Falken reports Shirakawa tyre plant suspension after tsunami
Falken has released a statement from its finance and admin director T. Ikeuchi, reporting that its Shirakawa factory has “stopped daily manufacturing operations due to the immediate black out, and because the factory building and equipments installed have been found partly damaged. Ikeuchi also stated that the company is “investigating the extent of the damages”, intending to recommence production as soon as possible. In addition, Ikeuchi said that all “Sumitomo Rubber Industries group employees and their families have been confirmed uninjured”.
Continue ReadingTyreman moves offices
Provider of technology software solutions to the tyre and exhaust industry since 1985, Tyreman has announced the opening of its new, larger office in Hadleigh, Suffolk. The company stated that the move from its premises on Semer Business Park in Ipswich has come on the back of “another successful year of trading".
Continue ReadingPreliminary report: Pirelli 4Q improves on estimates
A preliminary report from analysts suggests that Pirelli’s fourth quarter financial figures have beaten consensus estimates in terms of earnings before interest and tax by 15 per cent, leading banks to predict an upgrade to the company’s stock value. Net debt is also lower than expected according to the report, while analysts called the Italian manufacturers message that its pricing will offset higher raw materials costs “very confident”.
Continue ReadingGiti Tire USA clarifies financial figures
Following the publication of Giti subsidiary Giti Tire Company’s full year 2010 figures, Tom McNamara, vice president of sales for Giti Tire USA, has brought clarification to what these mean in the context of wider business. According to McNamara, Giti Tire Corporation stated in its 2010 annual report that it had made timely price adjustments following the industry price movement in an effort to mitigate the increase in raw material prices and the effect of fluctuating exchange rates. Some published reports incorrectly attributed the decrease in net profit to not raising selling prices in 2010.
Continue ReadingDineen wins General 4×4 award
Dave Dineen, Micheldever/Southam’s 4x4 sales manager, was recently presented with a unique award by General Tire for exceptional sales achievement. Dineen who has headed up the MTS specialist 4x4 sales division based at Southam for over 10 years, received a handmade belt constructed from the tread of the General Grabber AT2 for exceptional sales achievement.
Continue ReadingNexen Tyre reports 1.08 trillion won sales, up 11.8%
Nexen Tire Corporation has reported sales of 1.08 trillion Korean Won (£595.5 million; 696.385 million euros; US$964 million), an 11.8 per cent increase compared with 2009. Hyun Bong Lee, vice chairman and CEO of Nexen said: “Nexen has made a great step towards its target of becoming one of the top 10 tyre manufacturers in the world by 2015.” Sales have almost tripled since 2004 and are forecast to triple again by then.
Continue ReadingCooper quarter operating profit down, despite record sales
Reporting financial results for the quarter ending 31 December, 2010, Cooper Tire & Rubber Co saw its operating profit diminish to $55 million, $5 million down on the same quarter in 2009, though it also achieved record net sales of $920 million, $147 million, or 19 per cent, up on 2009. Roy Armes, CEO, commented that while demand for the company’s products was strong and manufacturing facilities were run “efficiently”, raw materials prices and the available inventory had limited progress in terms of operating profit. Operating profit was $55 million, or 5.9 percent of net sales.
Continue ReadingPirelli chairman resigns from Libyan Investment Authority board
Pirelli chairman Marco Tronchetti Provera has resigned from his position on the advisory board of the Libyan Investment Authority, which is the eighth largest shareholder of the multinational financial institution UniCredit, according to a Reuters report. The decision to resign came “in the face of the tragic events that are hitting the Libyan people,” according to a Pirelli statement. Tronchetti Provera has been on the LIA’s investment committee since March 2009.
Continue ReadingAndy Dingley becomes Brigestone UK communications manager
Bridgestone has appointed Andy Dingley, previously Bridgestone UK’s advertising and promotions manager, as communications manager. Dingley will reportedly use his 16 years experience in the tyre industry to build the strategic communications campaigns, focusing on public relations, brand, corporate and crisis communications, online activity and consumer shows. The move brings all product groups together for the first time and follows a recent restructuring of the senior sales and marketing team at Bridgestone North Europe. Dingley will focus on boosting the company’s visibility in the UK whilst helping to promote the business’ success across the whole North region.
Continue ReadingGiti Tire Corporation 2010 earnings down 64 per cent
Giti Tire Corporation (a Giti Group Shanghai listed company) recorded a 64 per cent year-on-year drop in 2010 net profit attributable to shareholders to 54 million yuan. This was despite a 36 per cent year-on-year increase in revenue to 3.61 billion yuan, according to a company filing.
Continue ReadingGuizhou Tyre’s 670 million yuan rights issue
Guizhou Tyre reportedly planed to raise 670 million yuan (£62.924 million; 74.624 million euros; US$102 million) through a rights issue of three shares for every 10 shares held at 6.86 yuan per share. According to Shanghai Securities News, which cited a company filing, the subscription period was 11 - 17 January 2011. The company has not yet released any details of the results of the issue.
Continue ReadingSumitomo Rubber warns on earnings, to raise prices 7%
Sumitomo Rubber Industries announced full year 2010 results and issued a profit warning on 9 February, but analysts warned that while positive sales projections look conservative the firm may have underestimated raw material costs as well. During the last financial year, higher raw materials prices reportedly cut earnings by 30.6 billion yen year-on-year and yen appreciation had an adverse impact to the tune of 5.0 billion. While higher selling prices boosted profits by 8.9 billion yen and volume/composition is said to have given a 39.8 billion yen boost. Higher productivity also contributed to earnings.
Continue ReadingJP Morgan increases Goodyear 2012 EPS, drops 2011 figure
Analysts at JP Morgan have increased their estimates for Goodyear Tire & Rubber's 2012 earning per share (EPS) and reduced 2011’s figure – mainly due to the impact of raw material prices. To reflect the impact of higher natural rubber prices, JP Morgan lowered its 2011 earnings per share projection to $0.50. However, 2012 has been revised up to $2.25. The estimates assume global volume growth of 4 per cent in 2011 and 2012 and a $374 million negative price/mix against raw material costs spread out in 2011.
Continue ReadingMichelin sales up 20.8% to 17.9 billion euros, operating margin now 9.5%
Compagnie Generale des Etablissements Michelin has announced that the tyre major’s sales shot up 20.8 per cent in 2010, while operating income swelled to 1.695 billion euros, representing a 9.5 per cent operating margin. Net income totalled 1.049 billion euros. According to Michelin the growth was driven by a 13.4 per cent increase in sales volumes, led by the group’s global presence and the rebound in mature markets. However managing partner Michel Rollier warned investors “In light of our capital expenditure commitments and the increase in raw materials costs, free cash flow is expected to be temporarily negative in 2011.” Nevertheless, Michelin confirmed its objective of generating positive free cash flow over the entire 2011-2015 period. The manufacturer also sought to emphasise its “responsive pricing policy” in the face of rising raw materials costs; sustained productivity gains and cost discipline; not to mention “robust free cash flow.” At the same time the company proposed a dividend of 1.78 euros subject to approval.
Continue ReadingHankook net income 30% under consensus – analysts
Analysts chided Hankook Tire’s fourth quarter financials as “as expected…weak fourth quarter results.” In an investor’s note published during the week commencing 31 January, Deutsche Bank wrote that the figures were “in line with our expectations, but…30 per cent lower than consensus.” The underwhelming performance was put down to the continually rising natural rubber prices: “Tyre makers are generally guiding for rubber prices to remain strong over the next 6-12 months and average selling price hikes remain the only way to protect margins.”
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