Yesterday Goodyear Tire and Rubber (GT) reported 3Q earnings of $0.68 per share, a 168% increase from the same quarter a year earlier. What impresses me is the way they achieve profits- which are based on basic finance and accounting textbook style.
a. Focus on selling higher-margin and higher-priced tires
b. Production cut on private-label tires with lower profit margin
c. 47% increase in operating profits on 3.1% rise in sales
d. Weaker dollar help to boost operating profits overseas
e. Cost cuts (reflected by 30 bps decline in COGS) played a role in offseting high raw-material prices and slowing North American tire demand
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