netrashetty
Netra Shetty
GHD Pty Ltd (formerly known as Gutteridge Haskins & Davey) is a leading engineering, architecture and environmental consulting firm.
Established in 1928, GHD employs more than 6000 people across five continents and serves clients in the global markets of water, energy and resources, environment, property and buildings, and transportation.
The company employs engineers, architects, planners, scientists, project managements and economist to deliver sustainable outcomes to clients and communities around the world.
GHD is a member of the World Business Council for Sustainable development and operates under a Practice Quality Management System, ISO 9001: 2008 and an Environmental Management System, ISO 14001:2004 which are certified by Lloyds Register Quality Assurance.
The Goodyear Tire and Rubber Company (NYSE:GT) is a vertically integrated developer, manufacturer and distributor of tires with 96 manufacturing facilities in 28 countries. During FY2009, Goodyear posted net sales of $16.3 billion.[1]
On September 18, 2009, Goodyear signed a four-year master labor contract pertaining to Goodyear's tire production in seven North American plants that was ratified by members of the United Steelworkers Union (USW). The new contract builds on changes made after the post-2006 strikes agreements. The 2009 contract attempts to increased productivity in how Goodyear's plants are run, lower Goodyear's overall cost structure in regards to its wage and benefit savings, and increase flexibility so Goodyear can respond to changes in market conditions.[2] The new contract are expected to provide Goodyear with cost savings of approximately $215 million over the term of the four-year contract.[2]
Company Overview
Goodyear's FY2009 Tire Sales by Region[3]
In FY2009, Goodyear categorized its company's business segments by geographic region, a change from prior which separated between "Original Equipment Tires" and "Replacement Tires." For each geographic region, Goodyear continues to subdivide each region into the two original segments.
Original Equipment Tires (23.3% of FY2009 Total Tire Sales) are new tires bought by manufactures to fit the specific needs of its vehicles. Within this category, Goodyear produces produces tires for passenger cars, light trucks, trucks and specialty vehicles.
Contents
1 Company Overview
1.1 North American Tire (37.5% of FY2009 Total Tire Sales)
1.2 Europe, Middle East and Africa Tire (39.5% of FY2009 Total Tire Sales)
1.3 Latin American Tire (11.4% of FY2009 Total Tire Sales)
1.4 Asia Pacific Tire (11.5% of FY2009 Total Tire Sales)
1.5 Q3 FY2009 Summary
1.6 Q4 FY2009 Summary
1.7 Q1 FY2010 Earnings Summary
1.8 Q2 FY2010 Earnings Summary
1.9 Q3 FY2010 Earnings Summary
2 Key Trends and Forces
2.1 Despite the Use of Derivatives, Fluctuating Raw Material Costs Hamper GT's Profitability
2.2 Because a Weak Dollar Discourages Imports from Abroad, a Weak Dollar Drives Profits for GT
2.3 Goodyear's Sales are Highly Dependent upon International Operations
3 Competition
4 References
Replacement Tires' (76.7% of FY2009 Total Tire Sales) consist of tires bought by consumers to replace the tires on their vehicles.
North American Tire (37.5% of FY2009 Total Tire Sales)
North American Tire is GT's largest segment by FY2009 revenue. The segment develops, manufactures, distributes and sells tires and related products and services in the United States and Canada. North American Tire manufactures tires in eight plants in the United States and two plants in Canada.[4]
North American Tire primarily manufactures and sells tires for automobiles, trucks, motorcycles, buses, earthmoving and mining equipment, commercial and military aviation and industrial equipment, and for various other applications. It is also a major supplier of tires to most manufacturers of automobiles, motorcycles, trucks and aircraft that have production facilities located in North America. Goodyear's major competitors in North America include Bridgestone and Michelin.
