Tire industry under 'immense pressure,' says Armes
The tire industry is under "immense pressure" from several angles, says Cooper Tire & Rubber Co. CEO Roy Armes, including "volatile raw material costs, decreased global demand and more intense competition."
Cooper is focusing on improving its global cost structure "and we are beginning to see some of the benefits of these actions," he explains. "Unfortunately, much of what we have done is camouflaged by current market conditions.
"While the near-term outlook is pressured by macroeconomic events around the globe, we believe the actions we are taking are appropriate and will strengthen our business longer term."
The Findlay, Ohio-based tiremaker has been able to maintain "considerable cash reserves to support our plans and we maintain unused, existing credit facilities. We are positioning Cooper to emerge from the current recession a stronger competitor."