Goodyear Tire sees debt down $300 million during fiscal year 2011

By Aleesia Forni

Columbus, Ohio, Feb. 14 - Goodyear Tire & Rubber Co. saw a reduction in debt during 2011 to $2.4 billion at Dec. 31, compared to $2.7 billion at the same date last year.

The company ended the year with over $5.5 billion of cash and available credit, compared with $4.8 billion at the end of 2010.

"Given this improvement, we feel very comfortable with our liquidity position heading into this year despite higher required pension contributions," chief financial officer Darren Wells said during the company's fourth-quarter earnings conference call on Tuesday.

Goodyear Tire ended the year with no funded debt maturities prior to 2014 and no bond maturities until 2016.

The Akron, Ohio-based tire manufacturer projects working capital to be neither a source nor use a of its cash in 2012, and the company's outlook remains between $1.1 billion to $1.3 billion.

"We will continue to invest in key projects, and we're devoting a significant share of capital to increasing our HVA capabilities in North America, Latin America and Europe," Wells said.

"We continue to see strong return potential from these investments."

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