Tyre sector in great shape. The results published by the major tyre manufacturers for the year 2013 are highly optimistic: for the second year in a row, four of the five largest manufacturers in the world reported operational margins in excess of 10%: Continental (17.1%), Bridgestone (13.2%), Pirelli (12.8%) and Michelin (11%), with a slight drop for Goodyear, down to 8%. In 2009, only Continental had a profit margin in double figures. Whilst the market is stagnating in the mature countries, there are other factors to explain the good state of health of the sector: the growth of emerging countries, where demand for tyres is rising, the price for raw materials (rubber), which is down, the rationalisation of costs by getting rid of capacity, notably in Europe. But most of all, it is the position of the manufacturers on the market for large tyres (more than 17 inches), which are in high demand and very profitable, which explains the good health of the sector. This strategic segment grew by 21% between 2010 and 2012, to 300 million units a year, and Michelin predicts that its sales will almost double between now and 2020. Large tyres are expected to account for nearly half of the tyre market between now and 2020, compared to 25% today. This is a highly profitable market for manufacturers as, according to estimations by Deutsche Bank, 17 inch tyres cost between €110 and €132 on average, which is 40% more than 16 inch tyres. (IL)