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RMA: US replacement tire market is on the rebound

Finally, some good news for the tire industry. Members of the Rubber Manufacturer’s Association reported yesterday that demand for replacement tires grew 9.3% year-over-year in the US during December. These numbers signify signs of a rebound for the replacement tire market, which has been hard hit in the last year amid a far-reaching global recession.  Domestic tire manufacturers such as Cooper and Goodyear seem to have gained market share, as the overall market volume grew 6.1%. This is believed to be a result of the tire tariffs imposed on Chinese tire manufacturers by the Obama administration. As Chinese manufacturers lose ground due to the tariff, domestic manufacturers are stepping and in and filling the demand.

In light of this news, financial analysts at Deutsche Bank expect Goodyear and Cooper’s volumes to grow to 4% and 13%, instead of the current negative growth trends that both companies are currently experiencing.

In a further investor’s note published Jan. 13, Deutsche Bank described the North American fourth quarter 2009 market recovery as a “meaningful volume uptick.” Meanwhile, Europe is said to have experienced “strong sales of winter tires.” Tire trends in Asia are also said to be encouraging, with Goodyear “particularly exposed to Australia, which has experienced a strong recovery as rising commodity prices have boosted that economy.”

Filed under: Cooper Tires, Goodyear Tires, Rubber Manufacturers Association, Tire News, Tire Sales, , , , ,

Cooper Tire names new Chief Financial Officer

Cooper Tire and Rubber Company has named Brad Hughes as its new VP and CFO. Hughes was nominated for the position after former CFO Phil Weaver announced his retirement, effective at the end of this year, back in May. Weaver had been the CFO at Cooper for 10 years, and had been working for the company for 19 years.

Brad Hughes had previously worked as global product development controller for Ford. Prior to this position he worked as a finance director for Ford’s South American Operations in Brazil. He also served as director of European Business Strategy and Implementation in Germany and as the European Manufacturing Controller in Germany. Hughes’ extensive experience and impressive resume in the tire industry is complimented by his Masters in Business Administration, which he received from the University of Michigan Business School.

Chairman, President and CEO Roy Armes said, “Brad Hughes is a solid, seasoned financial executive with broad exposure in several financial disciplines and a wealth of international experience. He has been a consistent high performer in very demanding roles throughout his career. Brad’s global business development experience, coupled with his astute analytical abilities and financial insights, make him an excellent fit for Cooper as we expand the company’s global presence and work to enhance our already-strong financial position.”

For wholesale Cooper tires, contact Future Tire, a New York/Philadelphia based wholesale tire distributor.

Filed under: Cooper Tires, Tire News,

Cooper Tire reports promising Q3 results

While some tire manufacturers are feeling the heat of the recession, Cooper Tire seems to be doing something right. Yesterday they reported very promising results for the third quarter, namely an operating profit of $71 million dollars. This number is a $118 million improvement from the same period last year! Net sales increased by $9 million and net income grew by $102 million. Not too shabby for a manufacturer in one of the industries hardest hit by the economic downturn.

cooper

Cooper attributed its third quarter numbers to lower raw material costs, manufacturing improvements, and improved usage of capacity. The eventful quarter for Cooper included the deactivation of its plant in Albany, GA, which resulted in nearly $13 million worth of restructuring costs.

Roy Armes, CEO of Cooper Tire, gave some insight into the company’s recent successes: “The positive results during the quarter were the outcome of successfully executing on our plan in an environment where a positive price to raw material relationship existed. This resulted in extremely positive margin growth and an operating profit during the quarter of nearly 9 percent. Raw material prices have escalated in recent months, but we do not expect a return to the high levels of 2008. In this environment, our operating results will be significantly affected by our ability to hold or increase prices.”

Cooper Tire is a multi-national tire manufacturer that specializes in passenger car, light truck, and medium truck tires. For access to wholesale Cooper Tires, visit FutureTire.com. For more information about Cooper, visit their website at CooperTire.com.

Filed under: Cooper Tires, Tire News, Uncategorized,