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Goodyear Analysis

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Goodyear Financial Analysis

Writing Assignment: Financial Analysis
Assume you are a savvy financial analyst researching companies in which to invest.
Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis.

FIN 534: Financial Management - Quarter (Winter 2013)


March 12, 2013

Goodyear Financial Analysis

Company Overview

The Goodyear Tire & Rubber Company a leading manufacturer of tires is one of the best in the world and one of the most recognizable brand names in the world (Edgar). Goodyear has operations in most regions of the world with 52 manufacturing facilities in 22 countries, including the United States (Edgar). Goodyear regional tire businessesconsists of the following four segments: North American Tire; Europe, Middle East and Africa Tire; Latin American Tire; and Asia Pacific Tire (Edgar).

Despite the conditions in 2012 Goodyear has done fairly well in the continued weak industry conditions (Edgar). The economic recovery in the developed markets and the uncertainty surrounding debt and other fiscal policy issues in Europe and the U. S. and along with continued high levels of unemployment, all have contributed to a negative impact on overall economic conditions and customer and consumer confidence. Goodyear tire unit shipments in 2012 only decreased 9.2% compared to 2011, primarily as a result of continued weakness in Europe (Edgar). In addition, Goodyear's raw material costs rose by approximately 7% in 2012 compared to 2011 (Edgar).

In 2012 Goodyear faced some daunting macroeconomic and industry-specific challenges, inspite of these challenges "Goodyear produced segment operating income greater than $1.2 billion for the second consecutive year, including record segment operating income of $514 million in North American Tire"…...

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