($A62 million) which can be explained by Venezuelan currency charges and a severe winter in North America. reports that the loss added up to 23 cents per share. It compares with the profit of made $US26 million, or 10 cents per share for the same period last year.

The company said in a statement that, because of cold weather, sales in the North American market fell from 14.8 million to 14.6 million.

As Reuters reports, January and February were bad months for the whole North American auto industry. However, sales stared to pick up in March.

The result was also affected by the economic climate in Venezuela, a nation which contributed about 2 percent of the company's revenue in 2013.

This was exacerbated by an industrial relations dispute in the company’s Venezuelan plant.

"While the situation in Venezuela will remain volatile, we expect our volumes to increase in the second quarter, given the conclusion of our labour negotiations," Good year Chief Executive Richard Kramer said on a conference call with analysts.

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