Analysts praise Nokia’s ‘very strong’ fourth quarter, predict 30% capacity increase
Financial analysts lauded Nokian’s “very strong” fourth quarter results, with Morgan Stanley predicting the news will raise the share price, while Deutsche Bank increased its price target from 37 to 38 euros. Strong demand is also expected to lead to a significant increase in unit output during 2011. The analysts concurred that Nokian’s pre-released sales and operating income headline figures were in line with the actual results – making the focus on the company’s net debt and continuing outlook. And these, in Morgan Stanley analyst Edoardo Spina’s words are both “great news.” Net debt totalled only 1 million euros, implying cash generation of 383 million euros, according to the analysts.
Continue ReadingContinental performance ‘entirely attributable to tyre operations’
Continental AG’s adjusted EBIT is reportedly 15 per cent (100 million euros) above estimates produced by Deutsche Bank. With net debt below 6.5 billion euros, impressed analysts commented that “these better results are entirely attributable to the tyre operations.” The tyre division contributes 28 per cent of the group’s sales and 42 per cent of adjusted EBIT, which reported a higher result despite the significant raw materials headwind.
Continue ReadingYokohama led Japanese domestic tyre price increases – analysts
Financial analysts from Deutsche Bank commented that Yokohama’s recently reported third quarter operating profit margin declined 2 percentage points year-on-year to 11.9 per cent because “price hikes offset only 2.7 billion yen of the 7.8 billion yen of impact to profits from rising natural rubber and other raw materials prices.” They also observed that the company did not alter its guidance due to “uncertainty regarding trends in raw materials prices and foreign exchange rates.” Instead Yokohama, as Toyo subsequently did, announced plans to hike the price of its replacement tyres in the domestic market.
Continue ReadingToyo to raise passenger car and light truck tyre prices in Japan
From 1 April Toyo Tire & Rubber Co. Ltd will increase the price of tyres for passenger cars and light trucks sold in the Japanese domestic replacement market by an average of 7 per cent. Despite the fact the price hike takes effect on April fool’s day, the increase is not joke and applies to both Toyo’s summer and winter tyres. In fact the cost of some size of light truck tyres will rise sooner, with their Japanese domestic market price increase scheduled to take effect on 1 March 2011.
Continue ReadingGoodyear to announce fourth quarter 2010 financial results
The Goodyear Tire & Rubber Company has announced that it will report fourth quarter 2010 financial results before markets open on Thursday, 10 February, to be followed by an investor conference call at 10:30. Participating will be Richard J Kramer, chairman and chief executive officer, and Darren R Wells, executive vice president and chief financial officer. The company will post its financial information around 45 minutes before the start of the call on its investor relations website. A taped replay will be available later that day by calling (706) 645-9291. The replay will also remain available on the website.
Continue ReadingHankook increases Group profits with record high sales
Hankook Tire made 585.8 billion Korean won (383.3 million euro) in financial year 2010 operating profit, the company has announced. Helping Hankook achieve these figures was a record-breaking global sales total of 5.4 trillion won (3.5 billion euro), which fulfilled its aggressive global sales target to exceed 5.1 trillion won and recording an 11.5 per cent year-on-year increase. The company’s 2010 operating profit represented a 6.7 per cent increase. Hankook also said it sold more tyres than ever before to the European markets produced at its new European plant in Hungary.
Continue ReadingHankook Asia bumps net profit 21.1%
Hankook Tire's Asian division has announced improved 2010 earnings year-on-year with its net profit reaching 424.8 billion won ($381 million) last year, up 21.1 per cent from 350.8 billion won a year earlier. The increase has come on the back of “brisk sales in both domestic and overseas markets”. Sales jumped 19.3 per cent to 3.35 trillion won, and operating profit rose 5.5 per cent to 367.5 billion won.
Continue ReadingMichelin launches Ladoux Technology Center upgrade
Michelin has launched a major upgrade of its global research and development centre in Ladoux, near Clermont-Ferrand. The French tyre giant said the top-to-bottom upgrade is designed to “strengthen its innovation capabilities and shorten new tyre time-to-market.” 3,300 people are employed at the centre, which will be built by 2017. It will consolidate all Michelin R&D teams and laboratories on the same site, a move Michelin says will enable the introduction of new, faster and more efficient work processes. The entire project represents an investment of more than €100 million, Michelin says.
Continue ReadingTrelleborg moves North American office
Trelleborg Wheel Systems Americas Inc has moved its North American corporate offices in Ohio about 25 miles (40 km) to Fairlawn from Hartville. “We are very pleased with our new location for the business’s industrial and agricultural tyre divisions,” says Ydo Doornbos, managing director. “The city of Fairlawn has been very welcoming.” The Hartville location will remain as a satellite distribution centre. The main Ohio distribution centre is located in Akron, Ohio.
Continue ReadingNexen Setting Up European Technology Centre
Korean tyre manufacturer Nexen is in the process of establishing a European Technical Centre in Frankfurt/Höchst, Germany. The company says that the Centre underscores its efforts to establish itself further on the European market. Two experienced tyre specialists and developers have been involved with the interface between Europe and Korea since the beginning of the year – engineer Hee-Jong Lee and Dr. Hendrik Stevens.
Continue ReadingJK Tyre Q3 Net Profit Down Three-Quarters
India’s JK Tyre has posted net profits for its third quarter ending 31 December, 2010 of 90.14 million rupees, a year-on-year reduction of 74.93 per cent on the 360.46 million rupees posted in the same quarter at the end of 2009. “It was a very challenging quarter as the prices of natural rubber have increased 100 per cent, attaining unprecedented levels. Other raw materials have also registered a sharp increase of nearly 40 per cent,” stated JK Tyre & Industries vice chairman & managing director Raghupati Singhania.
Continue ReadingCGS Tires Changes Name to Mitas Tires North America
Alongside its decision to build a tyre plant in Charles City, Iowa, CGS Tires US Inc., the US subsidiary of Czech-based CGS Tyres, has changed its corporate name to Mitas Tires North America Inc, reports Tire Review. When the new plant is ready, the renamed company will relocate its US headquarters from Charlotte, North Carolina, to Charles City, Iowa.
Continue ReadingNankang Reports “Record Sales” in 2010
Nankang Rubber Tire representatives have reported an increase in sales of 28.7 per cent in 2010, making it “a record year” for the company. Despite the appreciation of the Taiwan new dollar’s exchange rate, Nankang says it achieved a 28.7 pr cent increase in operating income year-on-year, having reached figures of 13,618,253 thousand Taiwan dollars (£468.9 million) in comparison with 10,581,829 thousand Taiwan dollars (£364.7 million) in 2009.
Continue ReadingCooper to Announce FY2010 Results 25 February
Cooper Tire & Rubber Company says it will announce its fourth-quarter/year-end 2010 financial results before the market opens on Friday, 25 February. A conference call will be held with company management to discuss the results beginning at 11:00 Eastern Standard Time on 25 February. Individuals can access a webcast of the conference call at the investor relations webpage. Replays of the call will be available until Friday, 4 March.
Continue ReadingPirelli 2010’s ‘Most Recommended’ Tyre Brand
Data from tyre market research specialists Encircle Marketing shows that Pirelli was the most recommended brand in 2010. The analysis by Encircle Marketing, which continuously monitors brand recommendations found that Pirelli came top with eight per cent of all recommendations, up by almost half a point on its 2009 performance.
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