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Goodyear Announces Hub Expansion to Bolster EMEA Presence
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The Goodyear Tire & Rubber Company (GT - Free Report) will expand its production hub at Kranj, Slovenia, to increase tire production. Rise in demand for premium tires across EMEA impelled the company to raise production at its Slovenian plant and reap benefits from the increasing demand in this lucrative region.
Goodyear will invest €94 million to add 5400 square meter area in this existing facility. The extended area will be used to store tire-building machines, which will help Goodyear to produce an additional 1.8 million premium larger-rim-diameter tires by 2022. The production will be focused on 17 to 19-inch replacement consumer tires for EMEA.
The construction of the expanded hub will start from January 2019 while the subsequent phases to complete the construction are planned for 2020 and 2021. The facility is anticipated to create 160 job positions, majorly for the production area.
The Goodyear Tire & Rubber Company Price and Consensus
During third-quarter 2018, Goodyear’s EMEA segment delivered solid volume growth, owing to the start of winter tire sales and consumer replacements. Further, surge in demand for premium tires in Europe aided the EMEA business to deliver operating income growth of more than 20%.
Similarly, the Americas segment witnessed surge in volume due to improved industry condition and favorable economic conditions. However, high volume in the Americas and EMEA segments were offset by unfavorable foreign currency fluctuation. During the quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate while revenues were almost in line.
For 2018, Goodyear expects segmental operating income to exceed $1.3 billion against $1.45-$1.5 billion mentioned earlier. A challenging industry environment, soft market conditions in China and unfavorable currency translation compelled the company to reduce its operating income expectation.
Over the past three months, the Goodyear’s stock has lost 16.9%, underperforming 11.9% decrease recorded by the industry it belongs to.
Zacks Rank & Stocks to Consider
Goodyear currently has a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Tesla, Inc. (TSLA - Free Report) , and Cooper Tire & Rubber Company . Fox Factory and Tesla currently sport a Zacks Rank #1 (Strong Buy) while Cooper Tire carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 27.4% over the past six months.
Tesla has an expected long-term growth rate of 35%. Shares of the company have rallied 11.4% over the past three months.
Cooper Tire has an expected long-term growth rate of 12%. Over the past three months, shares of the company have gained 2.8%.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Goodyear Announces Hub Expansion to Bolster EMEA Presence
The Goodyear Tire & Rubber Company (GT - Free Report) will expand its production hub at Kranj, Slovenia, to increase tire production. Rise in demand for premium tires across EMEA impelled the company to raise production at its Slovenian plant and reap benefits from the increasing demand in this lucrative region.
Goodyear will invest €94 million to add 5400 square meter area in this existing facility. The extended area will be used to store tire-building machines, which will help Goodyear to produce an additional 1.8 million premium larger-rim-diameter tires by 2022. The production will be focused on 17 to 19-inch replacement consumer tires for EMEA.
The construction of the expanded hub will start from January 2019 while the subsequent phases to complete the construction are planned for 2020 and 2021. The facility is anticipated to create 160 job positions, majorly for the production area.
The Goodyear Tire & Rubber Company Price and Consensus
The Goodyear Tire & Rubber Company Price and Consensus | The Goodyear Tire & Rubber Company Quote
During third-quarter 2018, Goodyear’s EMEA segment delivered solid volume growth, owing to the start of winter tire sales and consumer replacements. Further, surge in demand for premium tires in Europe aided the EMEA business to deliver operating income growth of more than 20%.
Similarly, the Americas segment witnessed surge in volume due to improved industry condition and favorable economic conditions. However, high volume in the Americas and EMEA segments were offset by unfavorable foreign currency fluctuation. During the quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate while revenues were almost in line.
For 2018, Goodyear expects segmental operating income to exceed $1.3 billion against $1.45-$1.5 billion mentioned earlier. A challenging industry environment, soft market conditions in China and unfavorable currency translation compelled the company to reduce its operating income expectation.
Over the past three months, the Goodyear’s stock has lost 16.9%, underperforming 11.9% decrease recorded by the industry it belongs to.
Zacks Rank & Stocks to Consider
Goodyear currently has a Zacks Rank #4 (Sell). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation (FOXF - Free Report) , Tesla, Inc. (TSLA - Free Report) , and Cooper Tire & Rubber Company . Fox Factory and Tesla currently sport a Zacks Rank #1 (Strong Buy) while Cooper Tire carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 27.4% over the past six months.
Tesla has an expected long-term growth rate of 35%. Shares of the company have rallied 11.4% over the past three months.
Cooper Tire has an expected long-term growth rate of 12%. Over the past three months, shares of the company have gained 2.8%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>