During an investor meeting last week, The Goodyear Tire & Rubber Co. discussed its financial performance targets and its capital allocation plan, sharing the company is targeting $3 billion in segment operating income in 2020.
“The tire industry is healthy, growing and offers attractive opportunities to grow profitably,” said Richard J. Kramer, Goodyear chairman, CEO and president. “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.”
“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,” he added.
Goodyear’s financial performance targets also include a cumulative free cash flow of $4.3-$4.9 billion from 2017 to 2020 and reaffirmed its 2016 financial targets.
Additionally, Goodyear updated its capital allocation plan that includes growth capital expenditures, restructuring, debt repayment and a shareholder return program of up to $4 billion.
“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,” Kramer said.