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What: Shares of Goodyear Tire & Rubber
So what: "Goodyear Posts Loss, Closes Tennessee Plant," cries a Wall Street Journal headline. That doesn't sound like much reason to celebrate, but the GAAP loss stems from one-time items, and the plant closure is a cost-cutting move made possible by a renegotiated union deal.
Now what: Goodyear also reported 12% higher sale prices per tire year over year, mostly thanks to a higher-end product mix. Management calls it a "selective approach to the business," but there's clearly still a lot of work to be done. Despite the high-end ambitions, Goodyear sports among the weakest profit margins in the auto-parts industry. Fellow Fool Alex Dumortier sees a potential short opportunity in this stock.
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.