Europe, Middle East and Africa Tire (39.5% of FY2009 Total Tire Sales)
Europe, Middle East and Africa Tire (“EMEA”) is GT's second largest segment in terms of revenue. The business segment develops, manufactures, distributes and sells tires for automobiles, motorcycles, trucks, farm implements and construction equipment throughout EMEA. It is also a significant supplier of tires to most manufacturers of automobiles, trucks and farm and construction equipment located in the area.[5]
EMEA’s main competitors are Michelin, Bridgestone, Continental, Pirelli, several regional and local tire producers and imports from other regions, primarily Asia.[6]
Latin American Tire (11.4% of FY2009 Total Tire Sales)
GT's Latin American Tire segment manufactures and sells automobile, truck and farm tires throughout Central and South America and in Mexico, sells tires to various export markets, retreads and sells commercial truck, aviation and OTR tires, and provides other products and services. Latin American Tire manufactures tires in six facilities in Brazil, Chile, Colombia, Peru and Venezuela. Significant competitors include Pirelli, Bridgestone, Michelin and Continental.[7]
Asia Pacific Tire (11.5% of FY2009 Total Tire Sales)
GT's Asia Pacific Tire segment manufactures and sells tires for automobiles, light and medium trucks, farm, construction and mining equipment and the aviation industry throughout the Asia Pacific region. Asia Pacific Tire manufactures tires in eight plants in China, India, Indonesia, Japan, Malaysia, Taiwan and Thailand. This segment’s major competitors are Bridgestone and Michelin.[8]
Q3 FY2009 Summary
Goodyear recorded its first profit for the first time in nine months for the third reporting quarter of FY2009; earnings more than doubled to $72 million this quarter compared to third quarter FY2008.[9] Goodyear's third quarter FY2009 sales were $4.4 billion, down 15% from FY2008 third quarter sales, but an 11% increase compared to FY2009 second quarter.[10] Goodyear associates these increases from reducing expenses by cutting output, shifting production to lower-cost plants (lower raw material costs of $105 million), and eliminating about 5,800 jobs this fiscal year, which include 300 jobs this quarter.[11] Furthermore, Goodyear launched 15 new product this quarter, which has partially contributed to its increased earnings.[12]
Despite improved third quarter earnings, GT's stock price dropped over 20% after Goodyear forecast an operating loss of $75 million to $125 million in North American in the fourth quarter.[13] The cause of the concern is that GT's North American business is the company's largest region by revenue.
Q4 FY2009 Summary
Goodyear posted earnings of $107 million for its fourth reporting quarter of FY2009, compared to a loss of $330 million from the fourth reporting quarter of FY2008.[14] GT attributes the increase in earnings to cost cuts and lower material expenses. In FY2009, Goodyear cut a total of 5,700 jobs, and trimmed costs by $730 million.[15] Goodyear's North American division, the business segment that has been declining in market share for the previous year, still posted a loss. GT's North America segment posted a loss of $27 million for the reporting quarter, but was better than GT's October forecast of a $73 million loss.[16] The loss was again attributed to cost cutting, but high raw material costs continue to hurt gross margin and weak commercial truck tire demand continue to stem top line growth. For example, sales in the North America division were down 3% to $1.9 billion compared to same reporting quarter in FY2008.[17]
On the other hand, Goodyear's International business segment reported increases in sales. For example, sales in Europe, Middle East, and Africa rose 11% to $1.6 billion due to improved demand on winter tires.[18] Sales in Latin America and Asia Pacific reported even better increases of 25% and 28%, respectively.[19]
Q1 FY2010 Earnings Summary
Goodyear posted a $47 million loss, or -19 cents a share, for the first reporting quarter of FY2010.[20] However, excluding charges led by a Venezuelan currency devaluation, Goodyear posted a profit of 18 cents a share.[21] Therefore, despite the negative bottom-line, Goodyear's top line showed a rise to $4.3 billion compared to $3.6 billion in the first reporting quarter of FY2009.[22] These gains were led in all Goodyear's global markets. For example, Goodyear's Asia-Pacific segment posted a 42% rise, with Latin America trailing at 25%, Europe-Middle East-Africa at 21%, then 15% at North America.[23]
Although North American growth was not as fast as Asia-Pacific, the number of tires sold in North America surged 45% over the same period in FY2009.[24] Nonetheless, product introductions continue to be the key strategy for Goodyear, to which it introduced 17 new products in the first quarter.[25]
Q2 FY2010 Earnings Summary
GT reported net income of $28 million profit ($0.11 EPS) for the second reporting quarter of FY2010, an increase compared to the net loss of $221 million (-$0.92 EPS) experienced same quarter FY2009.[26] Excluding extraordinary charges, the company would have made 12 cents per share, beating analyst expectations of $0.05 EPS.[27] Revenues rose 15% to $4.5 billion in Q2 FY2010 compared to same quarter one year ago.[28]
GT attributes better than expected earnings to increased demand from higher-end and Goodyear-branded tires that offset higher materials costs. For example, the number of tires sold increased 10% during the quarter. Further, on the international level, sales were up 21% in Latin America, 16% in Asia-Pacific, and 5% in Europe-Middle East-Africa.[29] Further, sales were positively impacted by $161 million USD from higher sales in other tire related businesses, particularly third-party chemical sales in N. America. However, unfavorable foreign currency translations reduced sales by $37 million USD.[30]
Q3 FY2010 Earnings Summary
GT reported a loss of $20 million for the third reporting quarter of FY2010 compared to a net income of $72 million same quarter last year.[31] Quarterly sales on the other hand rose 13% to $4.96 billion on a 6% increase in volume. GT's operating income was down $41 million to $234 million as higher prices and volumes were more than offset by the $81 million in increased raw materials costs, especially rubber, and $20 million hit in currency translations.[32] CEO Richard Kramer stated though that he plans to see raw material going up but have redoubled GT's efforts on product substitution.
