By Oliver Hall
The US replacement tyres market showed signs of a positive bounce at the end of last year, according to a new report.
Sales of tyres grew 9.3 per cent year-on-year in December from a drop of 16 per cent in 2008, members of the Rubber Manufacturers Association (RMA) reported.
Financial analysts pointed out that the overall market volume grew 6.1%, implying that domestic tyre manufacturers (namely Cooper Tyre and Goodyear) continued to experience market share gains.
This is believed to be a result of last year’s Chinese-made tyre tariffs as Chinese produced tyres reportedly occupied 16.6% of the US market in 2008, according to a Tyres and Accessories magazine.
According to the online magazine report: “Deutsche Bank analysts were quick to interpret the data’s impact of Cooper and Goodyear’s financial results: “On an annual basis, 1% incremental North American volume [growth] would add $0.10 to Goodyear and $0.11 to Cooper’s results.”
The analysts currently expect Goodyear and Cooper’s volumes to grow 4% and 13%, compared with -4% and -22%, respectively.
Meanwhile, Europe is said to have experienced “strong sales of winter tires.” In addition, industry trends in Asia are said to have been encouraging, with Goodyear “particularly exposed to Australia, which has experienced a strong recovery as rising commodity prices have boosted that economy.”