Pirelli Sells Broadband Business to ADB for 30 million euros
Pirelli & C has sold its broadband business to Advanced Digital Broadcast Holdings (ADB), a company quoted on the Swiss stock exchange for 30 million euros. Analysts received the move as confirmation that the company is wholly dedicated to its tyre business after the separation of its real estate arm earlier this year. The deal was announced on 21 October hours after the company confirmed that Prelios (the new name for Pirelli RE) would make it stock market debut on 25 October.
Continue ReadingKumho Edges Closer to Sale of Daewoo Engineering
Reports out of Seoul, South Korea say that the country’s financial regulators have approved a deal where Korea Development Bank will acquire controlling interest in Daewoo Engineering & Construction Co. from Kumho. The transaction for a nearly 40 per cent share of the construction firm was put at $2.93 billion. There was no word when the deal might close. (Tire Review)
Continue ReadingGoodyear to Announce 3Q 2010 Results
Goodyear states it will report its third quarter 2010 financial results before markets open on Thursday, 28 October. An investor conference call will follow the announcement at 10:00 (15:00 local time in the UK). Richard J Kramer, chairman and chief executive officer, and Darren R Wells, executive vice president and chief financial officer will participate in the call.
Continue ReadingLatest Pirelli Figures Show Tyre Market Was Strong in 3Q 2010
Pirelli’s latest “Tyre Market Watch” figures show that first half 2010 passenger car tyre volumes increased by approximately 20 per cent. Third quarter volumes are said to have remained strongly in the double digit growth range, but moving at roughly half the pace of the first half at +10 per cent. Truck tyre volumes were said to have been much stronger growing at +20 per cent and +25 per cent respectively.
Continue ReadingMartin West to Head New Sailun Europe Operation
Qingdao, China-based tyre manufacturer Sailun Co., Ltd., has appointed Martin West as managing director of its new Sailun Tyres (Europe) subsidiary. West previously held a number of senior roles with Goodyear, Lassa and most recently Infinity. Tyres & Accessories understands that the new European team, which will be based in the UK, currently consists of two people including the recent appointment of a back office manager that brings with him logistics experience at Goodyear Dunlop. According to a statement released by Sailun Europe, the recent moves follow the firm’s decision to begin “strategically focussing to further develop their presence in the European market.”
Continue ReadingPAI Partners Confirms it is considering £650 million Sale of Kwik-Fit
Talk of Kwik-Fit’s potential sale is nothing new – reports on tyrepress.com date speculation about another impending change of ownership since September 2008. However an unnamed source within the private equity house has reportedly told news organisations including the Financial Times and Reuters that PAI Partners, the French firm that currently owns the fast fit business, has appointed Credit Suisse and Morgan Stanley to analyse the possible sale of the company. Unconfirmed speculation suggests the trigger for this move was the receipt of two bids. The Financial Times suggests Bridgestone and Michelin as two potential bidders; the former as a rival bidder to PAI in 2005, the latter as the owner of rival fast-fitter ATS Euromaster.
Continue ReadingAnalysts: Michelin Rights Issue ‘Overly Prudent’
Michelin’s unexpected decision to announce a 1.2 billion euro rights issue at the Paris Motor Show on Tuesday 28 September may have knocked confidence in the company’s free cash flow generation amongst those observers that are concerned the company is being too cautious. But question marks also remain over what the company’s strategy is here. In the trading session following the announcement, Michelin shares dropped by more than 8.0 per cent according to the AFP News agency.
Continue ReadingNew Goodyear Dunlop Consumer Director Relaunches HiQ Kettering
Goodyear Dunlop’s new consumer director, Juergen Titz, has made his first public appearance in the role, launching the recently revamped Kettering branch of HiQ alongside UK and Ireland managing director George Rietbergen. Titz suggested that he would open his tenure as consumer director with new strategies to improve the success of the company’s brand range, notably utilising its connection to HiQ. Following his spell as retail director for the fast fit network, a period described by the franchise as extremely successful, Titz was present at the launch to support HiQ’s biggest franchisee Chris Kisby, MD of Easy Tyre & Autocentres.
