Cooper Tire: 2013 figures show impact of ‘unique challenges’
Less than two weeks after releasing overdue third quarter 2013 results that reflected the disruptions experienced at Cooper Chengshan in China – a situation that cost the company US$56 million in negative impact, including $47 million in lower volumes and $9 million in manufacturing inefficiencies – Cooper Tire & Rubber has published its fourth quarter and full year 2013 figures. Sales, operating profit and net profit are all lower than in 2012.
In its Annual Report for 2013, which was released today, Nokian Tyres estimates that approximately 111 million winter passenger car and van tyres were sold last year in its main regions of activity. This includes 69 million winter tyres sold in Europe (excluding the Nordic countries) out of a total of 230 million passenger car and van tyres sold in the region.
Conti planning to grow workforce by 7,000 this year
Assuming the market develops according to expectations, Continental intends to increase its global employee count by around 7,000 in 2014. This would bring the number on its payroll to approximately 185,000 by the end of the year. This is about 50,000 jobs more than in 2009, during the midst of the financial crisis. At the end of 2013, the employee count had reached around 178,000, with 50,000 of these positions based in the company’s home country, Germany.
Hankook gains European funds for second Hungarian plant
The European Commission has authorised €57.9 million of regional investment aid for Hankook Tire Hungary Manufacturing and Trading Ltd. This will be used to erect a second greenfield facility alongside Hankook’s plant in Rácalmás, which entered production in 2007. The new consumer tyre facility will produce ultra-high performance tyres, sealant and run-flat tyres, and these products will be sold globally.
This year marks the debut of the FIA World Rallycross Championship, and Cooper Tire Europe has been appointed exclusive tyre supplier. Under the terms of three-year agreement signed with the ‘FIA World Rallycross Championship presented by Monster Energy’, or World RX for short, Cooper will supply tyres to drivers for all 12 rounds of the 2014 season and also over the coming two years. This year’s championship begins at the Pista Automóvel de Montalegre in Portugal on 3 May.
Newly-published third quarter results show a Stamford Tyres experienced slight decline in turnover and a marked year-on-year drop in profits during the period. In the three months ending 31 January 2014, the Singapore-based company’s revenues decreased 2.94 per cent in the quarter to S$71.7 million (£34.0 million). Gross profit was down 2.35 per cent to $16.6 million (£7.9 million). Net profit fell 62.66 per cent to S$838,000 (£397,560).
Brake manufacturer Brembo S.p.A. has posted positive results for 2013 despite an 11.2 per cent drop in net profit during the final quarter of the year. The company’s revenues grew 12.8 per cent to €1.6 billion in 2013 while EBITA rose 23.5 per cent to €212.1 million, with a margin of 13.5 per cent. EBIT increased 35.6 per cent to €121.4 million, with a margin of 7.8 per cent. Net profit rose 14.4 per cent year-on-year to €89.0 million in 2013.
Goodyear is Fortune’s most admired vehicle parts company
The Goodyear Tire & Rubber Company has been recognised as the world’s most admired motor vehicle parts company by Fortune magazine. The tyre maker rose from third place last year to top the current category list on the 2014 World’s Most Admired Companies list, and was ranked first within its category in five of the nine the key evaluated attributes: people management, use of assets, social responsibility, long-term investment and product/service quality. Goodyear’s overall score was 7.09. Michelin, the only other tyre maker named in the motor vehicle parts category, dropped two places since last year to number six and gained an overall score of 5.93.
At the end of April, Yutaka Yamaguchi will end his tenure as managing director of the Bridgestone Technical Center Europe. The tyre maker has not yet named his successor in this Italy-based role.
During last Thursday’s annual press conference, Continental CEO Dr. Elmar Degenhart shared that expansion of the tyre business and further acquisitions are on the cards as part of the company’s aim of reducing its reliance on the automotive original equipment industry. After discussing the recent acquisition of Veyance Technologies, a firm he described as “ideally” matching the ContiTech division in terms of both product range and markets, Degenhart added that further steps towards reducing automotive OE dependence will follow: “Firstly, in the form of continuous expansion of our replacement tyre business. And then too, we are not ruling out the possibility of further acquisitions.”
Goodyear declares dividend on 5.875% preferred stock
Directors of The Goodyear Tire & Rubber Company have declared the final quarterly dividend on the company’s 5.875 per cent mandatory convertible preferred stock. The preferred stock is subject to mandatory conversion into shares of Goodyear common stock on 1 April 2014. A dividend of US$073.44 per share is payable in cash on 1 April 2014, to shareholders who present the preferred stock for mandatory conversion on that date. The payout represents an annual rate of $2.9375 per share.
Nexen distances itself from Czech Republic plant rumours
Nexen Tire will soon make a decision on where to build its new plant in Eastern Europe, and several international news reports point to the Korean tyre maker choosing the Czech Republic. Yet Nexen denies having selected the country, or indeed any particular location, as its preferred site. Responding to news published by Czech News Agency and media questioning, an unnamed company official made clear what Nexen has already decided upon – and what it hasn’t.
April start at Lanxess for Heitmann replacement Zachert
Lanxess shares that Matthias Zachert, named Axel Heitmann’s successor as Board of Management chairman following the latter’s departure from the specialty chemicals firm at the end of February, will resume his career with the company on 1 April. Zachert is currently chief financial officer of Merck KGaA and the functions he will take on at Lanxess are at present being performed by chief financial officer Bernhard Düttmann.
Conti anticipating minor tyre market growth in 2014
This year, Continental expects to sell a total of 11 million more tyres in the European and the NAFTA replacement markets than in 2013. Speaking at the company’s press day in Hannover, Germany today, Continental CEO Dr. Elmar Degenhart stated that the tyre maker anticipates an increase of two per cent in these two regions, markets he said were “very important to our tyre replacement business”. He added that together with further growth effects in Asia and South America, Continental is looking forward to its global replacement tyre business rising three per cent this year. In regards to the original equipment segment, the CEO said Continental expects global production of passenger cars, SUVs and light commercial vehicles to increase by about two per cent.
Toyo Tires has become the latest tyre manufacturer to join TyreSafe. The manufacturer said that it would campaign alongside TyreSafe’s other members from a wide variety of sectors, including councils and insurers as well as companies within the tyre industry, to help raise awareness about the dangers associated with illegal and defective tyres. The manufacturer added that it would seek to enhance its tyre safety message with TyreSafe’s help.
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