Yokohama Releases CSR Report in English
The English language version of Yokohama Rubber’s CSR Report 2009 has gone online. A visit to the company’s website (http://www.yrc-pressroom.jp/env_en) will yield the annual document in PDF format. The company has also added a site report summarising CRS activities at each of its domestic and overseas production sites and affiliates.
Continue ReadingTitan's Third Quarter Results: Net Loss of $11.1 million
Titan International of Quincy, Illinois posted a net loss of $11.1 million for the period, compared to a net gain of $10.3 million for the same period last year, reports Tire Review. Driving down the profits was a sharp sales drop: $141.5 million for the quarter against sales of $255.5 million for the same period in 2008. Year-to-date sales were $581.1 million, compared to $778.1 million in 2008, and net profits year-to-date were $1.8 million in 2009, compared to $31.7 million last year.
Continue ReadingContinental Achieves 3Q EBIT of 413.4 million euros
Continental AG’s Rubber Group led the way in total group pre-tax profits (EBIT) of 413.4 million euros in the third quarter of 2009, with EBIT for the first nine months of this financial year totalling 662.1 million euros. The impressive profits, made from group sales of 5.337 billion euros in the third quarter (third quarter 2008: 5.892 billion euros) are widely seen as opening the door for Continental’s previously discussed 1 billion euro capital increase/ refinancing negotiations – “to be concluded no later than end of 1st quarter of 2010.” However, it wasn’t all good news and special effects of around 1.36 billion, and in particular a goodwill impairment of 875.8 million in the Automotive Group cannot be ignored.
Continue ReadingGITI Draws on UK Experience For German Truck Tyre Business
In January 2009 GITI Tire Europe incorporated a new UK truck tyre subsidiary, a move taken to enable the company to better focus upon the specialist needs of this market segment. The independent company took over the truck tyre business from Romney International/Compass Group (who continue to distribute GITI’s passenger car range). GITI has now decided to adopt this British model in Germany, and as of October 26 the company has taken over distribution of truck tyres in the German market from Reifen Gundlach, who had served as exclusive importer since 1994.
Continue ReadingGoodyear Stock Plummets following CFO’s Operating Income Q4 Prediction
Shares in Goodyear Tire & Rubber Co experienced the sharpest fall in New York trading for 22 years following chief financial officer Darren Wells’ prediction that income in North America will decline between $75 million and $125 million compared to third quarter results in the period October-December 2009. The company therefore forecasts an operating loss in North America during the fourth quarter. Wells made the statement during a conference call with analysts today discussing the results of 2009’s third quarter.
Continue ReadingGoodyear Reports Improvement in Q3, but Decline Vs 2008 Continues
Goodyear Tire & Rubber Company’s third quarter 2009 financial report showed sales and income improvements in comparison with quarter two, but the results continue to reflect what the company calls “weak industry demand”. Accentuating the positive, Goodyear states that it “sees opportunities as markets recover”, an idea reflected in the company’s launch of 57 new products over the course of the first three quarters of 2009 (15 in quarter three), a figure that surpasses the full-year target. Additionally, Goodyear has improved its liquidity, made year-to-date savings totalling $540 million and reduced its inventories by more than $1 billion in the period, while producing a third quarter segment operating income of $275 million, a figure that shows improvement on 2008, with sales 11 per cent up from quarter two at $4.4 billion.
Continue ReadingApollo Tyres Sees Profit Hike in July-September, Predicts Big Things for 2010
After witnessing a substantial jump in profits from the quarter ending 30 September 2009, Indian tyre manufacturer Apollo has suggested that more is to come in 2010. The company told Indian business news sources that it will be aiming for 50 per cent higher revenues for its financial year (ending March 2010) thanks to the effect of its new-ish European subsidiary, Vredestein Banden, which the company acquired on 15 May.
Continue ReadingSchaeffler and IG Metall Form Joint Committee
Schaeffler Group and the IG Metall union agreed to form a joint committee which, according to the company, “represents the first joint step towards the agreed implementation of co-determination in the company. The joint committee consists of six representatives from each party and is intended for the exchange of information about issues related to the economic situation and further development of the Schaeffler Group. A representative of the Schaeffler Group will act as the chairman and an employee representative will be deputy chairman of the committee. The joint committee will hold four ordinary meetings per year.
