Goodyear Tire & Rubber Co. had a successful 2012 and is on the path to improved profitability this year and beyond, the chairman and chief executive officer told shareholders at the tire company’s annual meeting.
For the first time since at least the 1930s, Goodyear’s annual shareholders meeting took place outside Akron – in this instance, the Hilton Akron/Fairlawn hotel in nearby Fairlawn. The former traditional meeting spot, Goodyear Hall, was unavailable as part of the redevelopment project spurred by the completion this year of Goodyear’s new nearby global headquarters.
“We remain confident of success in 2013 and beyond because of our products, our people and our continually improving success,” CEO Richard Kramer said in comments during the half-hour-long meeting.
As it turned out, the spacious Goodyear Hall theater wasn’t needed this year. About 50 people turned out at the Hilton’s ballroom.
Goodyear’s commitment to what it calls a strategy road map has turned the company around, Kramer said.
Goodyear had a profit of $183 million, or 75 cents per share, on revenue of nearly $21 billion in 2012. “It’s important to note that we achieved this performance in an environment of continued global economic uncertainty and soft industry demand,” Kramer said.
The North American Tire division delivered full-year operating income of $514 million, a full year ahead of a goal of $450 million, and after losing $305 million in 2009, he said. Latin America and Asia Pacific also performed well, he said.
Kramer said the company’s new global headquarters that is connected to its tech center represents an evolving and innovative Goodyear.
During the question-and-answer session with Kramer, shareholder Kevin Rollick of Munroe Falls criticized Goodyear’s board of directors for not using their own money to buy shares in the company. “If you believe in Goodyear, show it,” he said.
Rollick also said that Goodyear’s stock performance the past 15 years has been “abysmal” and that many Goodyear brand tires have not been highly rated by Consumer Reports.
Kramer said Goodyear stock makes up half of board member compensation. He also said while the company pays attention to Consumer Reports, it finds some of the magazine’s tire tests meaningful and others not meaningful.
“Certainly our tires are performing very well in the marketplace,” Kramer said.
Shareholders failed to approve a Goodyear-supported amendment to eliminate cumulative voting for directors and a related proposal to reduce the voting standard for certain transactions. Measures approved included the election of all 12 directors to one-year terms.
Jim Mackinnon can be reached at 330-996-3544.