Goodyear expects to see slow growth in global tyre industry

12 February 2013 16:06  [Source: ICIS news]

HOUSTON (ICIS)--Goodyear expects to see long-term growth in the global tyre industry, but at a slower pace near-term than previously expected, the US-based tyre major said in an update on Tuesday.

Goodyear said that its 2013 full-year tyre unit volumes would “reflect a low single digit percentage growth rate”, compared with 2012.

Goodyear's 2012 full-year tyre unit volumes were 164m, down from 181m in 2011. Fourth-quarter 2012 tyre units were 40m, down by 7% year on year, mainly because of lower volumes in Europe.

The company also lowered its expectations for 2013 segment operating income from its previous target of $1.6bn (€1.2bn) to $1.4bn-$1.5bn in 2013.

The reduced expectation for 2013 reflects continued volume weakness and related production cuts in Europe, restructuring in France, as well as the recently announced devaluation of Venezuela’s currency, Goodyear said.

For the full year of 2013, Goodyear expects the North American consumer replacement tyre market to be flat to up by 2%, and consumer original equipment to be up by about 5%. Commercial replacement and original equipment volumes are expected to remain at about 2012 levels.

For the full year in Europe, the consumer replacement industry is expected to be flat to up by 2%, and consumer original equipment to be down by about 5%, Goodyear said. Commercial replacement demand is expected to increase by about 5%, and original equipment volumes are expected to be flat to up by 5%, it said. 

Goodyear confirmed plans to close a facility in Amiens, France, and to exit the farm tyre business in the Europe, Middle East and Africa regions.

The measures, when complete, would eliminate about 6m units of high-cost tyre capacity and result in about $75m of annual profit improvement, the company said.

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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