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.
â€œHaving momentum coming out of the deep economic recession, we are now positioned to confidently drive higher levels of performance across our businesses,â€ said Chairman and CEO Richard Kramer.
â€œWe see the tyre industry being guided by seven 'mega trends' over the next five to 10 years,â€ he said. â€œWe believe these trends favor Goodyear and our well-established innovation capability."
Mr. Kramer said Goodyear has a â€œclear viewâ€ of its business goals and â€œwell-defined strategies for driving valueâ€¦.â€
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