While Goodyear Tire & Rubber has expressed satisfaction with the US$373 segment operating income earned in the first quarter of 2014, chairman and CEO Richard Kramer acknowledged the effect of ‘headwinds’ in emerging markets during the three-month period, particularly the impact of Venezuela on the company’s Latin America business. Segment operating income was up 24 per cent year-on-year and had a margin of 8.3 per cent; this is the fourth consecutive quarter where SOI margin has exceeded eight per cent.
After what it says was “a successful start to the new year,” Continental Corporation has raised its adjusted EBIT outlook. “For fiscal 2014 we intend to comfortably achieve an adjusted EBIT margin of 10.5 per cent instead of the originally advised 10.0 per cent,” announced Continental CEO Dr. Elmar Degenhart at last Friday’s Annual Shareholders’ Meeting.
Toyo opens new sales subsidiary as part of European restructuring
At present, Toyo Tire & Rubber is restructuring its Toyo Tire Europe GmbH subsidiary, with the aim of operating it as a holding company that will manage the tyre maker’s sales subsidiaries within Europe. Toyo says the restructuring will promote cohesive pricing policies and integrated marketing, optimal distribution and more agile management. As part of this, on 1 May Toyo Tire Europe will hand over sales activities for the German and Austrian markets to a new sales subsidiary, Toyo Tire Deutschland GmbH. This new subsidiary will have responsibilities similar to those held by Toyo Tyre (UK) Ltd and the company’s other national sales organisations. It will be located at the same address as Toyo Tire Europe and Naoki Gonsui will serve as president of both operations.
Following the publication of Michelin’s first quarter 2014 revenues, which show a 2.4 per cent drop in group sales, market analysts have responded by pointing out that the 4.758 billion euro figure fell just short of the 4.765 billion euro average of expectations. Nevertheless Michelin has held to its 2014 objectives including increasing volumes 3 per cent; increasing operating income before non-recurring items; and achieving structural free cash flow of greater 500 million euros along with capital expenditure of 2 billion euros.
Titan to reduce employee headcount following disappointing Q1 performance
First quarter 2014 financials for Titan International are out, and Maurice Taylor says the company’s performance during the opening three months of the fiscal year fell short of expectations, mainly due to a “nonexistent” mining business, declines in the original equipment and aftermarket agricultural segments, and higher fuel costs. Titan now intends to instigate a series of optimisation measures at its global facilities.
The Mitas touch – a new plant, agri tyre ‘revolution’, and a changing brand focus
Ask many Subaru owners if they’re familiar with Fuji Heavy Industries and you’ll receive a negative response, even though one of the company’s products is parked in the driveway. Czech Republic-based tyre maker Mitas has faced a similar situation in recent years. Even though the off-road specialist’s share of the European agricultural tyre market (not counting imports from outside Europe) is said to be around 35 per cent, recognition of the Mitas name doesnt necessarily reflect this. The company now intends to change this state of affairs, and the percentage of tyres it produces under the Mitas brand name is set to markedly increase over the coming five years.
Michelin reports higher volumes, lower sales in Q1 2014
During the first quarter of the 2014 fiscal year, Michelin experienced a 3.4 per cent rise in volumes, with fast original equipment segment momentum and growth in the truck tyre business, while weak mining tyre sales were offset by growth in aviation and two-wheel tyre business within the specialty tyre segment. This increase in volumes did not translate to higher net sales, however.
Overall Michelin Group sales declined 2.4 per cent year-on-year to €4.76 billion.
Van den Ban continues investment in IT solutions and logistics
An individual company has no say over the economy, nor can it order the weather conditions that best suit its requirements. But it can adapt to these variables, and prosper. Although the past year was a challenging one for tyre wholesalers in Europe, Netherlands-based wholesaler Van den Ban Autobanden B.V. has continued to invest time and resources in projects that will help it move forward in the current environment. Commercial manager Cyril Versteeg and Leonie de Wit of the marketing department recently shared details of these developments with Tyres & Accessories.
The share prices of India’s leading tyre companies surged in value on Good Friday prior to the Easter weekend. Overall shares of Indian tyre companies shot up by up to 17 per cent, accompanied by heavy volumes reportedly due to “expectations of higher revenue growth during the current fiscal”, according to local news sources. Apollo Tyres, Ceat, Goodyear India, JK Tyre Industries, Balkrishna Industries and TVS Srichakra all rose by between 4 and 17 per cent each on the Bombay Stock Exchange (BSE) during Friday’s trading.
Continental tyres OE on Porsche Macan and Panamera
Continental tyres will be fitted as original equipment on the new Porsche Macan SUV. According to the company, Continental has won both summer and winter tyre approvals.
Continued branch attrition at some of Britain’s largest tyre retail chains means the line between the top five and the rest of the top 10 has continued to blur. Furthermore, we now have three 50+ branch retail chains outside the top four (which are all 100+) for the first time since Tyres & Accessories started tracking this data five years ago.
Michelin to invest 100M euros into Polish agricultural tyre plant modernisation
Michelin has reinvigorated plans to invest more than 410 million zloty (almost 100 million euros) in the modernisation of its Olsztyn agricultural tyre plant in northern Poland, first mooted in August 2013.
ETRMA: Tyre sales show double digit growth in 1Q 2014
The European Tyre and Rubber Manufacturers Association (ETRMA) has welcomed first quarter 2014 figures compile from members’ sales and showing the years has got off to a good start. However, we also have to remember that the comparison with the same period 2013 is putting the figures against a low base.
NTDA shares its view on tyre labelling consultation
Following the news that the government is consulting the market on the full implementation and enforcement of tyre labelling legislation in the UK, the NTDA has shared its views on both the process and its response to the consultation.
According to the NTDA, the government consultation proposal can be summarised like this: “The department has appointed a tyre enforcement authority (the National Measurement Office) which will be responsible for organising a risk-based market surveillance approach and for the application of appropriate enforcement measures that impose the minimum burdens necessary to meet our EU obligations.
ITMA tyre test partner Tread expands development capability
ITMA technical partner, Tread Ltd, reports that it has invested in expanding the services available to members. The company’s permanent test fleet now includes a magazine standard VW Polo to sit alongside its existing VW Golf, meaning that test and development of all standard tyre sizes is even easier.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
