Bridgestone named America’s Golf Cup title sponsor
Bridgestone is to be title sponsor of the inaugural America’s Golf Cup, which will take place at the Pilar Golf Club in Buenos Aires, Argentina between 20 and 26 October. Upon announcing the deal, Bridgestone described the Bridgestone America’s Golf Cup as an “important platform” for advancing golf in the Latin America region and a venue for promoting the company’s product portfolio.
Strong growth for Sumitomo Rubber Industries in H1 2014
Robust growth was once again order of the day at Sumitomo Rubber Industries (SRI). The company reports that in the first half of 2014 its turnover has increased to 379 trillion yen (£2.2 billion). This growth almost exclusively came through the company’s tyre business; SRI is the second largest Japanese tyre maker and its active worldwide with the Dunlop (outside of Europe and North America) and Falken brands.
Cooper extends timeframe for Cooper Chengshan talks
Yesterday Cooper Tire & Rubber Company announced it has extended, for a brief period, the option commencement deadline within the agreement that Cooper, Chengshan Group Company Ltd. and the CCT labor union reached in January of this year, which set forth a process to determine the future ownership of Cooper Chengshan (Shandong) Tire Company Ltd (CCT).
After a first quarter punctuated by lower year-on-year net sales and income, Cooper Tire & Rubber achieved growth – albeit slight – in the second quarter. During the three-month period ending 30 June, the tyre maker’s year-on-year net sales increased 0.5 per cent to US$888.7 million. Operating profit rose 10.7 per cent to $76.6 million, with operating margin reaching 8.6 per cent (7.6 per cent in Q2, 2013). Cooper says the increased in operating profit resulted primarily from favourable raw material costs of $67 million, higher unit volume of $13 million, favorable selling, general and administrative costs of $10 million, and manufacturing cost efficiencies of $7 million, which more than offset unfavorable pricing and mix of $85 million. The 2013 operating profit included $7 million in costs related to the then-pending merger with Apollo Tyres, which subsequently did not occur.
Bridgestone has announced the appointment of several senior executives to a new organisation called the BIOC – the Bridgestone International Organizing Committee. Bridgestone CEO and board chairman Maasaki Tsuya has been named BIOC chairman, effective 1 September. Tsuya will be supported in this position by COO and Japan business head Kazuhisa Nishigai, who will become vice-chairman of the BIOC, and Yuichiro Takenami, who will be BIOC secretary general.
First-half 2014 results show Bridgestone’s positive development in Europe
In the second quarter of 2014, Bridgestone managed to increase its turnover, and its operating profit even more so. And the figures for Europe were particularly noteworthy and show a continued improvement, even if they remain below company average.
500+ former Unipart Automotive employees now with Andrew Page, Parts Alliance
When Unipart Automotive went into administration, Andrew Page and The Parts Alliance struck a deal to take over 33 branches, saving around 320 jobs. Since then Euro Car Parts has hired 65 more ex-Unipart staff, while promising another 1,500 jobs to be created in the comig 18 months. According to the latest reports from The Parts Alliance, this number has risen to around 500 ex-employees of Unipart Automotive. And the parts buying and distribution group says that extra jobs are planned for more of the reported 1,244 staff members made redundant by Unipart Automotive’s demise.
In the first half of the year Pirelli was unable to maintain its year-on-year turnover, however it increased its profitability significantly and profited from the premium segment’s growing significance to the Italian tyre maker; the premium segment now accounts for more than 56 per cent of total turnover, as opposed to 50.5 per cent last year. And while total volumes increased by 1.8 per cent in the period between 1 January and 30 June, premium volumes shot up 21.6 per cent.
Although volumes at Lanxess increased two per cent year-on-year in the second quarter of 2014, this could not fully offset the five per cent decline in selling prices it experienced. Therefore, the company’s overall sales fell 5.7 per cent year-on-year to €2.02 billion. “The continuing low earnings level and increasing competition show the need for further action to improve competitiveness, said Board of Management chairman Zachert.
Breuers steps down from Lanxess role as restructuring gets in swing
Preparation for certain aspects of the restructuring awaiting Lanxess AG has already begun, and come at a time when the company is able to report improved year-on-year performance. The group-wide programme initiated by the company’s Board of Management on 24 July 2014 will see the number of Lanxess business units shrink from 14 to ten and will involve cuts to the company’s global administrative workforce. The business unit mergers will take effect 1 January 2015.
Apollo Tyres’ Q1 profit increase falls short of expectations
On 6 August the Board of Directors at Apollo Tyres Ltd approved the company’s unaudited results for the first quarter of its 2014-15 financial year. For the three-month period ending 30 June 2014, Apollo Tyres Ltd, on a consolidated level, reported net sales of Rs 32.35 billion (£314.29 million), 1.4 per cent higher than a year earlier. Operating profit rose 13.4 per cent to Rs 4.58 billion (£44.50 million) and net profit was up 37.3 per cent to Rs 2.28 billion (£22.15 million).
Kanwar speaks on Cooper and future growth at Apollo AGM
Onkar Kanwar has used the opportunity afforded by his company’s 41st Annual General Meeting to share Apollo Tyres’ view of why the planned acquisition of Cooper Tire & Rubber never materialised. The Apollo chairman also spoke on upcoming plans and the market opportunities and challenges the tyre maker has identified.
Superior Industries International reports lower year-on net income in the second quarter of 2014, despite net sales remaining the same. The company achieved net income of US$5.0 million, or $0.18 per diluted share, for the second quarter of 2014, compared with net income of $6.3 million, or $0.23 per diluted share, for the second quarter of 2013.
Bridgestone representatives at the launch of the new Firestone Destination HP SUV tyre in Valencia were particularly keen to stress the importance of the event beyond the product itself. While the product, representing an important segment for the company’s second line brand, provided plenty of the technological improvements usually expected of a new flagship tyre in metrics such as dry and wet braking, rolling resistance and noise, this was also a “rejuvenation” of a name that has kept a relatively lower profile outside USA in recent years.
European Commission approves Bekaert acquisition of Pirelli steel cord business
The European Commission has approved the proposed acquisition of the steel tyre cord business of the Italian company Pirelli by its Belgian-based rival NV Bekaert SA under the EU Merger Regulation. According to an official statement dated 31 July, the commission concluded that the acquisition “would not raise competition concerns as the merged entitys customers, which are large, multinational tyre companies, have countervailing buyer power which is further strengthened by over-capacity in the steel tyre cord market.”
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