Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers G > Headlines for Goodyear Tire & Rubber Co. > News item |
Goodyear Tire outlines capital allocation plans for $3.6 billion to $3.8 billion over next two years
By Lisa Kerner
Charlotte, N.C., Jan. 13 – Goodyear Tire & Rubber Co. plans to allocate between $3.6 billion and $3.8 billion among “four buckets” between 2014 and 2016, according to executive vice president and chief financial officer Laura K. Thompson.
These buckets include dividends and share repurchases of $600 million to $900 million, growth capital expenditures of $1.5 billion, debt reductions and pensions of between $800 million and $900 million and restructuring costs of about $600 million.
Goodyear is also planning to maintain between $4 billion and $4.6 billion for interest, taxes, sustaining capex and working capital, according to the company’s presentation on Tuesday at the 2015 Deutsche Bank Global Auto Industry Conference in Detroit.
Thompson said Goodyear is working to get to an investment-grade balance sheet by the end of 2016 to improve its global access to capital.
The goal, said Thompson, is “to not go beyond that; we are not aiming to be a debt-free company in any way.”
Shareholder returns
Thompson also reiterated Goodyear’s commitment to shareholder returns.
The Akron, Ohio-based tire company authorized a $450 million share repurchase program through 2016 and completed $150 million of share repurchases in the fourth quarter.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.