I priced tires today and the prices have doubled since I last bought tires a few years ago. Why haven't Goodyear's profits gone up significantly? I discount the oil up and rubber prices being high argument. Oil isn't as high as it was in 2008. Just curious.
I appreciate the responses. What I have gathered is: 35% duty started the ball rolling and then the gouging started. I'm not sure where the money has gone. The duty is only for imported tires .. so .. the profits should be up by a large margin. What the heck am I missing?
Well......its like this, GT pays about 1 million dollars per day in interest. The pensions are underfunded about 1.7 billion. THEN.......some wise guy thinks they need to build a NEW CORPORATE OFFICE IN AKRON. The debt/equity ratio is about 450/1. The last time I check the debt was still JUNK RATED......(oopsie I mean HIGH YIELD).......its like a step-kid at college with a credit card!..............IMO just buy CTB stock and forget about it!
When you close one of your best and most modern facility and keep open your oldest worst plants you have to raise prices... That's the facts plain and simple ...Union City was one of the best plant on an unlevel playing field and Goodyear closed it out of spite...
Why haven't Goodyears profit gone up ........ Got to service that debt and pay the non-tire background CEO, BOD's and the cast of thousands of VP's and Directors that are mostly unproductive overhead.
Try a differant brand. Just compare how many miles they are rated for and you will get an apples to apples comparison. Examples are 50k miles from one company vs. 50k miles from another company........60k miles vs 60k miles etc.. Everything else is just B.S.
You answered a question with a question, U must be in GT management where evasive responses to issues are commonplace. Tire prices have gone up because of inflation to raw material's costs, and they still can't make real money on a regular basis. The USW labor costs are nominal and shrinking. Management salary costs are exorbitant and rising rapidly.