Goodyear Outlines Strategic Path

The Goodyear Tire & Rubber Company GT at an investor conference here today will discuss its strategies to capitalize on industry and economic trends to achieve record levels of profitability. Goodyear said it is targeting 2013 segment operating income in its North American Tire unit of $450 million and improved segment operating income in its international businesses. In total, Goodyear is targeting record segment operating income of $1.6 billion in 2013. Going forward, the company anticipates making capital investments of between $1.1 billion and $1.3 billion per year in 2012 and 2013, up slightly from an expected $1.1 billion to $1.2 billion in 2011. Between $500 million and $600 million each year will be focused on profitable growth opportunities through plant modernizations, expansions and new construction. These investments will support a 3 percent to 5 percent annual increase in unit volume, focused on high-value-added tires in high-margin segments. Goodyear expects to reduce its underfunded pension obligations to $1.2 billion -- or by more than half -- by 2013. It expects to make pension contributions of $550 million in 2012 and $525 million in 2013 in addition to contributions of approximately $275 million in 2011. As a result of these planned actions, the company's pension expense is expected to decrease by $100 million a year by 2013.