By Denna Bowman
Goodyear tyres highlighted its 2011 success and outlined its ‘strategy roadmap’ for the future at the annual shareholder meeting today.
Richard J. Kramer, the US tyres manufacturers chairman and chief executive, revealed he was pleased with the company’s 2011 performance which set records in several areas.
Its achievements included:
• Record sales of $22.8 billion, up 21 percent from 2010
• Record segment operating income, up almost 50 percent from 2010 and 10 percent higher than the company’s previous high
• Record sales in all four business units and significant earnings improvement in the North America and Europe, Middle East & Africa businesses
• Improved price/mix and branded share gains in targeted market segments
Kramer said: “What is most gratifying is that our record results across all global businesses were achieved in the midst of continued economic uncertainty around the world through successful execution of our strategy.
“Our Strategy Roadmap is the foundation for decisions on every aspect of the business, from marketing and product development to investment and team building.”
Within that framework, the company has three key strategies, which Kramer said are essential to its future. They are:
• Returning North American Tire to sustained profitability
• Winning in China,
• Continuing its traditional success in Europe, Middle East & Africa and Latin America.
Kramer said the path to delivering on these key strategies is formed by five key areas of execution, or as he calls them, the key “how to’s.”
“Our performance in these five areas served as the catalyst for our record results and continues to be our playbook going forward,” he continued.
• Market-back innovation excellence
• Targeting profitable market segments
• Operational excellence
• Enabling investments
• Top talents and teams.
“As we execute in these five areas, we are confident that we will create a stronger company, both competitively and financially in both the near term and over the long term,” Kramer said.