Sales in North American markets rose 17% to $2.2 billion, the highest in two years, with total number of tires sold up by 5%; new vehicle tires rose by 12% in volume.[33] Contrary to recent historical performance where emerging market sales growth beat developed market growth, GT's Europe-Middle East-Africa region increased 7%, Asia-Pacific by 14%, and Latin America by 17%.[34]
Key Trends and Forces
Despite the Use of Derivatives, Fluctuating Raw Material Costs Hamper GT's Profitability
Together oil derivatives, in particular naptha, and natural rubber, account for about 88% (60% oil derivatives and 28% rubber) of a tire's raw material composition. Oil Prices have tripled and rubber prices have quadrupled in the past 3 ½ years. Natural rubber prices have been driven up by an increasing demand from China and poor weather conditions. Continued demand from China and a slow recovery of the rubber industry could keep rubber prices elevated and put pressure on Goodyear's profits.
Higher oil prices also mean higher gas prices, causing a decrease in Goodyear's original equipment (OE) tire sales. Higher gas and utility costs also slowed tire industry growth by decreasing income power for the low and middle income families. If oil prices decrease, then Goodyear could see greater profits and better industry growth.
Because a Weak Dollar Discourages Imports from Abroad, a Weak Dollar Drives Profits for GT
A CRT Capital Group analyst has called Goodyear "...poster child for people that benefit from a weak dollar."[35] This is true for two main reasons: decreased imports and improved currency effect on foreign sales. A weak dollar will greatly discourage imports from abroad. The pricing advantage of foreign firms that comes from cheap labor has been offset recently by the increase in their exchange rates and increase in dry bulk shipping rates. Since 62.5% of Goodyear's FY2009 total tire sales came from outside of North America, a weaker dollar benefits their bottom line in absolute terms.[36] These incoming cash flows will increase in nominal terms because of the foreign currency appreciation.
Goodyear's Sales are Highly Dependent upon International Operations
The North American Tire Segment made up about 37.5% of Goodyear's sales in FY2009.[37] In the recent years, Goodyear's sales have increasing become more and more dependent on its International operations. This is partly because Goodyear's operations in North America continuously have low or negative operating margins. In FY2009, for example, GT's "North America Tire" segment had consumer replacement volume decrease by 1.1 million units, or 2.3% due to the decline in consumer replacement volume is due in part to recessionary economic conditions in the U.S.[38] On the other hand, although in China, there are only 12 passenger cars per 1000 inhabitants compared 500 passenger cars per 1000 inhabitants in Western Europe, the number of car owners in China have been drastically increasing. These figures are consistent with other BRIC countries, which shows how since both Asia and Latin America have high growth potential, their development highly impacts Goodyear’s revenues.
Competition
Goodyear's top competitors are Michelin and Bridgestone. Goodyear is the third largest by market share behind Bridgestone and the leader Michelin. Both competitors are based overseas, Michelin in France and Bridgestone in Japan. Michelin is the leading producer in Europe and also is the leading producer in China. Bridgestone is the leading producer in Japan. Michellin, has a less favorable cost base than Goodyear but can charge higher prices due its superior technology. Through Bridgestone's combination of marketing and product mix it has been able to increase its sales dramatically in comparison to its competitors while charging higher prices.
Company Comparison in FY2009
Company Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Employees
Goodyear (2.23%) (2.19%) 3.56% (2.46%) 74,700
Michelin 0.70% 3.04% 9.38% 0.63% 106,010
Bridgestone 0.24% 2.02% 8.98% 0.22% 137,135
Established in 1928, GHD employs more than 6000 people across five continents and serves clients in the global markets of water, energy and resources, environment, property and buildings, and transportation.
