Goodyear to redeem $350 million in senior notes
Goodyear Tire & Rubber has called US$350 million of its outstanding 10.500 per cent senior notes due 2016 for redemption on May 27, 2011. The tyre maker intends to use net proceeds from its recent mandatory convertible preferred stock offering to fund the redemption. The redemption will result in savings to annualised interest expense of approximately $40 million, of which about $23 million will be realised in 2011.
Continue ReadingTitan’s earthmover tyre business “really taking off” – Taylor
According to Titan International chairman and CEO Maurice M. Taylor, momentum from the “outstanding” first quarter the company experienced should “carry over into future quarters of 2011.” Upon announcing sales of US$280.8 million during the three months to March 31, a 41 per cent year-on-year increase, Taylor reported continued strength in Titan’s agricultural tyre and wheel business plus growth in the earthmover and construction tyre business; this sector is, the chairman and CEO commented “really taking off and I believe it will strengthen throughout the year.” He further opined that Titan’s markets are “going to keep moving upwards over the next 18 months.”
Continue ReadingConti on track for 10% sales growth in 2011
The first quarter of 2011 will form a “solid foundation” for Continental Corporation’s year as a whole, the tyre and automotive component supplier reported at its annual shareholders’ meeting. The complete report for the first quarter won’t be released until May 5, however at the April 28 event, Continental reported a 20+ per cent year-on-year sales increase during the first three months to more than 7.3 billion euros. EBIT, at nearly 634 million euros, was around 140 million euros higher than in the first quarter of 2010.
Continue ReadingGoodyear 38th in Forbes reputation poll
Goodyear has been ranked the 38th most reputable company in the USA by Forbes magazine. The magazine’s sixth annual ranking of corporate reputation in the US, released on its website, made Goodyear – the only tyre-maker on the list – the highest-ranked company in the automotive industry. The list was compiled based on the results of the Reputation Institute’s US Reputation Pulse consumer opinion survey, which measures the overall respect, trust, esteem, admiration and good feelings consumers hold towards 150 of the country’s largest companies.
Continue ReadingCooper reports domestic, international sales increase in Q1, 2011
Cooper Tire & Rubber has reported a net income of US$16 million attributable to Cooper Tire for the quarter ended March 31, 2011, an increase of $4 million from the same period in 2010. Net sales during the quarter amounted to $906 million, an increase of $152 million, or 20 per cent, from the prior year. Operating profit was $32 million for the quarter, a decrease of $1 million from the prior year same quarter. Results during the quarter included an after-tax gain of $3 million related to the acquisition of a controlling interest in Corporacion de Occidente SA de CV. The Company also incurred costs of $4 million during the quarter. The prior year first quarter included restructuring charges of $8 million, and $22 million of increased charges for an adverse verdict in a single products liability case.
Continue ReadingWholesale changes in UK tyre distribution
Like London buses, acquisitions come along in threes - or so the string of recent purchases in the UK tyre distribution sector would make it seem. Between the tail-end of February and the very first days of March, it emerged that Stapleton’s Japanese owner Itochu had bought Britain’s largest tyre retailer Kwik-Fit, Stapleton’s had itself bought North Eastern Tyres & Exhausts, while fellow Grouptyre member King David Tyres had been sold to Malvern Tyres. And what’s more, this movement doesn’t look like it has quite finished yet. In February Harris Brothers sold its four branches to Micheldever Tyres Services, bringing the company’s retail depot count to 53 and counting. True, this overview is lumping changes in the wholesale business together with developments in the retail sector, but as history and recent events tell us the two parts of the trade are inextricably linked.
Continue ReadingNexen opens European Technical Center in Frankfurt/Hoechst
Nexen Tyre opened a technical centre in vicinity of Frankfurt, Germany in March. Nexen Europe Technical Center (NETC) in Frankfurt/Hoechst aims to be Europe and Korea’s interface for Nexen’s engineering development. At the private opening celebration, Min-Hyeon Han, head senior executive and vice president of Nexen Tyre’s Research and Development Center in Korea emphasized Europe’s central role in the brand’s global expansion. Nexen has set itself the objective of becoming one of the top ten tyre manufacturers worldwide by 2015.
