Pirelli unveils Q3 results, introduces new Industrial Plan
At yesterday’s presentation of its 2013-2017 Industrial Plan in London, Pirelli & C. SpA highlighted its performance since the presentation of its previous Industrial Plan in 2011 (which covered 2011-2015) and stated its aims for the current period. The event followed the release of the company’s third quarter figures on 5 November. The headline figures for the third quarter are net sales of €1.52 billion (down 2.19 per cent year-on-year, operating income of €201.0 million (up 2.87 per cent), EBIT margin of 13.2 per cent (12.6 per cent in Q2 2012) and net income up 27.36 per cent to €108.0 million.
ETRMA call for end of EU-South Korea trade barriers
On the eve of EU-South Korea summit (7 November) the European automotive industry released a statement calling for more to be done to dismantle barriers to trade in South Korea.
Apollo Tyres’ planned takeover of Cooper Tire appears to be in serious jeopardy as the latest court proceedings reveal the depth mistrust between the two companies. Cooper’s suggestion that Apollo has “buyer’s remorse” and is using the industrial dispute at Cooper Chengshan as a way of sabotaging the deal is the clearest example of this yet. The question of whether or not Apollo is putting everything it can into closing the deal is at the centre of the case. Apollo says it is doing everything it can despite the Chengshan and USW issues. Cooper says these are being used as delay tactics.
Consolidated sales at Germany’s Continental AG reached €8.35 billion in the three months to 30 September, a 2.65 per cent increase on the same period of 2012. Adjusted sales were up 2.44 per cent to €8.31 billion. EBITDA rose 10.36 per cent year-on-year in the quarter to €1.32 billion (15.8 per cent of sales, up from 14.7 per cent) and EBIT grew 15.58 per cent to €886.3 million (10.6 per cent of sales, up from 9.4 per cent).
Nokian’s Vianor network grows, new ‘softer’ franchise model rolled out
During the first nine months of 2013, Finnish tyre maker Nokian Tyres added 124 outlets to its Vianor dealer network. As of 30 September 2013 the Vianor network operates 1,161 centres in 26 countries. Vianor outlets in Finnland, Sweden, Norway, the US, Switzerland and Russia belong to the company while the remaining 978 are bound to Vianor/Nokian through franchise agreements.
At the EICMA motorcycle show in Milan, which opens to the media today ahead of its public opening on 7 November, the newly-created Mitas Moto business unit will introduce itself to the world. The new business unit will also introduce its first product, the Sport Force radial for sport, naked and touring bikes.
Compliance to tyre labelling legislation is lower one year on from its introduction than it was in the opening months of the rules. According to research conducted by market analysts at Encircle Market, the amount of labelling talk has actually decreased since tyre labelling was introduced in November 2012. The research also reveals a number of other details demonstrating relative some degree of inertia when it comes to the subject of tyre labelling.
Nexen’s third quarter figures have underperformed market expectations. According to Deutsche Bank research published 1 November, Nexen’s operating profit results were 13 per cent below consensus expectations.
Czech manufacturer of steel pallets and tyre racks Avex is now operating under a slightly altered name: Avex Steel Products s.r.o. The change of name has also signalled another change for the firm; Avex is now operating with a new website at www.avexproducts.com.
Analysts: Nokian Q3 ‘better than expected’, Q4 ‘weak’
Financial analysts have described Nokian’s latest third quarter financial results as “better than expected”, however they also pointed out that any optimism will be have to be balanced against the details of a recent profit warning. The profit warning referred to forthcoming fourth quarter figures, which are expected to be “weak”, with pre-tax profits (EBIT) estimates projecting a -13 per cent decline.
During the third quarter of 2013, net sales at Nexen Tire Corporation declined 2.9 per cent to KRW 438.5 billion (£253.9 million), the company reports. Gross profit rose 3.6 per cent compared with a year earlier to KRW 124.7 billion (£72.2 million) while operating profit was 12.1 per cent down at KRW 46.3 billion (£26.8 million). EBITDA was 3.1 per cent lower at KRW 71.9 billion (£41.6 million), with the margin stable at 16.4 per cent.
ETRMA: Industry needs ‘sustainable regulatory framework’
As the market approached the first anniversary of tyre labelling, at the start of October industry body ETRMA expressed the need for consistency and sustainability in regulation across Europe. “The European Tyre and Rubber Industry has a strong manufacturing presence in Europe and needs a sustainable regulatory framework, well-coordinated among different policy areas, to remain competitive despite this long economic crisis”, said Patrick Lepercq, President of ETRMA at the association’s board meeting today.
Michelin says it wants its employees to be “more closely associated with the Group’s future growth and development”, and therefore the company is carrying out an offering of shares reserved for current employees of the company and those companies in which Michelin holds at least 50 per cent share capital. The share offer will be conducted in accordance with the conditions set out in the French Labor Code and the French Code of Commerce and is open to employees who are members of the Plan d’Epargne Groupe (Group Savings Plan).
A merger-facilitating deal has been struck between Cooper Tire & Rubber and the United Steelworkers Union. On 30 October, the tyre maker entered into a tentative agreement with the United Steelworkers and United Steelworkers (USW) Local 207L (representing workers at the company’s Findlay plant) and Local 752L (Texarkana), along with USW Local 556L (Clarksdale). Details of the tentative agreement have not yet been disclosed –the agreement must first meet with Apollo’s approval and be ratified by union members.
NTDA/Lanxess report: More budget tyres sold post labelling
Following on from the headline news that Lanxess/NTDA published at report detailing a UK retail perspective on 16 October, Tyres & Accessories is now publishing further details and discussion of the complete report . The initial findings were that the tyre labelling has so far been something of a “missed opportunity” for the tyre business […]
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