The company employs engineers, architects, planners, scientists, project managements and economist to deliver sustainable outcomes to clients and communities around the world.
GHD is a member of the World Business Council for Sustainable development and operates under a Practice Quality Management System, ISO 9001: 2008 and an Environmental Management System, ISO 14001:2004 which are certified by Lloyds Register Quality Assurance.
The Goodyear Tire and Rubber Company (NYSE:GT) is a vertically integrated developer, manufacturer and distributor of tires with 96 manufacturing facilities in 28 countries. During FY2009, Goodyear posted net sales of $16.3 billion.[1]
On September 18, 2009, Goodyear signed a four-year master labor contract pertaining to Goodyear's tire production in seven North American plants that was ratified by members of the United Steelworkers Union (USW). The new contract builds on changes made after the post-2006 strikes agreements. The 2009 contract attempts to increased productivity in how Goodyear's plants are run, lower Goodyear's overall cost structure in regards to its wage and benefit savings, and increase flexibility so Goodyear can respond to changes in market conditions.[2] The new contract are expected to provide Goodyear with cost savings of approximately $215 million over the term of the four-year contract.[2]
Company Overview
Goodyear's FY2009 Tire Sales by Region[3]
In FY2009, Goodyear categorized its company's business segments by geographic region, a change from prior which separated between "Original Equipment Tires" and "Replacement Tires." For each geographic region, Goodyear continues to subdivide each region into the two original segments.
Original Equipment Tires (23.3% of FY2009 Total Tire Sales) are new tires bought by manufactures to fit the specific needs of its vehicles. Within this category, Goodyear produces produces tires for passenger cars, light trucks, trucks and specialty vehicles.
Contents
1 Company Overview
1.1 North American Tire (37.5% of FY2009 Total Tire Sales)
1.2 Europe, Middle East and Africa Tire (39.5% of FY2009 Total Tire Sales)
1.3 Latin American Tire (11.4% of FY2009 Total Tire Sales)
1.4 Asia Pacific Tire (11.5% of FY2009 Total Tire Sales)
1.5 Q3 FY2009 Summary
1.6 Q4 FY2009 Summary
1.7 Q1 FY2010 Earnings Summary
1.8 Q2 FY2010 Earnings Summary
1.9 Q3 FY2010 Earnings Summary
2 Key Trends and Forces
2.1 Despite the Use of Derivatives, Fluctuating Raw Material Costs Hamper GT's Profitability
2.2 Because a Weak Dollar Discourages Imports from Abroad, a Weak Dollar Drives Profits for GT
2.3 Goodyear's Sales are Highly Dependent upon International Operations
3 Competition
4 References
Replacement Tires' (76.7% of FY2009 Total Tire Sales) consist of tires bought by consumers to replace the tires on their vehicles.
North American Tire (37.5% of FY2009 Total Tire Sales)
North American Tire is GT's largest segment by FY2009 revenue. The segment develops, manufactures, distributes and sells tires and related products and services in the United States and Canada. North American Tire manufactures tires in eight plants in the United States and two plants in Canada.[4]
North American Tire primarily manufactures and sells tires for automobiles, trucks, motorcycles, buses, earthmoving and mining equipment, commercial and military aviation and industrial equipment, and for various other applications. It is also a major supplier of tires to most manufacturers of automobiles, motorcycles, trucks and aircraft that have production facilities located in North America. Goodyear's major competitors in North America include Bridgestone and Michelin.