Continue ReadingHankook launches new global TV campaign including ads in UK and Europe
Hankook has released details of a new global TV advertising campaign. The ‘Be One with It’ campaign will roll out in nine different countries in Europe including Germany, UK, Italy, Spain, France, Russia and Hungary as well as in North America (USA/Canada). Instead of showcasing only the tyres’ performance, the campaign focuses more on the drivers feeling of ‘being one’ with the tyre and the road. Extreme sports such as jumping off cliffs and airborne helicopters with specially designed wing suits, called the ‘base jump’ are utilized to present the theme.
Continue ReadingContinental recommends global OEMs adopt direct TPMS technology
Continental recommends car manufacturers worldwide adopt the consistent use of direct measuring technology in their new car models to ensure “vehicle tyres are always inflated to an optimum level.” Writing in a press statement promoting the international tyre, TPMS and automotive supplier’s position on the issue, Continental said its recommendation is based on “steadily rising requirements to take on TPMS” and also reflects the “significant potential of direct measuring technology, making it possible to exploit the greater contribution to CO2 reduction.”
Continue ReadingFull-year profit marks change of fortunes for Kumho
Following several years in the red Kumho Tires has turned its fortunes around and reported a net profit for the 2010 financial year. The South Korean tyre maker recorded a net income of KRW 8,901 million (£5.01 million) during the year, a marked contrast from the loss of KRW 776,168 million a year earlier. Sales for 2010 amounted to KRW 2,701,990 million (£1.52 billion), a 42.6 per cent year-on-year increase. Operating income during the year was KRW 244,947 million (£137.9 million), as opposed to an operating loss of KRW 213,580 million in 2009.
Continue ReadingToyo to acquire majority share in Silverstone manufacturer
At present Toyo Tire & Rubber is in negotiations to acquire a 75 per cent interest in China based tyre manufacturer Shandong Silverstone Luhe Rubber & Tyre Co., Ltd. The Japanese company’s Board of Directors signed an acquisition agreement on April 12 and expects to close the acquisition deal in early June 2011. Toyo plans to begin producing Toyo brand tyres at the new subsidiary “as soon as practicable” and aims to “establish an optimal tyre supply system” both in China and in all its other overseas markets.
Continue ReadingSale of Goodyear Latin America agri tyre business completed
The sale of Goodyear’s Latin America agricultural tyre business to Titan Tire was completed on April 1. Goodyear reports completing the sale for approximately US$99 million, subject to post-closing conditions and adjustments. The transaction includes the company’s Sao Paulo manufacturing plant, property, equipment and inventories and a licensing agreement that will allow Titan to sell Goodyear-brand agricultural tyres in Latin America and North America.
Continue ReadingBridgestone establishes sales company in Morocco
Exports of minerals and agricultural products are significantly growing in Morocco due to free trade agreements the North African country operates with the European Union and United States. On top of this, Morocco is actively establishing additional infrastructure along the Mediterranean Sea coast in the hope of becoming a major hub for the distribution of goods in and out of North Africa. For this reason, Bridgestone Middle East & Africa FZE (BSMEA) sees Morocco as a key region in which rapid economic expansion can be anticipated and has established a new tyre sales company based in Casablanca. The name of the new company is Bridgestone Tire Sales Morocco SARLAU (BTSM). Through the company, which began operation on April 1, BSMEA intends to further strengthen its business in Morocco's “highly promising” market by “increasing its ability to offer high quality products and services to the region.”
Continue ReadingGoodyear offers mandatory convertible preferred stock
On March 28, Goodyear Tire & Rubber announced a public offering of 8.7 million shares of its mandatory convertible preferred stock, with a price of US$50 a share. In addition, the underwriters have an option to purchase up to an additional 1.3 million shares of mandatory convertible preferred stock. The offering is expected to close on March 31, 2011, subject to customary closing conditions.
Continue ReadingConti completes final stage of VDO loan refinancing
The Continental Corporation reports it has successfully completed final stage of its “comprehensive refinancing programme.” On March 29, the automotive supplier agreed to new terms and conditions for its VDO loan for an original financing volume of 6.5 billion euros, maturing next year. The new package features a credit volume totalling six billion euros: One loan tranche of 625 million euros will mature in August 2012, a further tranche of 2.875 billion euros plus a revolving credit facility amounting to 2.5 billion euros have a term of three years. Financing will be provided by more than 35 banks; Continental states it was “significantly oversubscribed.”
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