Continue ReadingGoodyear Names New Latin America President
Goodyear has announced the appointment of Jaime Cohen Szulc as president of its Latin American region. Szulc will report directly to Goodyear's chairman-elect, chief executive officer and president Richard J. Kramer. Szulc succeeds Eduardo A. Fortunato, 57, who earlier this year announced his intention to retire at the end of 2010.
Continue ReadingBosch Automotive Aftermarket Appoints New Marketing Manager
Robert Bosch has appointed Abhijit Kallianpur as marketing manager for the Automotive Aftermarket division based in Denham. Abhijit has worked at Bosch in India for 15 years, working in Diesel Systems for much of that time. He joined the Automotive Aftermarket division in 2005 in Product Marketing, Germany. He moved back to Bosch India in 2007, taking over responsibilities for Product Marketing, as well as Purchasing and Quality Management of traded products.
Continue ReadingGoodyear Dunlop UK Appoints New Consumer Director, New HiQ Head to Follow
Goodyear Dunlop Tyres UK Limited has announced that Juergen Titz, currently director of the company’s HiQ retail network, has been appointed as director, Consumer and Motorcycle effective 1 October 2010. He will continue to report to George Rietbergen, managing director – UK and Ireland, and replaces Mark Davison, who is said to be moving to a new opportunity outside of the tyre industry. According to the company, further organisational announcements are due to be made at a later date, following this change. Tyres & Accessories understands that this means Goodyear Dunlop will shortly announce a new face for the HiQ top in response to Juergen Titz’ promotion. A spokesman told T&A that if no replacement is announced by the end of the month, the HiQ team will report directly George Rietbergen.
Continue ReadingGoodyear Calls for Redemption of $973 Million in Senior Notes
The Goodyear Tire & Rubber Company has called all of its outstanding senior notes due in 2011 and 2015 for redemption on 29 September, 2010. Goodyear intends to use net proceeds from its recent $1 billion issuance of 8.25 per cent senior notes due 2020 to fund these redemptions. The notes called for redemption are $388 million in principal amount of 7.857 per cent senior notes due on 15 August, 2011, $325 million in principal amount of 8.625 per cent senior notes due on 1 December, 2011, and $260 million in principal amount of 9 per cent senior notes due on 1 July, 2015.
Continue ReadingAnalysts Recommend Michelin Shares Over Goodyear
Analysts from investment bank Morgan Stanley have recommend investors buy shares in “Michelin against Goodyear” following its Alphawise surveys in Europe and the US. Based on current market performance and taking catalysts into the equation, the analysts estimate that “Michelin are 20 per cent above consensus, while for Goodyear we are 15 per cent below the street.” As a result Cooper Tire shares are described as the firm’s preferred stock in North America, while in Europe, the bankers recommended Michelin and Pirelli over Continental and Nokian.
Continue ReadingEric Le Corre Michelin Tyre PLC Managing Director
Eric Le Corre has been appointed as managing director for Michelin Tyre PLC following the retirement of Jim Rickard. He brings with him experience of Michelin’s operations in Europe and North America after 11 years with the Company, most recently as executive vice president and chief financial officer of Michelin North America, based in Greenville.
Continue ReadingMorgan Stanley Upgrades Michelin to Overweight, Doubles Target Price
Morgan Stanley analysts have upgraded Michelin shares to “overweight” and more than doubled their target price from 36 – 80 euros, commenting that the French tyre manufacturer “can surprise again.” This means analysts believe Michelin will beat consensus earning projections by more than a fifth: “We expect earnings to come in 20-25 per cent above consensus and cash generation to surprise significantly.” In an investors note published 25 August, Morgan Stanley’s Eduardo Spina explained that the upgrade is based on the fact that while Michelin stock trades at a roughly 25 per cent discount historically, “high earnings visibility” and pent-up demand contribute to making it attractive. As a result Spin predicts that earnings per share will ramp up to 10 euros by 2012, 25 per cent above the consensus of 8 euros by the same point.
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