For the annual Top 75 ranking, Tire Business rates tire makers on their revenue from the sale of tires they have manufactured in order to achieve a more equitable "apples-to-apples" comparison.
Items such as third-party sales of raw materials — steel cord, synthetic rubber or carbon black for example — as well as estimates for non-tire items such as auto-service-related revenue at company-owned retail stores on non-tire rubber and/or plastics goods, are excluded.
Bridgestone, Michelin, Goodyear and Continental, for example, report hundreds of millions or even billions of dollars in revenue from their respective captive retail networks, which generate measurable shares of their revenue from automotive-service-related activities and sales of tire brands other than their own.
Other takeaways from the report:
- After sales revenue by the Top 75 global tire makers in 2020 dropped by more than 8% from 2019, sales by those same companies rebounded last year to the tune of nearly 13% more than 2020 and more than 6% more than the total from 2019.
- The average operating income/sales revenue margin among 25 leading tire makers last year was 9.4%, up nearly two points versus fiscal 2020 and back nearly on par with 2019.
- Two of the 25 companies tracked for this report reported operating losses last year — Kumho Tire Co. Inc. and Nankang Rubber — but that was more than offset by all the others that reported improved income for the year