Strong US Demand Good For Cooper

US tyre demand came in strong during May, Deutsche Bank analysts have reported. As a result the major manufacturers are reported to have averaged a 3.6 per cent year-over-year increase. However, although demand appears to have recovered from the 3.8 per cent drop it suffered in April, the analysts are cautious about reading too much in the figures.

Having said that, the market watchers note that Cooper Tire is gearing up for a significant amount of new business at the end of the year. Raw material costs could also stabilise in the second quarter before beginning to drop in the third and fourth periods, they observe.

The analysts also remarked that tyre manufacturers are preparing for “one of the most aggressive rounds of price increases in recent memory,” including rises of up to 8 per cent starting this month. And this, of course, could lead to significant earnings improvement.