Goodyear Tire & Rubber Co. outlined its growth plans and confirmed its 2016 financial targets in a statement released ahead of an investor meeting set for Sept. 15, 2016.
“The tire industry is healthy, growing and offers attractive opportunities to grow profitably,” said Chairman, Chief Executive Officer and President Richard 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.”
Executives will share industry trends and Goodyear’s financial performance targets and capital allocation plan with investors.
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% increase. The dividend is payable Dec. 1, 2016, to shareholders of record on Nov. 1, 2016. The payout represents an annual rate of 40 cents per share. Future dividends will be subject to board approval.
Goodyear also reaffirmed its previously communicated 2016 financial targets.
Investors, members of the media and other interested persons can access the video webcast on the website or the audio via telephone by calling either (800) 895-0198 or (785) 424-1053 before 8:55 a.m. and providing the Conference ID “Goodyear.”
An audio replay will be available by calling (800) 723-8184 or (402) 220-2668. A video replay will remain available on the website.