"The U.S. dollar has strengthened about 10% this year vs. many foreign currencies and that should make imports somewhat less expensive," said Saul Ludwig in the latest installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"That, coupled with lower raw materials and global excess capacity, could lead to better deals for tire dealers throughout the year," he said.
"On the other hand, pressure on consumers’ pocketbooks may trump lower gasoline prices, so the outlook for tire demand is uncertain. But following a soft first quarter in 2009, I do expect volume to improve in the second quarter.”
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.
