Goodyear Tire & Rubber Co.'s board of directors has approved the elimination of the company's quarterly dividend.
The decision will save Goodyear $84 million a year, according to an official statement from the Akron, Ohio-based tiremaker.
Goodyear's previous dividend rate was 12 cents per share.
"The elimination of the dividend is an important step in a series of actions the company is taking to improve its financial flexibility in light of recent disappointing results and challenging economic conditions," says Goodyear CEO Bob Keegan.
Goodyear's stock closed at $5.17 a share yesterday, five cents more than its 52-week low.