Europe, Middle East and Africa Tire (39.5% of FY2009 Total Tire Sales)
Europe, Middle East and Africa Tire (“EMEA”) is GT's second largest segment in terms of revenue. The business segment develops, manufactures, distributes and sells tires for automobiles, motorcycles, trucks, farm implements and construction equipment throughout EMEA. It is also a significant supplier of tires to most manufacturers of automobiles, trucks and farm and construction equipment located in the area.[5]
EMEA’s main competitors are Michelin, Bridgestone, Continental, Pirelli, several regional and local tire producers and imports from other regions, primarily Asia.[6]
Latin American Tire (11.4% of FY2009 Total Tire Sales)
GT's Latin American Tire segment manufactures and sells automobile, truck and farm tires throughout Central and South America and in Mexico, sells tires to various export markets, retreads and sells commercial truck, aviation and OTR tires, and provides other products and services. Latin American Tire manufactures tires in six facilities in Brazil, Chile, Colombia, Peru and Venezuela. Significant competitors include Pirelli, Bridgestone, Michelin and Continental.[7]
Asia Pacific Tire (11.5% of FY2009 Total Tire Sales)
GT's Asia Pacific Tire segment manufactures and sells tires for automobiles, light and medium trucks, farm, construction and mining equipment and the aviation industry throughout the Asia Pacific region. Asia Pacific Tire manufactures tires in eight plants in China, India, Indonesia, Japan, Malaysia, Taiwan and Thailand. This segment’s major competitors are Bridgestone and Michelin.[8]
Q3 FY2009 Summary
Goodyear recorded its first profit for the first time in nine months for the third reporting quarter of FY2009; earnings more than doubled to $72 million this quarter compared to third quarter FY2008.[9] Goodyear's third quarter FY2009 sales were $4.4 billion, down 15% from FY2008 third quarter sales, but an 11% increase compared to FY2009 second quarter.[10] Goodyear associates these increases from reducing expenses by cutting output, shifting production to lower-cost plants (lower raw material costs of $105 million), and eliminating about 5,800 jobs this fiscal year, which include 300 jobs this quarter.[11] Furthermore, Goodyear launched 15 new product this quarter, which has partially contributed to its increased earnings.[12]
Despite improved third quarter earnings, GT's stock price dropped over 20% after Goodyear forecast an operating loss of $75 million to $125 million in North American in the fourth quarter.[13] The cause of the concern is that GT's North American business is the company's largest region by revenue.
Q4 FY2009 Summary
Goodyear posted earnings of $107 million for its fourth reporting quarter of FY2009, compared to a loss of $330 million from the fourth reporting quarter of FY2008.[14] GT attributes the increase in earnings to cost cuts and lower material expenses. In FY2009, Goodyear cut a total of 5,700 jobs, and trimmed costs by $730 million.[15] Goodyear's North American division, the business segment that has been declining in market share for the previous year, still posted a loss. GT's North America segment posted a loss of $27 million for the reporting quarter, but was better than GT's October forecast of a $73 million loss.[16] The loss was again attributed to cost cutting, but high raw material costs continue to hurt gross margin and weak commercial truck tire demand continue to stem top line growth. For example, sales in the North America division were down 3% to $1.9 billion compared to same reporting quarter in FY2008.[17]
On the other hand, Goodyear's International business segment reported increases in sales. For example, sales in Europe, Middle East, and Africa rose 11% to $1.6 billion due to improved demand on winter tires.[18] Sales in Latin America and Asia Pacific reported even better increases of 25% and 28%, respectively.[19]
Q1 FY2010 Earnings Summary
Goodyear posted a $47 million loss, or -19 cents a share, for the first reporting quarter of FY2010.[20] However, excluding charges led by a Venezuelan currency devaluation, Goodyear posted a profit of 18 cents a share.[21] Therefore, despite the negative bottom-line, Goodyear's top line showed a rise to $4.3 billion compared to $3.6 billion in the first reporting quarter of FY2009.[22] These gains were led in all Goodyear's global markets. For example, Goodyear's Asia-Pacific segment posted a 42% rise, with Latin America trailing at 25%, Europe-Middle East-Africa at 21%, then 15% at North America.[23]
Although North American growth was not as fast as Asia-Pacific, the number of tires sold in North America surged 45% over the same period in FY2009.[24] Nonetheless, product introductions continue to be the key strategy for Goodyear, to which it introduced 17 new products in the first quarter.[25]
Q2 FY2010 Earnings Summary
GT reported net income of $28 million profit ($0.11 EPS) for the second reporting quarter of FY2010, an increase compared to the net loss of $221 million (-$0.92 EPS) experienced same quarter FY2009.[26] Excluding extraordinary charges, the company would have made 12 cents per share, beating analyst expectations of $0.05 EPS.[27] Revenues rose 15% to $4.5 billion in Q2 FY2010 compared to same quarter one year ago.[28]
GT attributes better than expected earnings to increased demand from higher-end and Goodyear-branded tires that offset higher materials costs. For example, the number of tires sold increased 10% during the quarter. Further, on the international level, sales were up 21% in Latin America, 16% in Asia-Pacific, and 5% in Europe-Middle East-Africa.[29] Further, sales were positively impacted by $161 million USD from higher sales in other tire related businesses, particularly third-party chemical sales in N. America. However, unfavorable foreign currency translations reduced sales by $37 million USD.[30]
Q3 FY2010 Earnings Summary
GT reported a loss of $20 million for the third reporting quarter of FY2010 compared to a net income of $72 million same quarter last year.[31] Quarterly sales on the other hand rose 13% to $4.96 billion on a 6% increase in volume. GT's operating income was down $41 million to $234 million as higher prices and volumes were more than offset by the $81 million in increased raw materials costs, especially rubber, and $20 million hit in currency translations.[32] CEO Richard Kramer stated though that he plans to see raw material going up but have redoubled GT's efforts on product substitution.
