A mid-year report on the US tyres industry paints an optimistic picture for the remaining half of 2009.
After a disappointing start the prospects for the rest of the year look brighter, according to a survey by Modern Tyre Dealer.
The popular tyres industry magazine reported that there are signs of better results in the second half of 2009.
Saul Ludwig, managing director of KeyBank Capital Markets, also endorsed the view.
“The 1H09 financial results of almost all tyre manufacturers were very ugly as low volume, inefficient use of facilities, plant closings and other restructuring costs led to large losses for Goodyear, Michelin, Continental, Bridgestone, Cooper, Sumitomo, Kumho and others.
“Only Pirelli Tyre showed a respectable profit.
“Looking to 2H09,” he continued, “I expect better results as volume should improve and benefits from restructuring initiatives should help.
“It is encouraging to see data from the Federal Highway Administration that miles driven have increased for the last three months.”
Denna Bowman, Head Office