AKRON — New Goodyear CEO Mark Stewart will be looking into all aspects of operations for ways to achieve the company's Goodyear Forward plan. Stewart spoke during the company's fourth-quarter earnings call on Feb. 13.
"It's about streamlining the portfolio; for us to get to sustainable operational margins of 10%; getting our net-leverage to 2.5x by end of 2025; and having that sustainable free-cash flow that's going to increase our overall financial flexibility," Stewart said.
The wide-ranging transformation plan, announced Nov. 15, includes the divestiture of assets — like the Dunlop brand — to raise around $2 billion. The plan also calls for optimizing operations and streamlining the product portfolio to add around $1.3 billion in annual run-rate by year-end 2025.
Stewart was announced as the next CEO on Jan. 18, replacing Rich Kramer. Previously, he led North America operations for car maker Stellantis.
"I will bring a perspective from an automotive OEM — automotive supplier background — and the understanding of needing to lead through industry cyclicality and a clear focus on manufacturing, purchasing, engineering and logistics in order for us to achieve our financials," Stewart said.
"In addition to spending time meeting our customers, understanding our products and product placement, you can expect me focus heavily on Goodyear's manufacturing operations and distribution," he said.
Goodyear needs to maximize its market position by improving its cost structure, "as well as de-risking our balance sheet," he said.
"I'm confident Goodyear Forward will drive our company's next stage of profitable growth and success," Stewart said.
Stewart has been meeting with many customers, partners and employees and taking a deep dive into "functions and financials" to better understand the business.
"It really is about trying to keep that 'fresh-eye' look with a hard drive toward execution, and it's about speed of execution," he said. "It's about us delivering the Goodyear Forward plan."
