Keegan: Goodyear will set ´aggressive´ cost-cutting goals

Akron, Ohio - Goodyear is evaluating an "even more aggressive target" for its cost-cutting measures beyond the more than $1000 million in cuts expected by year-end 2008, Chairman and CEO Robert Keegan said at the tyre maker´s annual shareholders meeting.

In 2005, Akron-based Goodyear set a goal of cutting between $750 million and $1000 million in costs by 2008. Last year the firm raised that to more than $1000 million without giving a specific number.

"Given our rapid progress to date, we are re-evaluating that goal with a view toward establishing an even more aggressive target," Keegan said during the meeting in Akron.

Savings have been achieved in part by previously announced plans to close or end tyre production at five plants globally. Keegan said the firm has reduced global capacity by 21 million units, or more than 12 percent.

"This is an area where we will continue to take actions to assure we have capacity aligned with global demand," Keegan said.

Also at the meeting, shareholders re-elected 11 directors to one-year terms. The directors are: James Boland, John Breen, William Hudson Jr., Keegan, Steven Minter, Denise Morrison, Rodney O´Neal, Shirley Peterson, G. Craig Sullivan, Thomas Weidemeyer and Michael Wessel.

From Rubber & Plastics News (A Crain publication)