The FINANCIAL — The Goodyear Tire & Rubber Company at an investor meeting here on September 15 will discuss, among other topics, industry trends, its financial performance targets and its capital allocation plan.
“The tire industry is healthy, growing and offers attractive opportunities to grow profitably,” said Chairman, Chief Executive Officer and President Richard J. Kramer. “Our strategy is built to take advantage of key industry drivers including the transition to increasingly complex, large-rim diameter tires and the growing influence of empowered consumers in all aspects of the tire buying process.”
Kramer added, “We believe the combination of Goodyear’s innovation and technology leadership, industry-leading products and strong global brand provide us with a competitive advantage to execute our strategy and deliver on our performance targets.”
Goodyear’s financial performance targets include:
$3 billion in annual segment operating income in 2020 and
Cumulative free cash flow of $4.3-$4.9 billion from 2017 to 2020.
Goodyear also updated its capital allocation plan that includes growth capital expenditures, restructuring, debt repayment and a shareholder return program of up to $4 billion. As part of that program, Goodyear’s Board of Directors has declared a quarterly dividend of 10 cents per share of common stock, a 43 percent increase. The dividend is payable December 1, 2016, to shareholders of record on November 1, 2016. The payout represents an annual rate of 40 cents per share. Future dividends will be subject to Board approval, according to Goodyear.
“Our capital allocation plan demonstrates Goodyear’s commitment to creating value by maintaining financial flexibility to execute our strategic plan, continuing to strengthen our balance sheet and investing for future growth while also providing significant direct returns to shareholders,” said Kramer.
Goodyear also reaffirmed its previously communicated 2016 financial targets.
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