World tire companies are beginning to recover

According to overseas media reports, after experiencing a severe economic crisis in 2009, the global tire industry has picked up.

The data released by Japan’s Bridgestone not long ago showed that in the first half of 2010, Bridgestone’s tire net sales amounted to 44.5 billion yen, while in the same period in 2009, Bridgestone’s loss reached 39.3 billion yen. The financial report shows that the French company Michelin’s net profit exceeded expectations for 504 million euros in the first half of the year, and its operating profit increased to 9.8%, compared with only 4% in 2009. Although Goodyear’s 6-month revenue declined by 14%, its operations have been reduced by a factor of 30 on the basis of a significant loss in 2009; Goodyear’s second-quarter profitability has achieved a net profit of US$ 28 million. Rely on the rebound in the North American market. The Italian Pirelli Group was affected by the financial division of its subsidiaries, but realized an increase in net profit, and operating income increased by 2/3.

The report said that the above-mentioned financial improvement of each group mainly comes from sales. According to Michelin statistics, in the first half of the year, the market for tires for coaches has grown by 40% globally, and the replacement tire market has increased by 11%. As a result, Bridgestone’s revenue increased by 15% in the first half of the year, with its major markets being Japan, the United States, and Europe, followed by strong demand for oversized tires for mining and construction machinery. Michelin's business volume increased by 17%, Goodyear increased by 18%, and Pirelli increased by 20%. It is expected that the tire market will emerge from the downturn this year, and Bridgestone expects annual net profit to reach 91.1 billion yen. Michelin expressed optimism about the prospects and said that even if raw materials rose, they were not worried and could be compensated through prices.