Analysts predict tough road for Goodyear, Cooper

ERJ staff report (DS)

Johannesburg, South Africa -- South African stock analysts StockCall has predicted tough times ahead for US-based tyre makers. The company said it has completed analytical research on Cooper Tire & Rubber Co. (NYSE: CTB) and Goodyear Tire & Rubber Co. (NYSE: GT).

In a press release, StockCall said, "Recession fears, pension costs and raw material pricing are weighing on revenues of tyre manufacturers. Several companies have posted impressive second quarter results, but maintaining that momentum may be difficult for them in the coming months."

The company continued, "Rising pension costs for car and parts manufacturers could dent revenues, as interest rates and asset growth remain relatively low. Goodyear Tire and Rubber Co. is among companies that could be adversely affected by rising pension costs."

On Cooper, the analysts said, "Cooper Tire and Rubber Co., on the other hand, was also able to grow sales in the second quarter, but higher raw materials costs adversely affected profits. Despite growing year over year sales 14.7 percent to $922.2 million, operating profit fell by $10 million to $24 million."

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Press release from StockCall