13.11.2006

Tyre manufacturers see red

Tyre companies Goodyear and Cooper both posted a third quarter loss despite soaring revenues.
Both companies faced high raw material prices while Goodyear’s operations were also hindered by an ongoing strike initiated by the United Steelworkers (USW).


Cooper's losses jumped to $25 million (£13.5 million) compared to $840,000 (£450,000) in the same quater last year even as net sales grew 28 percent to $716 million (£380 million). Cooper said its sales growth was driven by booming business in China and better pricing in North America and Europe.


Goodyear posted a loss of $48 million (£25 million) compared to a profit of $142 (£75.5 million) in the third quarter 2005 despite net sales growing 5 percent to a record $5.3 billion (£2.8 billion).

Higher raw material costs were partly to blame for both companies, although both had closed manufacturing plants - with high associated costs.

“This was a tough quarter with some of the operating challenges and continued dramatic raw material cost increases we faced,” said Byron Pond, Cooper’s interim CEO. “It was made even tougher with some of the unusual expenses we incurred.”