Executives from Akron, Ohio-based Goodyear Tire & Rubber Co. today will discuss the company's strategies "to capitalize on industry and economic trends to achieve record levels of profitability," the company said.
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 aiming for record segment operating income of $1.6 billion in 2013.
Over the next decade, Kramer said the company sees the industry being influenced by seven "mega trends" that "favor Goodyear and our well-established innovation capability."
"We have a clear view of our destination as a business and well-defined strategies for driving value going forward," Kramer said. "Our focus will be winning in the segments where the highest profits are available for Goodyear and for our customers."
Company Will Invest in Plant Modernization
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, according to Goodyear.
The investments will support a 3% to 5% annual increase in unit volume, focused on high-value-added tires in high-margin segments, according to the company.
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.
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