Goodyear targeting record income by 2013

ERJ staff report (TB)

New York -- Goodyear is targeting record operating income of $1.6 billion in fiscal 2013, company executives are telling investment analysts yesterday in New York.

“Having momentum coming out of the deep economic recession, we are now positioned to confidently drive higher levels of performance across our businesses,” said Chairman and CEO Richard Kramer.

“We see the tyre industry being guided by seven 'mega trends' over the next five to 10 years,” he said. “We believe these trends favor Goodyear and our well-established innovation capability."

Mr. Kramer said Goodyear has a “clear view” of its business goals and “well-defined strategies for driving value….”

To support its goals, Goodyear is budgeting capital investments of $1.1 billion to $1.3 billion per year in 2012 and 2013, up slightly from that budgeted for 2011, with $500 million to $600 million each year for plant modernisations, expansions and new construction.

These investments will support a 3- to 5-percent annual increase in unit volume, focused on high-value-added tyres in high-margin segments.

With an eye on the bottom line, Goodyear said it expects its pension expenses to fall by $100 million a year by 2013 as it reduces its underfunded pension obligations by more than half to $1.2 billion by 2013.

The Akron-based tyre maker expects operating income of $450 million in its North American Tire (NAT) unit along with improvements in its international businesses. By comparison, NAT reported operating income of $18 million.

From Tire Business (A Crain publication)

Press release from Goodyear