Where Will Goodyear Be in 3 Years?

Goodyear's (NASDAQ: GT) recent acquisition of Cooper Tires is the key to understanding where the company will be in a few years. The deal significantly strengthens Goodyear in key end markets and geographies. In addition, it promises to boost the company's earnings margin -- a major plus in a mature industry where businesses are struggling to grow the top line. So let's take a closer look at where Goodyear will be in a few years.

The deal joins the third-biggest tire manufacturer globally (No. 1 in the U.S.) with the 13th-biggest global player and fifth-largest tire manufacturer in the U.S. It immediately adds scale to Goodyear's operations. The combination will add Goodyear's 30 global plants to Cooper's eight and allow the combined company to start generating costs savings through rationalizing operations in common and reducing logistics and procurement costs.

Image source: Getty Images.

Continue reading


Source Fool.com