Goodyear Tire (GT) Updates on Growth Plan; Approves 43% Dividend Hike
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The Goodyear Tire & Rubber Company (Nasdaq: GT) at an investor meeting today will discuss, among other topics, industry trends, its financial performance targets and its capital allocation plan.
"The tire industry is healthy, growing and offers attractive opportunities to grow profitably," said Chairman, Chief Executive Officer and President Richard J. 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."
Kramer added, "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."
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 percent increase. The dividend is payable December 1, 2016, to shareholders of record on November 1, 2016. The payout represents an annual rate of 40 cents per share. Future dividends will be subject to Board approval.
"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," said Kramer.
Goodyear also reaffirmed its previously communicated 2016 financial targets.
The company will host a live video webcast of the investor meeting today. The meeting is scheduled to begin at 9 a.m. and is expected to conclude at 12 p.m. Prior to the commencement of the webcast, the company will post the financial and other related information that will be presented on its investor relations website: http://investor.goodyear.com.
Also participating in the meeting will be Executive Vice President and Chief Financial Officer Laura K. Thompson, along with the presidents of the company's strategic business units: Stephen McClellan, Americas; Jean-Claude Kihn, Europe, Middle East and Africa; and Christopher Delaney, Asia Pacific.
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.
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Create E-mail Alert Related CategoriesCorporate News, Dividend Hike, Dividends, Guidance, Hot Corp. News, Management Comments
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