By Denna Bowman
Goodyear tyres is planning to build on its growth coming out of the global recession to accelerate its operating income to a record $1.6 billion in 2013.
Richard Kramer, Chairman and CEO of the US tyres manufacturer, told an investors conference today: “Having momentum coming out of the deep economic recession, we are now positioned to confidently drive higher levels of performance across our businesses.
“We see the tyre industry being guided by seven ‘MegaTrends’ over the next five to 10 years. We believe these trends favour Goodyear and our well-established innovation capability.”
He added: “We have a clear view of our destination as a business and well-defined strategies for driving value going forward. Our focus will be winning in the segments where the highest profits are available for Goodyear and for our customers.”
Moving forward, Goodyear is budgeting capital investments of $1.1 billion to $1.3 billion per year in 2012 and 2013, up slightly from that budgeted for 2011, with $500 million to $600 million each year for plant modernizations, expansions and new construction.
These investments will support a 3- to 5-percent annual increase in unit volume, focused on high-value-added tyres in high-margin segments.