Tire cos. get a boost from drop in oil prices

By Associated Press
September 2, 2008 | Comments (0)

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Shares of tire makers Goodyear Tire & Rubber Co. and Cooper Tire & Rubber Co. both posted big gains Tuesday after news that Hurricane Gustav had largely spared the Gulf Coast and its oil facilities sent the price of crude down.

Light, sweet crude fell $5.75 to settle at $109.71 a barrel on the New York Mercantile Exchange.

Like other automotive-related stocks, shares of tire companies have been hurt this year by a drop in demand for new vehicles and rising raw material costs. Tire companies are especially sensitive to fluctuations in oil prices because of the substantial amount of oil used to produce them.

In afternoon trading, Goodyear shares advanced 83 cents, or 4.2 percent, to $20.44 after rising to $21.62 earlier in the day. Goodyear shares have traded between $15.56 and $31.36 over the past 52 weeks.

Meanwhile, Cooper shares rose 71 cents, or 7.4 percent, to $10.27 after reaching $11.25 in morning trading. Over the past year, Cooper shares have traded between $7.05 and $26.02.

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