Sweet profits and achievements during an uncertain economy may have put a smile on Goodyear investor's faces today.
Goodyear Tire and Rubber Company Chairman and CEO Richard Kramer says he's pleased with the company's record-setting sales of $22.8 billion-dollars in 2011. Sales are up 21 percent from 2010.
The company held its shareholders annual meeting in Akron this morning where goals for the company moving forward were highlighted.
Press Release:
AKRON, Ohio, April 17, 2012 – In his address at The Goodyear Tire & Rubber Company’s Annual Shareholder Meeting today, Chairman and Chief Executive Officer Richard J. Kramer outlined the company’s Strategy Roadmap, highlighted its 2011 successes and expressed his confidence in the future.
Kramer said he is pleased with Goodyear’s 2011 performance, which set records in several areas. Among these achievements were:
• 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, and• Improved price/mix and branded share gains in targeted market segments.
“What is most gratifying,” Kramer said, “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, and• 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.” They are:
• Market-back innovation excellence,
• Targeting profitable market segments,
• Operational excellence,
• Enabling investments, and• 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.
Acknowledging that there remain challenges to be faced, Kramer said, “We have positive momentum and more confidence than ever that we will successfully execute our strategy, reach our destination and create sustainable economic value. We will be profitable through all economic cycles, generate positive cash flow and return to investment grade. That is our destination.”
Commenting on construction of the company’s new global headquarters campus in Akron, he said it represents “more than just a new place to work, it will serve as an environment for a new way to work.” Goodyear expects the new headquarters to be completed in April 2013.
