Hankook Multistrada bid falls through
The scramble to purchase a controlling stake in Indonesia’s second largest tyre manufacturer Multistrada Arah Sarana PT continues, as Reuters reports that the company’s shareholders have rejected a bid from Hankook for a controlling stake. Yokohama and private equity investment firm TPG Capital are reported to be the other bidders, though a Hankook spokesperson told Reuters that “none of the bids satisfied” Multistrada’s shareholders.
Continue ReadingAnalysts note improved Schaeffler outlook, continuing risks
Responding to Schaeffler Group’s recently published second quarter results, including a margin of 15.3 per cent for the quarter, financial analysts have praised the “very respectable results”. However, writing in an investor’s not dated 2 September, Morgan Stanley also noted risked associated with the company’s outlook and pointed out that margins were down 150 basis points year-on-year and 220 basis points quarter-on-quarter due to “higher raw material costs and ongoing expansion costs.”
Continue ReadingSchaeffler Group financials: growth in 1H 2011
The Schaeffler Group says its first six months in 2011 have “set new records in sales and operating results”. The company has grown its net income to 641 million euros in the period, with EBIT rising 20 per cent to 883 million euros and margin at 16.4 per cent. The company expects sales to increase by “at least 10 per cent” and has an EBIT margin target of “more than 13 per cent” for the year. Schaeffler’s sales in the first six months rose by 18 per cent to approximately 5.4 billion euros.
Continue ReadingBridgestone Europe re-certificated to ISO 9001:2008
Bridgestone Europe’s sales companies and warehousing have been re-certificated to ISO 9001:2008. The certification, independently verified by Lloyd’s Register Quality Assurance, requires companies to meet specific quality management system requirements across all business areas.
Continue ReadingGovernment targeting Bosch, Continental, Schaeffler for UK manufacturing investment
The British government is attending the Frankfurt Motor Show with the intention of targeting automotive suppliers such as Bosch, Continental and Schaeffler for discussions on potential investment in UK manufacturing. According to a report published by The Telegraph on 29 August, the government has “drawn up a list of foreign manufacturers that it wants to attract to the UK in order to boost output and help rebalance the economy.” The article continues by explaining that Mark Prisk, minister for manufacturing, will attend the Frankfurt Motor Show (also known as IAA Car) later this month.
Continue ReadingEngineers convicted in Goodyear corporate espionage case
A US federal judge has sentenced two former Wyko engineers to four years probation and 150 hours of community service after they were convicted of stealing trade secrets from Goodyear Tire and Rubber Co. in a corporate espionage case that first surfaced in 2009.
Continue ReadingAnalysts raise Yokohama estimates
Financial analysts have raised their estimates for Yokohama Rubber after reviewing their raw material assumptions. Their rationale is that, “while not as smoothly as peers, Yokohama Rubber is passing costs on to customers, and despite uncertainties (downturn in US/Europe), we expect it to report 30 per cent growth in adjusted full year…earnings on lower raw material prices and full-year contributions from price hikes.”
Continue ReadingWhy Bridgestone believes its new European structure takes it closer to the market
In the final quarter of 2010 Bridgestone announced that it was reorganising its European operation into key “regions“. At the start of 2011, this plan entered its second phase with the establishment of the North Region (consisting of the UK, Denmark, Norway, Finland, Ireland and Sweden). As a direct result of this, there were a number of promotions for executives at the company’s UK headquarters. On 1 January 2011 John McNaught became North Region managing director with Sam Enya as the North Region deputy managing director and also sales administration director. At the same time John Folliss became North Region commercial sales and marketing director with Andy Lane taking the position of North Region consumer sales and marketing director. Six months into his new role, Tyres & Accessories met with Andy Lane and learnt details of how the company sees the UK and other North Region markets progressing or otherwise this year and how the new approach positions the company to deal with this.
Continue ReadingStarco enters Baltic, CIS JV with Tente
Starco has announced that its Eastern Group (SEG) and Tente have established a new joint company, Tente SIA, which will handle sales and support of Tente products in the Baltic States and the CIS region. Tente will be the majority shareholder of the company, which hopes to build on the existing sales and support structure SEG has established in the region since 2005, when the German parent company first sought the support of Starco in its endeavours to establish itself in the region.
Continue ReadingAnalysts cut Cooper price target, re-iterate “overweight rating”
The second quarter was tough, but look out for a rebound in the second half of 2011. That’s the view of Morgan Stanley analysts with reference to Cooper Tire’s dramatic recent share performance. Reducing the company’s price target from $30.00 to $27.00, the company re-iterated our overweight rating saying the tyre manufacturer shares offer “compelling value following [the] recent [stock] sell-off.”
Continue ReadingCheng Shin continues growth, stock rating upgraded
Financial analysts have upgraded their view of shares in the Maxxis tyre brand’s manufacturing parent company Cheng Shin Rubber. Describing it as “one of the most successful Taiwan stories in China”; Morgan Stanley gave Cheng Shin the “overweight” rating, raising its earnings per share projections by 1 per cent and 9 per cent for 2011 and 2012 respectively. At the same time the stock’s price target was raise from NT$68.33 to NT$78.3.
Continue ReadingJapanese tyre makers avoid share price carnage
Despite the fact that their homeland suffered the combined catastrophe of earthquake and tsunami earlier this year Japanese tyre makers faired surprisingly well at the stock exchange in August at a time when the share prices of virtually all the other tyre majors took a beating. (See “Bloodbath at the stock exchange”).
Continue ReadingMartin Blakey appointed Tech Europe vice president
Tech Europe has announced the appointment of Martin Blakey as vice president of sales and marketing for Europe. According to the company, this appointment has been made to ensure that customers receive “the highest levels of service during a period of sustained growth for the Tech and Pang brands of Tyre repair products in the European markets.”
Continue ReadingYokohama Australia gains ISO 14001
Yokohama Rubber Co., Ltd., has announced that Yokohama Tyre Australia Pty., Ltd. (YTA), its tyre sales company in Australia, obtained ISO 14001 certification on July 25, 2011. YTA began its efforts toward acquisition of certification in August 2010. Its practices were then reviewed by the Australian examination organization SAI Global Limited, and certified. YTA is the second of Yokohama Rubber's overseas tire sales companies to be accredited under ISO 14001, following Yokohama Tire Taiwan Co., Ltd.
Continue ReadingAnalysts: Cooper 2Q results a ‘big miss'
“We had expected the second quarter to be tough…for Cooper given the weak second industry shipment numbers and adverse mix, but we were surprised by how weak it actually was,” was the stark verdict of analysts in response to Cooper Tire & Rubber’s most recent financials. This is exemplified in the company’s profitability results.
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