Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • Technical paper: Varying Si-substituents for rubber silanes
      White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. Featured Content
July 29, 2016 12:00 AM

Analysis - Goodyear aims to cut path through Europe’s cheap-imports wave

Patrick Raleigh
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    London – The Europe, Middle East and Africa (EMEA) region is again happy hunting ground for Akron-based Goodyear - as it has been for the past year or so.

    The US tire maker's second quarter results show operating income up 38 percent to $148 million (€133 million) compared to a year ago – the third consecutive quarter of year-over-year earnings growth.

    The gains were driven by higher production and sales volumes throughout the region, as well as by on-going cost-saving initiatives.

    Volume was up more than 4 percent, with an 8 percent rise in OE unit sales and a 3 percent increase in the replacement market. The good news even extended to the truck tires sector, where volumes were up almost 4 percent in the quarter and to winter tire inventories.

    Indeed, Kramer described EMEA as a two-track market: strong growth for high-end products, in particular those sized 17-inch and above, but flat demand for those dimensioned 16-inch and below.

    "We see the market as still demanding excellent technology driven by the OEMs. We really love the car park that still sits in Europe there," said Kramer.

    On the other hand, he noted a continuing in-flow of low-end Asian tires into Europe, particularly via eastern Europe - partly fuelled by tariffs in other world regions.

    "When tariffs go up in one region, those tires typically move to somewhere else," said Kramer. "In the past, they went down to South America, as those economies slowed and currencies depreciated, tariffs are back in the US… now they are in eastern Europe.

    "So, as we fight off the low-cost tires coming into the East that actually has a negative impact on our mix in Europe. [This] hides some of the positive impacts we're getting on the 17-inch and above."

    Going forward, Goodyear will focus on new products, leveraging its brands, and further actions to reduce cost, its leader commenting: "We're only on the front-end of fixing our European business over the long-term."

    So while Kramer forecast "strong results in Europe" continuing into 2017, he also signalled “some significant cost actions there as we move ahead, as we look at our production over there.

    Goodyear's EMEA team, he concluded, are "very focused on cost, day-to-day cost, as well as structural cost to reduce the fixed cost to that business going forward."

    Comments by Richard Kramer sourced from Goodyear conference call transcript, supplied by Seeking Apha.

    RECOMMENDED FOR YOU
    Analysis: Rubber mixing plants of the future
    Analysis: Rubber mixing plants of the future
    Analysis: US probes dumping by ESBR suppliers
    Analysis: US probes dumping by ESBR suppliers
    Opinion: Tire labels stuck in a rut
    Opinion: Tire labels stuck in a rut
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 2021. NUERJ LTD. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac