TIF ‘Question Time’ Prefaces NTDA Dinner and TAFF Awards
The TIF’s first Seminar, including representatives from every section of the UK tyre industry, is taking place today, as Tyrepress.com posts this very story. Present on the panel, which will be taking questions from the floor, for the event will be:
Continue ReadingInnovation is Key to Future Prosperity – Goodyear’s Keegan
In remarks before the 28th Conference on Tire Science and Technology, Goodyear chairman and CEO Robert J. Keegan told attendees that a commitment to rapid innovation, aimed at addressing specific consumer needs, provides a significant “competitive advantage.” Furthermore, in today’s fast paced and economically challenging environment, such a commitment is “critical to a company’s very survival.”
Continue ReadingGoodyear USW Agreement "Reflects Common Competitiveness Goal": Kramer
(Tire Review) Following the ratification of Goodyear Tire & Rubber Co’s new, four-year master labour contract was ratified by members of the United Steelworkers union on 19 September, Rich Kramer, COO and president of Goodyear’s North American tyre unit suggested that, “This agreement reflects the commitment of Goodyear and the USW to continue to work together to achieve our common goal of world-class competitiveness.”
Continue ReadingGoodyear Going Shopping For TC Debica Shares
Goodyear Tire & Rubber has announced that its Luxembourg based subsidiary Goodyear S.A. will commence a cash tender offer to acquire any outstanding shares in Polish tyre company TC Debica for 59.52 PLN per share.
Continue ReadingLanxess Celebrates World Rubber Day
On September 12 the specialty chemical supplier Lanxess AG celebrated the 100th anniversary of synthetic rubber. The patent for the substance that would later significantly benefit the tyre world was granted exactly a century earlier to German chemist Fritz Hofmann, an employee to Lanxess predecessor company Elberfelder Farbenfabriken. To mark the occasion, Lanxess held a scientific colloquium in Cologne, Germany. More than 400 guests from 18 nations attended the event in order to learn more on the latest innovations in the field, the substance’s future possibilities and its market potential.
Continue ReadingChinese Tyre Tariff Leaves Cooper Better Off
While opinions are divided about the perceived fairness of the US government’s 35 per cent Chinese tyre import levy, the repercussions on the global market are undeniable. After the initial fluctuations in tyre manufacturers share prices (down for those producing mainly in the Far East; up for the North American tyre makers), the latest effect has been for banks to raise their earnings estimates for Cooper Tire & Rubber. The decision comes on the back of an investor’s note which suggests Cooper Tire, which has opposed the tax, appears to benefit from the system overall. Writing today (21 September) Deutsche Bank analysts said the US tariffs “have the potential to provide a significant net benefit to Cooper’s profitability over the intermediate term.” As a result the company raised its earnings estimates for the company to $1.61, $2.25 and $2.50 for 2009, 2010, and 2011, respectively, from $1.50, $1.40 and $1.48.
Continue ReadingAnalysts: Conti Doing Extremely Well in Tyre Operations
Continental AG’s tyre operations are “doing extremely well,” according to financial analysts. Writing in an investor’s note, Deutsche Bank analysts reported that the tyre business' 11 per cent (combined truck and passenger) operating margin in the first half of 2009 outperformed its rivals. “Even if the group enjoyed a small 45 million euro positive impact from raw material (compared with a small negative of 19 million euros at Pirelli and a bigger negative of 117 million euros at Michelin), they enjoyed a double digit operating profit margin despite a high 20 per cent volume decline,” the analysts wrote. Looking forward, Deutsche Bank predicted that the tyre operations will benefit from a positive raw material effect of (200 million euros) and from a volume recovery. The analysts pointed out that tyre operations produce 48 per cent of Continental AG’s group revenues.
Continue ReadingPirelli Tyre Due 100 million Raw Material Effect, Say Analysts
Pirelli Tire achieved a high 7.7 per cent operating profit margin in first half 2009. The figures come despite a negative raw material impact (-19 million euros) and despite a 16 per cent drop of volumes and a low capacity utilisation rate of 75 per cent. Pirelli Tyre CEO, Dr Francesco Gori made the remarks at a presentation given during the Frankfurt motor show. And the good news left analysts predicting the company’s financials should improve significantly in the coming quarters due to an estimated 100 million euros positive raw material effect; a recovery of volumes with capacity utilisation reaching 90-95 per cent; and “the full payback of restructuring measures.” Reporting on the presentations, Deutsche Bank analysts observed that Pirelli’s tyre business should benefit from the Brazilian government’s recent decision to impose import tariffs Chinese made tyres. The tariffs of US$0.75/kg are seen a significant plus for the company, in a market where the group already enjoys 30 per cent market share and “above average operating profit margin.” Chinese imports are said to represent approximately 10 per cent of the Brazilian market.
