Goodyear Tire: Are Investors Ignoring Operating Margin Improvements?
- The 10% decline in GT shares following Q1 results suggest investors may have over-reacted.
- Management has been aggressively focused on improving the company's liquidity profile.
- The recent $1.15 billion cash contribution to GT pension plan will improve earnings and cash-flow.
- Ongoing efforts to improve margins and reduce pro forma leverage not priced into GT shares.