Goodyear: product innovation key to competitive strength

ERJ staff report (RD)

Akron, Ohio - Goodyear Tire & Rubber Co. chairman Robert Keegan has said he “remains confident in Goodyear's ability to drive performance during challenging economic conditions and emerge in a position of competitive strength.” The comments came during the company's annual shareholders meeting held in Akron on 7 April 2009.

Keegan highlighted three areas that he believes will guide the company during the economic downturn, namely:

Top line - encompassing new product leadership, building core brand strength and leveraging Goodyear's industry-leading distribution network;

Lowering costs - aggressively aligning Goodyear's cost structure with today's lower industry volumes; and

Managing for cash - focusing on the strength of Goodyear's balance sheet and generating funds to reinvest in the business.

Goodyear also took the opportunity to highlight some of its accomplishments in 2008 that might have been overshadowed by the economic decline, for example, $19 500 million (Euro 14 770 million) total sales - about equal to 2007 results, an 8-percent increase in revenue per tyre, and record sales in Asia-Pacific, Latin America and Europe, Middle East & Africa businesses.

“During challenging economic times, new products, strong dealer support and innovative marketing programs will be the core revenue-generating strengths for Goodyear," Keegan said. The company also said it plans to launch more than 50 new products in 2009.

And separately, shareholders of the Goodyear Tire & Rubber Co. re-elected 11 members of its Board of Directors, the company announced 7 April.

Re-elected were:

James Boland, retired vice chairman, Cavaliers Operating Company, LLC;

James Firestone, executive vice president and president, corporate operations, Xerox Corporation;

Robert Keegan, chairman, chief executive officer and president, Goodyear;

W. Alan McCollough, retired chairman and chief executive officer, Circuit City Stores Inc.

Denise Morrison, senior vice president and president, North America Soup, Sauces and Beverages, Campbell Soup Company;

Rodney O'Neal, chief executive officer and president, Delphi Corporation;

Shirley Peterson, retired partner, Steptoe & Johnson LLP;

Stephanie Streeter, former chairman and chief executive officer, Banta Corporation, and interim chief executive officer, United States Olympic Committee;

G. Craig Sullivan, retired chairman and chief executive officer, The Clorox Company;

Thomas Weidemeyer, retired senior vice president and chief operating officer, United Parcel Service, Inc.; and

Michael Wessel, president, The Wessel Group Inc.

The company said that Steven Minter, former president and executive director, The Cleveland Foundation, has retired from the board and did not stand.

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Press release from Goodyear Tire & Rubber Co.

Press release (re-election) from Goodyear Tire & Rubber Co.