Thursday, May 05, 2005

Replacement market helps Goodyear swing to profit - Automobiles - Manufacturing - Earnings


The reason most people miss the big gains in GT is because they think in terms of car tires. The big money made by GT is in big industrial tires and products. Car tires are a commodity type business. Off road tires and hoses for huge mining machines command big prices with big profit margins. The economy for the next four years or so will be a "business" economy. Industrial hoses, belts and pulleys will be purchased.

GT revenues increased 11% last year. The business is a highly levered business. Debt has been refinanced and is being paid down. Good year ahead for Goodyear!