Conti acquires remaining share in British engineering firm
On 3 February, Germany’s Continental AG took over full ownership of its joint venture, Zytek Automotive. It previously had a 50 per cent shareholding in the Fradley Park (near Lichfield) company, and following the buy-out is operating it as a part of the Continental Engineering Services (CES) organisation in the United Kingdom. Neither Continental nor former joint venture partner Zytek have disclosed the price paid for the 50 per cent share in Zytek Automotive.
Bridgestone has won the ‘Deutscher Mediapreis 2014’ award in Germany for its launch of the Adrenalin RE002 urban sports tyre in 2013. The tyre maker’s ‘Ultimate Experience’ launch event was voted top in the ‘Media Idea of the Year: brand experience/event’ category. The award was received by representatives of international media agency PHD Germany and OMG Fuse, agency for brand staging and social media, on behalf of Bridgestone Europe at the Mediapreis awards ceremony in Munich on 6 March.
China to host Michelin’s ‘Challenge Bibendum’ in November
It’s back after an absence of three and a half years – between 11 and 15 November the Michelin Challenge Bibendum returns. This time the sustainable mobility action takes place in Chengdu, China; the choice of location was announced at a joint press conference by the Michelin Group and the Chengdu municipal government. The five-day event will mainly take place at the Chengdu International Intangible Culture Heritage Exposition Park and will follow the theme of “Innovation in Mobility at the Heart of Growth & Urban Well-being.”
Pirelli & C. S.p.A states that it will appeal the European Commission’s decision regarding cable cartel activity. While the Commission does not directly name Pirelli as a participant in an alleged cartel in the underground and submarine power cable market, it deems the Italian company “jointly and severally liable” as Pirelli owned alleged cartel protagonist Prysmian Cables and Systems (formerly Pirelli’s Cables and Systems division) until 2005, and therefore “exercised a decisive influence” over the business for the first six years of the decade-long cartel. The European Commission has imposed a shared fine of €67.31 million on Pirelli and Prysmian.
Nokian Tyres revises forecast – sales, operating profit to decline
Due to a weaker economic forecast for Russia and the CIS, Nokian Tyres has downgraded its guidance for 2014 and now says net sales and operating profit will decline this year compared with 2013. This latest forecast replaces that published on 7 February, in which Nokian Tyres said it was positioned to show growth in net sales and operating profit this year.
Aeolus, Athlete, Linglong agri a Reifen focus for Heuver
Heuver Tyrewholesale has announced it will once again attend the Reifen trade show, which takes place in Essen, Germany this May. The wholesaler says its trade fair schedule features a lot of time for maintaining and expanding customer relations, while also highlighting the latest products by its important and exclusive (in eight markets) brand Aeolus. In terms of wheel rims, Heuver will give specific attention to the Athlete brand. It will also focus on the latest agricultural tyres by LingLong, which Heuver distributes in a number of markets. The Heuver stand can be found in Hall 2, stand number 2E48.
Groundbreaking takes place for Bridgestone’s factory in Russia
Almost a year after Bridgestone’s plans to establish a joint-venture factory in Russia’s Ulyanovsk Oblast region were made public, groundbreaking was held at the site of the tyre maker’s future passenger car radial factory on 1 April. The facility will be erected on an 81 hectare site around 900 kilometres (560 miles) southeast of Moscow, and production is expected to start in the first half of 2016. Plant output estimated to reach approximately 12,000 units a day by the second half of 2018.
Blackcircles ‘growing’ revenue through 1,200 fitting centres
Blackcircles.com has announced a growth in revenue of 20 per cent to £27.8 million (versus £23.2 million in 2012). The online tyre retailer said that the latest full year results mean its revenues have a compound annual growth rate of 22 per cent since 2008. EBITDA increased to £1 million. The results follow the announcement of former Tesco chief executive Sir Terry Leahy’s appointment to the Blackcircles.com board.
Football sponsorship has been a favoured means of brand promotion at Continental since it became a Champions League partner in 1995, and in addition to its numerous global, regional and national commitments it has now signed up as an official sponsor of the AFC Asian Cup Australia 2015. At the centre of this deal with the Asian Football Confederation is a championship taking place in Australia between 9 and 31 January 2015; teams from 46 countries will be involved and match coverage will reach up to 2.5 billion spectators.
Germany’s Reiff Group, whose business portfolio includes tyre and wheel wholesale and retail activities, has reported that “two negative influences” affected its business in 2013: A one-off effect of €4.9 million and a drop in margins in its tyre business. Group turnover fell 3.6 per cent year-on-year to €509 million, with €358 million coming from its tyre and auto business. The company reported a net loss of €8.7 million; in 2012, it achieved a net profit of €0.6 million.
While much attention has been placed on road rage and its causes, one factor has been overlooked – until now. A newly-released report has found a remarkable correlation between road rage incidents and choice of tyre. Aggressive tread patterns do, it seems, make for aggressive drivers.
Analysts: Foreign exchange outlook the only bad news in Pirelli results
Financial analysts have responded positively to Pirelli’s full-year 2013 financial results, with some reiterating their “outperform” guidance. The upbeat response was markedly different to the warnings of some market observers 24 hours earlier, which suggested the emerging market exposure (and its linked foreign exchange fluctuations) and Russian volatility in particular could undermine the company’s 2014 and 2015 outlook.
Pirelli reports increased sales but flat profits in 2013
Pirelli & C. SpA today reported full-year 2013 consolidated revenues of 6,146.2 million euros on 31 December, an increase of 1.2 per cent from 6,071.5 million euros a year earlier. Tyre revenues, which account for almost all of the company’s sales totalled 6,115.8 million euros in 2013, an increase of 1.4 per cent from 6,031.3 million euros. Full year tyre-derived pre-tax profits (EBIT) were 822.0 million euros, an increase of 1.2 million euros (+0.1 per cent) compared with 820.8 million euros in the same period a year earlier, with a margin equal to 13.4 per cent (13.6 per cent in 2012). However, whether it will be enough to allay pre-release market fears that emerging market exchange rates and particular Russian market instability remains to be seen.
Goodyear Tire & Rubber announced today that all outstanding shares of its 5.875 per cent mandatory convertible preferred stock will convert to Goodyear common stock shares at the close of business on 1 April 2014. On this mandatory conversion date, each preferred stock share, unless previously converted, will automatically convert into 2.7574 shares of common stock.
Pirelli may reduce 2014 sales goal due to Russia, emerging market pressures
While Pirelli’s recent sale of a 13 per cent shareholding to Russian petrochemical giant Rosneft brings it access to 2,800 petrol station/tyre points of sale, some industry observers are also warning that the political environment and the deal itself are on shaky ground. On the one hand the collaboration is expected to put Pirelli on a par with the premium leader in Russia, Finnish tyremaker Nokian Renkaat, in terms of a distribution network size there is more than one way to skin a cat in terms of distribution and other factors could end up affecting Pirelli’s overall sales targets. The company is set to publish its full year 2013 results this evening, along with its 2014 outlook commentary.
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.
