Goodyear targets 10-15% growth in operating income

ERJ staff report (RPN)

Rubber & Plastics News Report

New York — Goodyear said it is targeting 10 to 15 percent growth in operating income through 2016 while affirming its outlook for 2013 operating income of about $1.5 billion.

The tire maker made the announcements Friday morning during a conference call with investors.

The company also said its capital allocation plan includes the reinstatement of a quarterly cash dividend on its common stock and a $100 million share repurchase programme.

Goodyear has declared a quarterly dividend of 5 cents per share of common stock, payable on 1 Dec to shareholders of record. According to the company, the payout represents an annual rate of 20 cents per share. Goodyear last paid a common stock dividend in December 2002.

"Our capital allocation plan demonstrates Goodyear's commitment to creating value for shareholders while maintaining financial flexibility to execute our strategic plan, continuing to strengthen our balance sheet and investing for future growth," CEO Richard Kramer said in a statement.

As part of the share repurchase program, Goodyear will acquire up to $100 million of its common stock. The repurchases are intended to offset new shares issued under equity compensation programs, Goodyear said.

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Article from Rubber & Plastics News