BOSTON, Sept. 15, 2016 /PRNewswire/ -- The Goodyear Tire & Rubber Company (NASDAQ: GT) at an investor meeting here today will discuss, among other topics, industry trends, its financial performance targets and its capital allocation plan.

"The tire industry is healthy, growing and offers attractive opportunities to grow profitably," said Chairman, Chief Executive Officer and President Richard J. Kramer. "Our strategy is built to take advantage of key industry drivers including the transition to increasingly complex, large-rim diameter tires and the growing influence of empowered consumers in all aspects of the tire buying process."

Kramer added, "We believe the combination of Goodyear's innovation and technology leadership, industry-leading products and strong global brand provide us with a competitive advantage to execute our strategy and deliver on our performance targets."

Goodyear's financial performance targets include:

• $3 billion in annual segment operating income in 2020 and
• Cumulative free cash flow of $4.3-$4.9 billion from 2017 to 2020.

Goodyear also updated its capital allocation plan that includes growth capital expenditures, restructuring, debt repayment and a shareholder return program of up to $4 billion. As part of that program, Goodyear's Board of Directors has declared a quarterly dividend of 10 cents per share of common stock, a 43 percent increase. The dividend is payable December 1, 2016, to shareholders of record on November 1, 2016. The payout represents an annual rate of 40 cents per share. Future dividends will be subject to Board approval.

"Our capital allocation plan demonstrates Goodyear's commitment to creating value by maintaining financial flexibility to execute our strategic plan, continuing to strengthen our balance sheet and investing for future growth while also providing significant direct returns to shareholders," said Kramer.

Goodyear also reaffirmed its previously communicated 2016 financial targets.

The company will host a live video webcast of the investor meeting today. The meeting is scheduled to begin at 9 a.m. and is expected to conclude at 12 p.m. Prior to the commencement of the webcast, the company will post the financial and other related information that will be presented on its investor relations website: http://investor.goodyear.com.

Also participating in the meeting will be Executive Vice President and Chief Financial Officer Laura K. Thompson, along with the presidents of the company's strategic business units: Stephen McClellan, Americas; Jean-Claude Kihn, Europe, Middle East and Africa; and Christopher Delaney, Asia Pacific.

Investors, members of the media and other interested persons can access the video webcast on the website or the audio via telephone by calling either (800) 895-0198 or (785) 424-1053 before 8:55 a.m. and providing the Conference ID "Goodyear." An audio replay will be available by calling (800) 723-8184 or (402) 220-2668. A video replay will remain available on the website.

Goodyear is one of the world's largest tire companies. It employs approximately 66,000 people and manufactures its products in 49 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. For more information about Goodyear or its products, go to www.goodyear.com/corporate.  GT-FN

Use of Forward-Looking Non-GAAP Financial Measures

This news release contains forward-looking non-GAAP financial measures, Total Segment Operating Income and Free Cash Flow, which are important financial measures for the company but are not financial measures defined by U.S. GAAP, and should not be construed as alternatives to corresponding financial measures presented in accordance with U.S. GAAP.

Total Segment Operating Income is the sum of the individual strategic business units' (SBU's) Segment Operating Income as determined in accordance with U.S. GAAP. Management believes that Total Segment Operating Income is useful because it represents the aggregate value of income created by the company's SBUs and excludes items not directly related to the SBUs for performance evaluation purposes. The most directly comparable U.S. GAAP financial measure to Total Segment Operating Income is Net Income.

Free Cash Flow is the company's Cash Flows from Operating Activities as determined in accordance with U.S. GAAP, less capital expenditures. Management believes that Free Cash Flow is useful because it represents the cash generating capability of the company's ongoing operations, after taking into consideration capital expenditures necessary to maintain its business and pursue growth opportunities. The most directly comparable U.S. GAAP financial measure to Free Cash Flow is Cash Flows from Operating Activities.

It should be noted that other companies may calculate similarly-titled non-GAAP financial measures differently and, as a result, the measures presented herein may not be comparable to such similarly-titled measures reported by other companies.

We are unable to present a quantitative reconciliation of our forward-looking non-GAAP financial measure, Total Segment Operating Income, to the most directly comparable U.S. GAAP financial measure, Net Income, because management cannot reliably predict all of the necessary components of Net Income without unreasonable effort. Net Income includes several significant items that are not included in Total Segment Operating Income, such as rationalization charges, other (income) and expense, pension curtailments and settlements and income taxes. The decisions and events that typically lead to the recognition of these and other similar non-GAAP adjustments, such as a decision to exit part of our business, acquisitions and dispositions, foreign currency exchange gains and losses, financing fees, actions taken to manage our pension liabilities and the recording or release of tax valuation allowances, are inherently unpredictable as to if or when they may occur. The inability to provide a reconciliation is due to that unpredictability and the related difficulty in assessing the potential financial impact of the non-GAAP adjustments. For the same reasons, we are unable to address the probable significance of the unavailable information, which could be material to our future financial results.

See the table below for a reconciliation of forward-looking cumulative Free Cash Flow to the most directly comparable U.S. GAAP financial measure, Cash Flows from Operating Activities.

Forward-Looking Statements

Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. There are a variety of factors, many of which are beyond our control, that affect our operations, performance, business strategy and results and could cause our actual results and experience to differ materially from the assumptions, expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to: our ability to implement successfully our strategic initiatives; actions and initiatives taken by both current and potential competitors; foreign currency translation and transaction risks; a labor strike, work stoppage or other similar event; deteriorating economic conditions or an inability to access capital markets; work stoppages, financial difficulties or supply disruptions at our suppliers or customers; the adequacy of our capital expenditures; increases in the prices paid for raw materials and energy; our failure to comply with a material covenant in our debt obligations; potential adverse consequences of litigation involving the company; as well as the effects of more general factors such as changes in general market, economic or political conditions or in legislation, regulation or public policy. Additional factors are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.

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SOURCE The Goodyear Tire & Rubber Company