Toyo increases turnover and operating profit – but net profit down in 2013
Turnover at Toyo Tire & rubber rose 27 per cent during the 2013 financial year to ¥370 billion (£2.2 billion), the company reports, while operating profit almost trebled to ¥38.3 billion (£224.6 million); operating margin was 10.3 per cent. Despite these favourable figures, Toyo’s bottom line was significantly below its result a year earlier; net profit fell 12.3 per cent to ¥11.6 billion (£68.0 million).
For the third quarter of its financial year – October to December 2013 – Apollo Tyres reports an 8.0 per cent year-on-year rise in consolidated revenue to Rs 34.75 billion (£336.1 million). Operating profit increased 51.2 per cent to Rs 6.19 billion (£66.7 million), a result that includes exceptional items of Rs 1.12 billion (£10.8 million) from non-operational income, and a 17.8 per cent operating margin. Net profit, including the aforementioned non-operational income, rose 86.7 per cent to Rs 3.38 billion (£32.7 million).
Net sales, operating income and net income at Yokohama Rubber rose to record levels during the 2013 financial year, the company reports. It says this performance mainly reflected a tyre business recovery in North America and China along with strong winter tyre sales in the Japanese market. Net income increased 7.3 per cent over the previous year to ¥35.0 billion (£206.0 million), on a 14.0 per cent increase in operating income, to ¥56.6 billion (£333.1 million) and a 7.5 per cent increase in net sales, to ¥601.6 billion (£3.5 billion).
Repeat offending the reason for Bridgestone’s US$425 million fine
Earlier today, Bridgestone shared news that it has entered into a plea agreement with the US Department of Justice on antitrust activities and accepted a $425 million fine. But it omitted to mention that the amount to be paid is so large because this isn’t the first time Bridgestone has been found guilty of price-fixing in the United States. In a statement published yesterday, the Department of Justice confirmed that Bridgestone’s failure to disclose its participation when pleading guilty to other violations in October 2011 was a “factor in determining the $425 million fine.”
Indirect TPMS attractive for volume car models – strong European, North American growth expected in 2014
Come November, every new car and light commercial vehicle sold in the European Union will need to have a tyre pressure monitoring system, making the region the second behind the US to make TPMS fitment mandatory. The question vehicle manufacturers must answer is which type of TPMS is best for them. While direct TPMS systems have enjoyed a lot of attention since the first phase of the ECE R64 legislation came into force in November 2012, one indirect TPMS manufacturer expresses confidence in a growing presence in the high-volume market.
Sumitomo won’t overlook “difference of opinion” regarding Goodyear JV dissolution
Sumitomo Rubber Industries appears to have contested Goodyear Tire & Rubber Company’s claims of “anti-competitive behaviour” on the part of the Japanese tyre manufacturer. Following the news that the two companies are in arbitration regarding the dissolution of their joint ventures and international alliances, Sumitomo published a short Japanese-language statement making it clear that the firm doesn’t agree with Goodyear’s take on things.
Moodys Investors Service has affirmed Goodyear Tire & Rubber Company’s, Corporate Family Rating at Ba3 and Probability of Default Rating at Ba3-PD. In addition Moody’s has revised the companys rating outlook to positive from negative. The Speculative Grade Liquidity Rating was affirmed at SGL-2. The news is likely to be interpreted as a signal of improved financial performance at Goodyear, following the publication of good financial results from the US tyremaker yesterday (13 February 2014). The timing of the announcement is also interesting in light of the new that Goodyear and Sumitomo are dissolving their joint venture.
Following a statement from Sumitomo and comments from Goodyear executives yesterday, later on 13 February 2014 Goodyear confirmed that it is moving to end its joint venture with Sumitomo Rubber Industries. The company also confirmed comments suggesting that the move has been precipitated by alleged anticompetitive behaviour. Writing in the company’s annual report, otherwise known as a 10K filing, company representatives said: “We have learned that SRI has engaged in anti-competitive conduct that we concluded warrants the dissolution of the global alliance”.
Bridgestone reaches plea agreement with US Department of Justice
On 13 February, Bridgestone Corporation entered into a plea agreement with the US Department of Justice; this deal will see the company plead guilty to an antitrust conspiracy related to the sale of automotive anti-vibration rubber products. Bridgestone will also pay a US$425 million fine, and says it now intends to “take appropriate disciplinary action against certain responsible employees” in accordance with applicable corporate standards.
Yokohama, Kumho follow MoU up with R&D master agreement
The Board of Directors at Yokohama Rubber and Kumho Tire have resolved to enter into master technological alliance agreement. This agreement is the result of discussions between the two companies following their signing of a Memorandum of Understanding on 29 November 2013; Yokohama says the newly-signed agreement defines the framework and purpose of the technology alliance the two tyre makers will share, and it paves the way for further discussion of the details of the their proposed technology tie-up.
Goodyear ending Sumitomo alliance due to “anti-competitive” behaviour
At the tail-end of Goodyears full-year 2013 results conference call, Laura Thompson (executive vice-president and CFO) appeared to suggest that the key reason Goodyear has opted to end its global alliance with Sumitomo is because the Japanese firm has engaged in alleged “anti-competitive” behaviour: “Sumitomo has engaged in anti-competitive conduct in relation to anti-trust laws and we think that warrants a dissolution of the partnership. On January 10 we began arbitration to dissolve the partnership.” As a result the American company could be poised to buy out Sumitomos joint venture shares.
Goodyear reports 27% increase in 2013 operating income
Goodyear Tire & Rubber Co. has reported full-year 2013 annual sales of US$19.5 billion, down 7 per cent from 2012. However, operating income was up 27 per cent compared with 2012 at $1.6 billion. Reference to the news that Sumitomo and Goodyear are looking to end their international joint ventures were noticeable by their absence from the official results reports. The company reported that it generated more than $1 billion of free cash flow from operations, resulting from higher net income and a $415 million benefit from working capital.
Goodyear wants to end Sumitomo Rubber tyre joint venture
Goodyear Tire & Rubber Co. Ltd has asked Sumitomo Rubber Industries Ltd. to end the two companies’ tyre joint venture in Europe and alliances in Japan and the US. According to a report published by the Kyodo news agency and reproduced by numerous sources online, the increasing influence of emerging economies (as opposed to the mature markets in the cooperation) is behind the move. A Japanese language statement on Sumitomos corporate website appears to confirm the report. Tyres & Accessories is seeking further confirmation and comment on this breaking news and will publish additional details as they become available.
Aviation tyre manufacturer Dunlop Aircraft Tyres Limited has distanced itself from Goodyear Dunlop’s decision to end motorsport tyre production in the UK later this year. In a short statement, the company points out that it is “in no way connected to Goodyear Dunlop” and clarifies that “there are no changes to the operation of Dunlop Aircraft Tyres.
Uniwheels appoints new CFO, posts preliminary 2013 results
As of 10 February, Dr. Karsten Obenaus is the new CFO of alloy wheel manufacturer Uniwheels. Previously head of financial accounting, Dr. Obenaus has long held senior positions within Uniwheels’ finance department. He succeeds Eckehard Forberich, who has left the company. Forberich held the role of CFO since 1 July 2011.
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