2024-01-30 05:19:05 ET
Summary
- Goodyear's acquisition of Cooper Tire & Rubber in 2021 resulted in a debt overhang amidst inflationary pressures, impacting the business and investment case.
- Activist investor Elliott Management will drive changes in the company, including a transformation plan focused on portfolio optimization, margin expansion, and debt reduction.
- The implementation of the plan could lead to improved earnings power, however, execution and confirmation of initial results are needed.
In the final days of 2022, I called the year not a good one, in the case of Goodyear ( GT ) . This came after the company acquired Cooper Tire & Rubber early in 2021, in an effort to drive industry consolidation and boost the prospects for sustainable margin improvements....
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Goodyear: Rolling Into 2024