Sales in North American markets rose 17% to $2.2 billion, the highest in two years, with total number of tires sold up by 5%; new vehicle tires rose by 12% in volume.[33] Contrary to recent historical performance where emerging market sales growth beat developed market growth, GT's Europe-Middle East-Africa region increased 7%, Asia-Pacific by 14%, and Latin America by 17%.[34]
Key Trends and Forces
Despite the Use of Derivatives, Fluctuating Raw Material Costs Hamper GT's Profitability
Together oil derivatives, in particular naptha, and natural rubber, account for about 88% (60% oil derivatives and 28% rubber) of a tire's raw material composition. Oil Prices have tripled and rubber prices have quadrupled in the past 3 ½ years. Natural rubber prices have been driven up by an increasing demand from China and poor weather conditions. Continued demand from China and a slow recovery of the rubber industry could keep rubber prices elevated and put pressure on Goodyear's profits.
Higher oil prices also mean higher gas prices, causing a decrease in Goodyear's original equipment (OE) tire sales. Higher gas and utility costs also slowed tire industry growth by decreasing income power for the low and middle income families. If oil prices decrease, then Goodyear could see greater profits and better industry growth.
Because a Weak Dollar Discourages Imports from Abroad, a Weak Dollar Drives Profits for GT
A CRT Capital Group analyst has called Goodyear "...poster child for people that benefit from a weak dollar."[35] This is true for two main reasons: decreased imports and improved currency effect on foreign sales. A weak dollar will greatly discourage imports from abroad. The pricing advantage of foreign firms that comes from cheap labor has been offset recently by the increase in their exchange rates and increase in dry bulk shipping rates. Since 62.5% of Goodyear's FY2009 total tire sales came from outside of North America, a weaker dollar benefits their bottom line in absolute terms.[36] These incoming cash flows will increase in nominal terms because of the foreign currency appreciation.
Goodyear's Sales are Highly Dependent upon International Operations
The North American Tire Segment made up about 37.5% of Goodyear's sales in FY2009.[37] In the recent years, Goodyear's sales have increasing become more and more dependent on its International operations. This is partly because Goodyear's operations in North America continuously have low or negative operating margins. In FY2009, for example, GT's "North America Tire" segment had consumer replacement volume decrease by 1.1 million units, or 2.3% due to the decline in consumer replacement volume is due in part to recessionary economic conditions in the U.S.[38] On the other hand, although in China, there are only 12 passenger cars per 1000 inhabitants compared 500 passenger cars per 1000 inhabitants in Western Europe, the number of car owners in China have been drastically increasing. These figures are consistent with other BRIC countries, which shows how since both Asia and Latin America have high growth potential, their development highly impacts Goodyear’s revenues.
Competition
Goodyear's top competitors are Michelin and Bridgestone. Goodyear is the third largest by market share behind Bridgestone and the leader Michelin. Both competitors are based overseas, Michelin in France and Bridgestone in Japan. Michelin is the leading producer in Europe and also is the leading producer in China. Bridgestone is the leading producer in Japan. Michellin, has a less favorable cost base than Goodyear but can charge higher prices due its superior technology. Through Bridgestone's combination of marketing and product mix it has been able to increase its sales dramatically in comparison to its competitors while charging higher prices.
Company Comparison in FY2009
Company Net Profit Margin Operating Margin EBITD Margin Return on Average Assets Employees
Goodyear (2.23%) (2.19%) 3.56% (2.46%) 74,700
Michelin 0.70% 3.04% 9.38% 0.63% 106,010
Bridgestone 0.24% 2.02% 8.98% 0.22% 137,135