The Goodyear Tire & Rubber Company (NASDAQ:GT) announced on Wednesday the pending retirement of its CEO and chairman as well as a new plan to increase profitability.
Richard Kramer, who has work at Goodyear for 24 years, has informed the company's board of his plans to retire as chairman, CEO and president in 2024, after holding those positions for 14 years.
Goodyear also said it is exploring the sale of its chemical segment, Dunlop tire operations, and off-the-road equipment tire segment, which is expected to generate gross proceeds of more than $2 billion.
The company anticipates the cost reduction initiatives will drive a yearly, run-rate benefit of $1 billion by the end of 2025.
Goodyear added that with the benefits of cost reduction and top line actions, and net of the impact of expected asset sales and inflation, the company expects its segment operating margin to double from about 5% in 2023 to 10% by the fourth quarter of 2025.
Shares of Goodyear rose 2% to $13.96 in midday trading on Wednesday and have gained 37% year to date.
Contact Sean at sean@proactiveinvestors.com