Reliance Industries to build up rubber business
A new major player may be set to enter the global rubber industry: India’s Reliance Industries (RIL) intends to invest in building up a rubber business to meet growing demand in Asia. "We are developing a whole new rubber business,” company chairman Mukesh Ambani told India’s Economic Times. “We will make RIL one of the world's largest players in rubber as the whole tyre industry moves to Asia. The big trend is that if you look at next ten years, the projections for automobile growth is all China, India and Asia focused." In total, RIL plans to invest some US$10 to $12 billion in its chemical business to strengthen the company’s portfolio in a number of sectors.
Continue ReadingDuPont acquisition of Danisco finalised
DuPont’s acquisition of Danisco has been finalised. On May 16 the chemical company reported that its wholly-owned subsidiary DuPont Denmark Holding ApS had taken on 92.2 per cent of Danisco’s outstanding shares, having paid 700 krone (£82) per share. Following the acquisition’s finalisation DuPont CEO and chair Ellen Kullman said “we are delighted that the tender has been successful and we can move on to the process of integrating Danisco into DuPont.” Danisco chairman Jorgen Tandrup added the Danish company is “very pleased that a vast majority of Danisco shareholders have accepted DuPont's offer” and commented on the two companies’ shared outlook on science and research capabilities.
Continue ReadingYHI – Now is the ‘right time’ for greater OEM sector involvement
The newly-released annual report from YHI International states the Singapore-based wheel manufacturer and automotive components distributor is embarking on a “new exciting era.” Specifically, the company has begun a five-year expansion plan to grow its manufacturing and distribution segments and achieve sales of S$1 billion (£494 million) by the 2015 financial year.
Continue ReadingMichelin 2010 market recovery ‘much stronger than envisioned’ – Senard
At the Michelin Annual Shareholders’ Meeting on May 13, the French manufacturer reported its position strengthened in every geography during 2010 and particularly in mature markets. “Last year at this same time we were observing how the exceptional crisis of 2009 had had an impact on our business,” observed Michelin managing general partner Jean-Dominique Senard. “I think that this year we need to admit that the 2010 context is different and it was a buoyant situation. We had a much stronger market recovery than we could have envisioned at the time.”
Continue ReadingJaxQuickfit tweaks website in response to changing consumer requirements
Australian fast fit chain JAXQuickfit Tyres has introduced a new section on its jaxquickfit.com.au website dedicated to informing potential customers about eco-friendly tyres and identifying suitable products for their vehicles. The company introduced this new website section after observing a shift in customer tyre requirements in recent times. JaxQuickfit CEO Jeff Board explains: “No longer are they primarily focusing on safety and cost-effectiveness aspects of tyres, many are now also seeking tyres that possess environmentally friendly features also.” Eco tyres are identified on the JAXQuickfit Tyres website by a green leaf symbol.
Continue ReadingHigher sales, profits in revised Bridgestone projections
A combination of successfully implemented cost-cutting initiatives plus increased tyre prices in international markets are behind Bridgestone Corporation’s release of revised consolidated financial projections for the fiscal year ending December 31, 2011. The Japanese tyre maker now expects to achieve net sales of 1,480,000 million yen (£11.2 billion) during the first half of the current financial year and 3,190,000 million yen (£24.1 billion) for the full year to December 31 – an increase of 10,000 million yen on the projected figures released on February 18. Operating income for the first half has been bumped up to 72,000 million yen (£544.7 million) and 167,000 million yen (£1.3 billion) for the full year, both 27,000 million yen more than projected in February. Ordinary income projections for the half and full year have both also been upwardly revised 27,000 million yen, to 64,000 million yen (£484.2 billion) and 151,000 million yen (£1.1 billion) respectively. Projected net income for the half and full year has been increased by 12,000 million yen to 35,000 million yen (£264.8 million) and 94,000 million yen (£711.1 million).
Continue Reading‘Ambitious growth strategy’ paying off as Lanxess profits jump 60% in Q1
The year has started well for Lanxess. After achieving what it calls its “best-ever quarterly result in the first quarter,” the German specialty chemical company says it is on track to achieve EBITA pre-exceptionals in excess of one billion euros in 2011; during the first quarter its EBITA pre-exceptionals rose 38 per cent year-on-year to 322 million euros, with double-digit growth recorded in all its segments and regions. The company’s sales increased 29 per cent year-on-year in the three months to March 31, 2011 due to higher volumes and price increases that helped offset rising raw material costs. EBITDA margin pre exceptionals rose to 15.5 per cent in the first quarter from 14.4 per cent a year earlier and net profit increased 60 per cent year-on-year to 166 million euros.
