The head of Goodyear Tire & Rubber Co.’s major North American Tire division has left after 18 months on the job, with the company promoting a successor from within.
Stephen R. McClellan, 45, a Goodyear employee since 1988 and a University of Akron graduate, is the new North American Tire president, Goodyear announced Thursday.
North American Tire is Goodyear’s largest business unit.
Curt Andersson, who was hired for the job in February 2010, “plans to pursue other professional interests,” the Akron tire company said.
McClellan, who has been at Goodyear his entire professional career, is the head of North American Tire’s consumer tire business. He will still run that unit until a successor is named, Goodyear said.
McClellan brings strong leadership and a proven track record of delivering results, Richard J. Kramer, Goodyear’s chairman, president and chief executive officer, said in a statement.
“Steve’s career of more than 20 years at Goodyear has included progressively larger leadership positions within North American Tire,” Kramer said. “His success in running the North American consumer and commercial tire businesses and his strong relationships with customers make him a natural successor to the role.”
Industry analyst Saul Ludwig at Northcoast Research said in a short note to clients that he felt McClellan should have been named North American Tire president 18 months ago.
“Curt Andersson was a surprise pick as he had no tire, chemistry or consumer products experience,” Ludwig wrote. “Steve is a good pick, dealers like him and I think he will be an excellent [North American] head.”
McClellan’s management background in the consumer tire business includes finance, sales and distribution.
In 2001, he was named president of Wingfoot Commercial Tire Systems, Goodyear’s national network of commercial tire sales, retreading and service. He was promoted to vice president, Commercial Tire Systems, in September 2003.
McClellan has headed Goodyear’s North American consumer tire business since August 2008.
He is a Pittsburgh native and a 1987 UA graduate with a bachelor’s degree in accounting.
Kramer said North American Tire under Andersson showed continued progress toward sustainable profitability.
On July 28, Goodyear announced as part of its second-quarter earnings release that revenue at North American Tire rose 17.7 percent to $2.4 billion from slightly more than $2 billion a year ago. Operating income rose to $137 million from $16 million a year ago. Tire sales were down 6 percent from 16.6 million units a year ago to 15.7 million tires for the second quarter this year.
Goodyear’s goal is for North American Tire to reach $450 million in annual operating income in 2013.
“We appreciate [Andersson’s] efforts and thank him for his work at Goodyear,” Kramer said.
According to Goodyear’s last proxy statement, Andersson in 2010 received $3,550,493 in total compensation, including a salary of $459,375 and a $450,000 signing bonus. He was the only Goodyear senior executive to receive a bonus in 2010, according to the proxy.
Andersson succeeded Kramer on Feb. 16, 2010, as president of North American Tire after Kramer was promoted to chief executive officer.
Andersson came to Goodyear from Syracuse-based electrical product maker Cooper Crouse-Hinds, where he was president. His background also included being a senior vice president at the Timken Co.
Andersson’s hiring was announced by both Kramer and former Goodyear CEO and Chairman Bob Keegan, who praised him for his management abilities, track record and as someone who would be a great fit within the company.
Goodyear shares on Thursday fell $1.59, or 11.9 percent, to $11.75. Shares are down 0.8 percent since Jan. 1 and are up 11.4 percent from a year ago. A Goldman Sachs analyst on Thursday downgraded the stock from neutral to sell as part of an overall downgrade of the automobile industry.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com