Continue ReadingConti CEO: Company Planning to Keep Tyre Unit
Continental’s new chief executive Elmar Degenhart recently told reporters that management board's preference is to “keep our portfolio the way it is today.” Newspapers and wire services have been quick re-report Degenhart’s remarks owing to the company’s previous position that it would consider the sales of the company’s Rubber Group, which includes the tyre business. Degenhart’s words (spoken in an interview with German automotive industry publication Automobilwoche) follow a string of non-verbal cues that suggest differences of opinions with the company and at major shareholder Schaeffler group. The latest, following Schaeffler repeated failure to include tyres and rubber its plans for a combined Conti/Schaeffler, was the fact that Continental AG apparently had nothing to say about tyres at this year’s Frankfurt Motor Show.
Continue ReadingMichelin Romania Considering £109 million Capital Injection
The Romanian Mediafax business publication is reporting that Michelin Romania’s majority shareholder, Michelin Group subsidiary Compagnie Financiere Michelin, is considering injecting 510 million Romanian lei (£109 million; 120 million euros) into the company by cash contribution. According to the report, the shareholders will discuss the issue on 16 October. Michelin Romania currently has a share capital of 439 million lei, which would mean the reported cash injection would more than double share capital. Michelin has been operating in Romania since 2001, and currently owns three factories, namely Victoria Floresti, which produces tyres for cars and vans, Silvania Zalau, which produces truck and industrial tyres, and RomSteel Cord, which produces metallic cord. Michelin Romania is 99.6 per cent owned by Compagnie Financiere Michelin.
Continue ReadingContinental Hires Credit Suisse for Capital Raising
Continental AG, Hanover, has hired Credit Suisse to act as an independent consultant for “the upcoming financing topics within the corporation.” The move is widely seen as preparation for a refinancing project that could be worth as much as 1.5 billion euros. According to a statement reporting the news, the key task of the advisor is to evaluate options for future sustainable financing and capital structures as well as to enable an optimal refinancing of the company. “For the upcoming tasks and meetings regarding various interrelated financing topics, we wanted to ensure that we also have the support of an independent consultant without prior or existing connections to any of the stakeholders of Continental,” said Continental CEO Dr. Elmar Degenhart on 17 September. “Our goal is to create a sound financial structure that continues to give us the flexibility to fully realize our strategic goals.”
Continue ReadingBridgestone Says Both Sides Met Contract Goals
Tire Review - While ratification votes are still weeks away, Bridgestone Americas said it is satisfied with its tentative four-year contract with the USW, and that the union met its bargaining goals, as well. The tentative deal covers USW workers at Bridgestone facilities in Akron, Des Moines, Iowa; LaVergne, Tennessee; and Russellville, Arkansas.
Continue ReadingBridgestone, Union Reach Deal
Fresh reports say that Bridgestone Americas and the United Steelworkers have reached a tentative agreement on a new four-year master contract. The deal was struck, said reports, early Wednesday in Louisville, Kentucky. Neither side made any comment regarding the proposed contract. At four years, the Bridgestone Americas master union deal would match Goodyear’s tentative – but still not ratified – union deal in length. Michelin North America’s new contract with the USW covers three years, as most tyre-maker-union contracts have in the past.
Continue ReadingReitzle to Lead Conti Amidst Board Appointments
Wolfgang Reitzle, CEO of industrial gas company Linde, was confirmed as the new chairman of Continental AG's supervisory board. "We are very pleased that we have been able to persuade Professor Reitzle to take on this challenging mandate," said Schaeffler owner Maria-Elisabeth Schaeffler in a statement. Reitzle has been highly sought after by a number of major firms, including BMW, and served as an executive with Ford Motor Co. The move came after owner Schaeffler Group forced out the previous board chairman Rolf Koerfer, who will nonetheless remain on the board. Also stepping down is board member Michael Frenzel, CEO of travel company TUI. Meanwhile, the Schaeffler Group recently appointed Dr. Peter Pleus (55) and Norbert Indlekofer (51) to the position of President of Schaeffler Group Automotive. They have been appointed successors to Dr. Elmar Degenhart (50), who was appointed Chairman of the Executive Board of Continental AG on 12 August 2009.
Continue ReadingInvestment News Boosts Hankook Shares
In South Korea, shares in Hankook Tire gained 1.84 per cent after the tyre manufacturer announced that it would invest 230 million euros ($334.9 million) by 2011 to expand its factory in Hungary.
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