Goodyear Tire & Rubber Outlines Plans For Earnings Growth, Reinstates Dividend

(RTTNews) - Tire manufacturer Goodyear Tire & Rubber Co. (GT) announced Friday that, at an investor meeting today, it will discuss its strategies and goals for the next three years and its capital allocation plan.

The company said it reconfirmed its outlook for 2013 segment operating income of about $1.5 billion and is targeting annual segment operating income growth of 10 percent to 15 percent through 2016. In addition, it is targeting positive cash flow, excluding pension pre-funding, through 2016.

The company also announced its capital allocation plan that includes the reinstatement of a quarterly cash dividend on its common stock and a $100 million share repurchase program.

The company noted that its directors have declared a quarterly dividend of 5 cents per share of common stock. The dividend is payable December 1, 2013, to shareholders of record November 1, 2013. The payout represents an annual rate of 20 cents per share. Future dividends will be subject to Board approval.

The share repurchase program authorized by the company's directors, calls for Goodyear to acquire up to $100 million of its common stock. The repurchases are intended to offset new shares issued under equity compensation programs, the company said.