Continue ReadingGrowing domestic, exports sales drive positive 2010 for Brisa
Last year saw an upturn in global tyre markets following the slump of 2008 and 2009, and in presenting the 2010 annual report for Turkish tyre maker Brisa Bridgestone Sabanci Tire Manufacturing and Trading, chairperson Güler Sabanci said “Brisa reacted to this positive turn as efficiently as it reacted to the sudden deterioration that was previously caused by the harsh effects of the global financial turmoil; and managed the increase of demand in a brilliant fashion.”
Continue ReadingSRI profits down 16.7% in Jan-Mar quarter
Consolidated quarterly figures for Sumitomo Rubber Industries show the Japanese manufacturer to have earned 145,072 million yen (£1.1 billion) in net sales during the three months to March 31, 2011, a year-on-year increase of 8.2 per cent. Tyre sales accounted for 85.7 per cent per cent of this total, or 124,316 million yen (£942.5 million), a rise of 11.4 per cent compared with the corresponding quarter of 2010. Yet although sales were up during the quarter, operating income was down 0.6 per cent to 9,711 million yen (£73.6 million) and net income decreased 16.7 per cent to 4,242 million yen (£32.2 million). Operating income for the company’s tyre business was 8,465 million yen (£64.2 million) a year-on-year increase of 17.4 per cent.
Continue ReadingIncreased costs driving Ceat profits down
Diminished profits are the order of the day in Ceat Ltd’s audited financial results for the financial year ended March 31, 2011. Performance in the final quarter impacted on the Indian manufacturer’s performance, and despite annual income growing 24.2 per cent to Rs 35163.3 million (£477.3 million), annual net profit plummeted from Rs 1610.3 million at the end of 2010 to Rs 222.8 million (£3.0 million).
Continue ReadingFY2010 sales stable, profits down at Toyo
Despite a slight increase in net sales and a significant jump in operating income, during the financial year ending March 31, 2011 Toyo Tire & Rubber reported a net income significantly lower than in the previous 12-month period; its net income of 521 million yen (£3.9 million) was 2,436 million yen or 82.4 per cent lower than a year earlier. During the year net sales increased 2.2 per cent to 294,092 million yen (£2.2 billion) and operating income was up 40.6 per cent to 12,182 million yen (£92.4 million). Annual ordinary income amounted to 9,193 million yen (£69.7 million) and was 2.4 per cent higher than in the previous year.
Continue ReadingGajah Tunggal profit grows 35% in first quarter
Indonesia’s Gajah Tunggal has reported a net profit of Rp 332 billion (£23.4 million) in the first quarter of 2011, a 35 per cent year-on-year and 182 per cent quarter-on-quarter increase. This result is “well above” Deutsche Bank’s consensus (the bank’s equity research analysts comments that it is equal to 40 per cent of consensus and 43 per cent of its full year 2011 forecast). Much of this growth was, however, from foreign exchange gains and associates. Core net profit, excluding foreign exchange and associates, was Rp 181 billion (£12.8 million) – relatively unchanged from the first quarter of 2010 and a quarter-on-quarter increase of 60 per cent.
Continue ReadingImproved core business gives Nokian a ‘flying start’ to 2011
The quarter one results released by Nokian Tyres plc on May 6 show the group’s net sales to have increased 57.3 per cent to 289.2 million euros in the three months to March 31, 2011 and profit up 211.1 per cent year-on-year to 62.4 million euros. For the rest of 2011, the Finnish tyre maker anticipates operating profit, which during the first quarter jumped 241.8 per cent year-on-year to 183.8 million euros, will “improve clearly” compared with 2010; this may be helped by a 30 per cent increase production capacity during the year, largely in its Russian plant. The challenge posed by raw material costs remains, however, and Nokian anticipates these will this year be 30 per cent higher than in 2010. To counter this, Nokian is preparing for “further tyre price increases during 2011.”
Continue ReadingQ1 puts Pirelli on track for 2011 sales of “above 5.85 billion euros”
Results for the first three months of the current financial year show Pirelli & C. SpA revenues increasing 23.4 per cent year-on-year to 1,401 million euros and a 43.3 per cent growth in the company’s gross operating result (EBITDA) to 203.4 million euros. The operating result (EBIT) before restructuring charges was 146.5 million euros, compared with 90.2 million euros in the first quarter of 2010, while EBIT after restructuring charges was 143.3 million euros, a year-on-year increase of 63.6 per cent. EBIT margin increased from 7.7 per cent in the first quarter of 2010 to 10.2 per cent.
Continue ReadingGoodyear reports record sales and a Q1 profit
Goodyear Tire & Rubber has reported record sales and higher unit volumes for the first quarter of 2011 – and a net profit for the quarter. The tyre maker’s first quarter 2011 net income was US$103 million, up from a net loss of $47 million for the same period in 2010.
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