Bridgestone’s stand at the 2014 edition of the CV Show reflected the prevailing opinion that this year showed an upturn in attendance. The tyre manufacturer, exhibiting its Total Tyre Life, Total Tyre Services and Total Tyre Systems tyre management components, said it saw a 42 per cent increase in visitor numbers on the previous year’s event. Bridgestone said that it hoped to convert the additional exposure of its Total Tyre Care package into increased business.
Finland’s Nokian Tyres Group has reported a year-on-year decline in sales, operating profit and earnings during the first quarter of 2014. Despite a growth in sales volumes, currency devaluation – particularly in the Russian rouble – led to net sales between 1 January and 31 March declining 6.3 per cent to €311.9 million. Operating profit for the period was €68.4 million, 10.4 per cent below the same period a year earlier, and profit for the period amounted to €38.7 million, a year-on-year drop of 39.1 per cent. Earnings per share came to €0.29 as opposed to €0.48 a year earlier.
On 16 April, Pirelli handed out its 2014 Supplier Awards, the third such awards organised by the Italian tyre maker. Nine companies out of the thousands of suppliers Pirelli works with were singled out for recognition based on their performance in a number of areas, including quality – of course – but also “innovation, total cost of ownership, sustainability, global presence, level of service (which includes logistic performance) and speed of execution.” This year the spotlight was firmly on European suppliers, with companies from within this region taking eight of the nine awards.
In the first quarter of this year, sales at Continental Corporation increased 4.4 per cent to €8.39 billion, while net income attributable to shareholders of the parent rose 33.3 per cent to €588.3 million, or €2.94 per share. This jump in profits prompted CEO Dr. Elmar Degenhart to comment that the tyre and automotive systems manufacturer is “very capable of combining our growth with value creation.” EBIT rose by almost 21 per cent year-on-year to €903 million as at March 31. This corresponds to a margin of 10.8 per cent, after 9.3 per cent in the previous year. Adjusted EBIT for the first quarter climbed by 19.7 per cent year-on-year to €953 million in the first quarter. The adjusted EBIT margin was 11.4 per cent.
Zircotec provides technical partnership to 22 Formula Student teams
22 Formula Student teams from around the world are taking up a technical partnership scheme with coatings specialist Zircotec. The company will provide access to professional motorsport thermal management technology for use in their 2014 Formula Student cars. Zircotec stated that there are still places available in the scheme, encouraging more teams to apply.
At present, Trelleborg Wheel Systems manufactures agricultural tyres in Europe and Asia, and soon North America will be added to its agricultural production footprint. Trelleborg has decided to invest SEK 325 million (£29.4 million) between 2014 and 2018 to set up an agricultural tyre production facility in the US. Production is expected to commence in the second half of 2015 and gradually increase.
In response to volatility in the European truck tyre market, a segment that remains 23 per cent below its 2007 historic peak, this morning Michelin announced the planned closure of its truck tyre plant in Budapest, Hungary. Alongside such market factors, Michelin says the facility, acquired as part of its purchase of Taurus Rubber in 1996, is located in an urban area and cannot be further expanded; any other measures to improve its competitiveness would require what Michelin considers an “excessive” upgrade with new equipment. The closure will see the loss of 512 jobs.
Marco Tronchetti Provera does not expect Western Sanctions against Russia to have any impact on Rosneft’s acquisition of a 13 per cent shareholding in Pirelli. Reuters reports that the Pirelli chairman and CEO told journalists on the sideline of an event that “the timetable of the deal is confirmed, nothing has changed.”
241 jobs as Schrader invests £56M in N Ireland TPMS facilities
Schrader has announced an investment of £56 million-plus, creating 241 new jobs at its Carrickfergus and Antrim TPMS facilities. The major investment will see the company expand its production facilities over the next three years. It is also undertaking five research and development projects, and a major staff training programme to equip its engineers with the latest design and production techniques.
Cooper Q1 revenue, operating profit down year-on-year
As Cooper Tire & Rubber enters its centennial year, the US tyre maker has reported first quarter operating profit slightly below the record result achieved last year. On the back of net sales of US$796 million, 7.5 per cent lower than a year earlier, Cooper achieved a quarter operating profit of $81 million, 16.5 per cent down on the first quarter 2013 operating profit, which was the highest ever in the company’s 100-year history. Operating profit was 10.2 per cent of net sales. The company reported net income attributable to Cooper Tire & Rubber Company of $0.71 per share, or $45 million, in the first quarter. This compares with $56 million, or $0.87 per share, for the same period last year.
Kenda expanding European focus with German market launch, developing tyres for our region
Taiwanese tyre maker Kenda intends to strengthen its passenger car tyre business in Europe, and has named the German market as a particular focus. To support its efforts, the company has opened a European headquarters in northern Germany and as of 1 September 2013 employed former GITI Tire passenger car tyre marketing director Michael Andre as its marketing and sales manager for automotive tyres.
Revenue and operating profit at Hankook Tire was marginally lower year-on-year in the first quarter of 2014, the company reported on 30 April. Global sales revenue amounted to KRW 1.675 trillion (£958.9 million) between 1 January and 31 March, 0.3 per cent lower than the revenue achieved in the first quarter of 2013. Operating profit in Q1 2014 was KRW 260.1 billion (£148.9 million), 0.7 per cent less than a year earlier. Operating profit to sales ratio was 15.5 per cent.
Up to a million shares to be acquired in Michelin buyback
Michelin says it has implemented a partial share buyback scheme and under this will acquire up to one million Compagnie Générale des Établissements Michelin shares. The company says it has “called on the assistance of an Investment Services Provider to meet certain objectives” of the share buyback programme authorised at Michelin’s Annual Shareholders Meeting on 17 May 2013.
Continental to take full ownership of emissions JV
Continental has announced its intention to purchase the outstanding shares in the 50/50 Emitec Gesellschaft für Emissionstechnologie mbH joint venture it operates with partner, Worcestershire-based GKN plc. Once the acquisition of the 50 per cent share currently held by GKN is complete, the business will be integrated into Continental’s Powertrain division. With the acquisition of Emitec and the deal’s approval, Continental will emerge as a supplier of exhaust aftertreatment systems. Continental has not stated the price it will pay for the remaining share in Emitec.
As reported on 28 April, as of the start of May Toyo Tire Europe president Naoki Gonsui will also become president of Toyo Tire Deutschland. Toyo has announced a further personnel change taking effect 1 May: Kiyohito Hasumi, currently president of Toyo Tire Canada, will take on the additional role of president, Nitto Tire Canada.
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