Cooper confident about 2013
Financial analysts has spoken of Cooper’s confidence in its continuing business outlook following presentations to investors at a Detroit roadshow.
Explaining their renewed confidence, the analysts put this down to “notably improved” product mix, cost competitiveness and recent pricing activity. As far as the import question of how Cooper will fair post import tariff, the Deutsche Bank analysts highlighted that since the tariff was implemented, “the cost of producing tyres in China has increased faster than other regions (the cost gap was 30 per cent at the time of tariff implementation but has declined to a 10-15 per cent).
Cooper managers also reportedly cited significant underrepresentation in certain regions as an opportunity.
Internationally, the company also expects Chinese truck and bus industry volume to begin to reaccelerate in the second half of 2013 when the company should also begin to benefit from the ramping up of volume at their Serbian plant.