Goodyear: strategic plan, several options on the table
This transformation plan - dubbed 'Goodyear Forward' - calls for portfolio optimization, margin improvement and debt reduction, with the stated aim of creating value for shareholders.
The program, set up by a committee drawn from the Board of Directors, aims to generate some two billion dollars in revenue through the reorganization of activities.
It also targets cost reductions of around $1 billion on an annualized basis by the end of 2025, which should enable it to double its operating margin to 10% by that time.
The American manufacturer also announced that its CEO Richard J. Kramer had expressed his desire to step down next year.
Goodyear says it has appointed a firm specializing in top-level executive recruitment to identify both internal and external candidates to succeed him.
The share price climbed more than 6% in pre-market trading following these announcements.
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