Goodyear aims to cut debt, latest net debt remains at $3.5 billion

By Sahara Marte

New York, Aug. 13 - Goodyear Tire & Rubber Co. plans to minimize debt with expected higher earnings in the upcoming years, Darren Wells, executive vice president and chief financial officer, said at JP Morgan automotive conference.

The company expects higher earnings as demand for tires emerges, said Wells

"Consumers have done what they could to delay their own purchases," he added. "We start to get a consumer coming back, then there will be a significant push from dealers to start to increase their inventories."

Even though the exact period for demand to revive remains uncertain, the company will focus on minimizing debt, Wells said.

On June 30, the company reported $3.5 billion of net debt. Its net debt is equal to that of the same quarter last year despite its free cash flow of $569 million in the trailing 12 months.

Free cash flow was allocated towards pension obligations and restructuring costs for closing factories instead.

Goodyear is an Akron, Ohio-based tire company.

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