RMA members reported that replacement tire demand in the U.S. grew 9.3% year-on-year in December 2009, from a drop of 16% the year before.
Financial analysts pointed out that the overall market volume grew 6.1%, implying that domestic tire manufacturers (namely Cooper Tire and Goodyear) continued to experience market share gains. This is believed to be a result of last year’s Chinese-made tire tariffs as Chinese produced tires reportedly occupied 16.6% of the US market in 2008.
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.
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.” 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.” (Tyres & Accessories)
