"The 1H09 financial results of almost all tire 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," says Saul Ludwig in the September installment of the "Ludwig Report" in Modern Tire Dealer magazine. "Only Pirelli Tire showed a respectable profit.
"Looking to 2H09," he continues, "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."
Ludwig is a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in the latest issue of Modern Tire Dealer magazine.
