Goodyear's shares price has yet to move 'forward'
22 Apr 2024
Akron tire maker's stock value declined by almost 6% in the four weeks to 19 April
London – There has been little sign yet of a pick-up in the value of Goodyear shares under the new management team put in place to revive group profitability.
Based on current share-price trends (see table), Goodyear is significantly under-performing other major global tire makers – though this, of course, could change.
According to ERJ's analysis, shares in the Akron group declined by 6% since mid-March, to close the trading week ended 19 April well under $12.00.
This compares to a prior-year peak of around $16.00, last July, well before the new management regime took control.
Last November, Goodyear rolled out a major group-wide rationalisation programme aimed at delivering annual, run-rate gains of $1 billion.
Driven by a series of major cost-reductions, including plant closures, the plan targets a doubling in 'segment operating income margin' to 10% by the end of 2025.
The 'Goodyear Forward' initiative also targets returns of over $2 billion (€1.8 billion) from the divestments, including the group's synthetic rubber production operations.
Further indications of how the plan is progressing should emerge when Goodyear's results for the first quarter are issued in May.
