Activity in July greatly affects stock prices
July was an active month for tire manufacturers, with tire recalls, major expansion plans and second-quarter results greatly affecting tire stock prices.
Taking the exchange rate between the euro and the dollar into account, overseas stocks suffered. Domestic stock prices, on the other hand, trended upward.
Pirelli SpA's stock experienced the largest decrease in price, dropping 24% from June 29 to July 31. However, much of that drop followed the company's purchase of controlling interest in Telecom Italia on July 30.
Bridgestone Corp.'s stock also dropped significantly -- 20% in the last month. During that time, the National Highway Traffic Safety Administration has asked Bridgestone's North American subsidiary, Bridgestone/Firestone Inc., to recall more tires. Ford Motor Co. is in the process of recalling some 13 million Firestone Wilderness AT tires.
The stock prices of Continental AG (down 5%) and Groupe Michelin (down 4%) also suffered.
In the United States, Cooper Tire & Rubber Co. experienced a 14% increase in its stock price in July, from $14.20 to $16.22. Goodyear Tire & Rubber Co.'s stock increased its share value by 2%.