The world's leading tire makers are wide-ranging in expectations when it comes to the remainder of 2016.
On the one hand, uncertainty about growth prospects in the second half of 2016 has prompted all four of Japan's tire makers to scale back on their earnings expectations for the fiscal year.
On the other, Michelin, Continental A.G., Goodyear and Cooper Tire & Rubber Co. have issued relatively bullish forecasts for their fiscal 2016 prospects.
Bridgestone Corp., Sumitomo Rubber Industries Ltd., Yokohama Tire Corp. and Toyo Tire & Rubber Co. Ltd. all have revised downward their projections for sales and earnings for fiscal 2016, citing the appreciating Japanese yen and lower tire sales during the first half.
In Bridgestone's case, the new forecasts are down double digits from the firm's earlier projections, which in turn already were lower than the company's fiscal 2015 performance.
For the year, Bridgestone is forecasting flat demand growth for replacement passenger tires in Japan, North America and Europe and 1 to 3 percent growth in aftermarket truck tire sales. In contrast, Bridgestone anticipates higher demand growth in Asia-Pacific, including China.
Bridgestone sees some volatile swings in original equipment demand for truck/bus tires, ranging from an 11 percent gain in Asia-Pacific to an 18 percent drop in North America.