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Article: Tire makers cut capital spending to $2.4 billion.(News)
- Article from:
- Tire Business
- Article date:
- August 31, 2009
- Author:
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Byline: Bruce Davis
In line with the slumping global economy, tire makers worldwide have reined in their capital spending since last August, committing only $2.4 billion in the past 12 months to capital improvements, a fourth of the $9.6 billion budgeted in 2007-08.
The biggest spender is Group Michelin, which has committed nearly $700 million in the past year to capital expenditures, although a significant chunk of this is tied to restructuring and at least two plant closings. At the same time, though, Michelin has nearly halved its capital spending budget for fiscal 2009 to about $1 billion as it focuses on cash flow.
If myriad media reports ...