Continue ReadingItalian Brokers Believe Pirelli to Separate Tyre Unit from Real Estate Business
A Reuters report suggests that Pirelli is preparing a full separation of its tyre business from its real estate concerns in order to boost the Group’s value in the wake of improving tyre financial results. The Milanese broker Equita is reported as saying, “We believe some recent moves at the corporate level are clear pointers that will lead to a separation of Pirelli & C Real Estate PECR.MI from the group to transform Pirelli & C from a holding company to a tyre maker.” While the move is unlikely to happen in the short-term (separations of this kind generally take up to a year, says Reuters), the concentration on its tyre business could be motivated by the fact that Pirelli trails the market caps of Michelin, of whose cap the report states Pirelli’s is about a quarter at 2 billion euros, and Continental, though it is active in similar markets and sectors.
Continue ReadingMyers Sees Losses in Third Quarter
(Tire Review) Rubber, plastics and metal manufacturer, Myers Industries, Inc. reported net sales from continuing operations for the third quarter, ending 30 September, were $165.4 million, a decrease of 17 per cent compared to $199.9 million in the third quarter of 2008. The company cited continued weak economic conditions for the loss. Myers reported a net loss of $5.3 million in the third quarter compared to net income of $1.3 million in the third quarter of 2008, both including results from discontinued operations, as well as special expenses of $5.8 million in 2009 and $2.6 million in 2008.
Continue ReadingDespite Recession Scars, Bosch Sees Itself Well Positioned for the Future
German automotive technology supplier Bosch admits the recession has left a clear mark on its results. For 2009, the Bosch Group expects sales to decrease by 15 per cent, to some 38 billion euros. In its automotive businesses, the decline in worldwide sales will be as much as 20 per cent at year-end. Yet following the deep recession, Bosch Automotive Group chairman Dr. Bernd Bohr sees clear signs that the automotive business’s situation has stabilised. Orders have begun to improve and during the past few months Bosch has acquired major new projects. This is expected to support the company’s growth in the coming years. However, Bohr cautioned “it could take us until 2012 to return to the pre-recession levels of 2007."
Continue ReadingBridgestone to End Australia, New Zealand Tyre Production
When Bridgestone Australia chairman and managing director Shawn Hara gave word in April that operations at the company’s Salisbury plant would cease between April 14 and 27, he reassured that Bridgestone is “committed to local tyre manufacturing and we are proud of providing quality Australian-made tyres to our customers.” He also stated no further closedowns were planned for 2009. Despite these soothing words, on October 23 Bridgestone Australia Ltd. announced the decision to close the plant near Adelaide, along with the company’s factory in Christchurch, New Zealand. When the closures take effect, tyre manufacture in Australasia, which commenced in 1903, will come to an end.
Continue ReadingCarlisle Posts Profit Against Shrinking Sales
(Tire Review) Carlisle Companies Inc. posted third quarter profit of $45 million against a sharp decline in sales. Net income for the diversified company, which produces and sells specialty tyres among its products, was still down versus the same period last year. Sales for the quarter fell 27 per cent to $604.6 million. Company officials said Carlisle expects the next two quarters to be “challenging” due to rising raw materials costs. At the same time, Carlisle expects total 2009 revenue to come in at $2.97 billion, down 25 per cent compared to fiscal 2008.
Continue ReadingThird Quarter a Charm for Hankook
(Tire Review) Hankook Tire posted a net profit for the third quarter of the year thanks to increased sales and decreased production costs. For the three months ending 30 September, Hankook posted a net profit of 182.95 billion won (£96 million), up from a net loss of 14.79 billion won a year earlier. Operating profit in the third quarter jumped to 155.94 billion won from 53.86 billion won, while sales rose 14 per cent to 762.09 billion won from 667.75 billion won. Operating profit margin also jumped to 20.5 per cent from 8.1 per cent a year earlier.
Continue ReadingApollo Tyres Sales Up 60%
Apollo Tyres Ltd’s second quarter 2009/10 results show the company achieved 20.46 billion rupees (£269.8 million; 296.8 million euros; $443 million) of consolidated revenue in the period, up 62 per cent over the same period last year. Operating profit totalled 2.9 billion rupees (£38.278 million; 42.151 million euros; US$ 62.872) more than tripling the 818.3 million rupees the company brought in the year before. Onkar S Kanwar, chairman, Apollo Tyres, commented: “The steady growth achieved by Apollo Tyres despite rising raw material prices reflects the true spirit of our most valuable asset, the employees. In the quarter under review, higher raw material costs were absorbed by the company in order to protect consumers’ interest. This was possible only because of our continued emphasis on managing costs and efficiencies internally, which began in the first quarter of the last financial year.”
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