Analysts: Nokian Tyre 2Q Net Income 80% Ahead of Expectations
Following Nokian Tyres’s reporting of second quarter revenues of 260 million euros (13 per cent higher than consensus, up 36 per cent year-on-year), financial analysts have praised the Finnish tyremaker for beating net income predictions by up to 80 per cent and an overall “good quarter.” Searching the detail of the company’s second quarter presentation also reveals that, due to raw material price increases, the market can expect tyre price increases of 2 - 6 per cent during the summer and autumn of 2010. Other key company targets for the second half of the year include: to increase sales in all areas especially Russia, increase market share in core markets, and to “utilize the most feasible capacities.”
Continue ReadingDespite Challenges, Bridgestone Rides Recovery in H1 2010
For Bridgestone, the first half of the 2010 financial year presented an operating environment “plagued by rising prices for raw materials.” Yet, despite these challenges, the Japanese tyre maker saw signs of a slight recovery in its domestic market plus a gradual recovery in the US and accelerated recovery in Asia and particularly in China. Bridgestone acknowledges that conditions in Europe remain “challenging”, but notes that the business climate there showed signs of bottoming out. In these operating conditions, Bridgestone states that during the six months to June 30, 2010 it stepped up efforts to improve manufacturing productivity, increase sales of highly competitive products, strengthen supply capacity and effectively utilise its management resources.
Continue ReadingGermany’s Gumasol Becomes Ruia Group Subsidiary
On August 1 the German tyre component manufacturer Gumasol-Werke Dr. Mayer GmbH & Co. KG became a subsidiary of India’s Ruia Group. The firm will continue operation at its site in the Rhineland-Palatinate town of Germersheim under the name Gumasol Rubber-Tec GmbH and all 110 jobs at the plant have been retained. Gumasol describes its acquisition by the Ruia Group as “a new chapter” for a company “rich in tradition”, and comments that the incorporation of a previously medium-sized firm into an international enterprise “offers very good perspectives for Gumasol-Werke.”
Continue ReadingSales, Profits up at Toyo in Q1, 2010
During the first quarter of the 2010 financial year, Toyo Rubber received net sales of 72,162 million yen (£528.2 million), a 15.7 per cent increase on the same period last year. This increase in sales was matched by a 13 per cent increase in global tyre sales by volume, with a total of 43,700 tonnes of tyres produced in the three months to June 30, 2010. The bulk of this, 37,500 tonnes, was destined for the Japanese market. Operating income for the quarter was 2,612 million yen (£19.1 million), compared with an operating loss of 3,054 million yen a year earlier, and net income amounted to 743 million yen (£5.4 million) compared with a net loss of 2,620 million yen in the same period of 2009.
Continue ReadingNokian Increasing Capacity in Second Half to Meet Demand
Net sales at Nokian Tyres rose 36.3 per cent year-on-year during the second quarter of 2010 to 260.4 million euros, giving the Finnish tyre maker total net sales of 444.2 million euros in the current financial year – an increase of 28.1 per cent over the first half of 2009. Operating profit for the quarter was 60.9 million euros, a year-on-year growth of 200 per cent, while operating profit for the first half stood at 82.0 million euros, up 369 per cent on the corresponding period of last year. Second quarter net profit amounted to 52.6 million euros, a growth of 342 per cent on the 11.9 million euro profit in quarter two of 2009. Profits for the first two quarters total 72.6 million euros, an impressive 4,740 per cent increase on the 1.5 million euro profit reached in the first half of the 2009 fiscal year.
Continue ReadingMichelin Tops 2010 Online Brand Equity Tables
Michelin has topped Tyres & Accessories’ exclusive online brand prominence rankings for the sixth consecutive year, totting up a record high score as it went. In our second online brand equity measurement – sentiment – compiled in association with the artificial intelligence experts at Cambridge-based Envisional, Michelin won-out for the third year on the trot, demonstrating the firms continuing dominance in this field too. The Envisional analysis into online appearances or “mentions” of 17 major tyre brands, followed identical studies (looking at 12 of these brands) carried out in September 2005, August 2006, July 2007, October 2008 and September 2009. The major difference this time round is that the 2010 report also includes five up-and-coming brands produced in the Far East and while the data shows that they have a way to go before they will be giving their premium competitors a run for their money, certainly as far as online marketing is concerned.
Continue ReadingKumho Tires Enjoying 2nd Quarter in the Black
Following a less than optimal 2009 Kumho Tires has achieved positive results for the second consecutive quarter of this year. The South Korean manufacturer’s revenue increased 34 per cent year-on-year during the second quarter of 2010 to KRW 628.1 billion (£336.1 million), with operating profit reaching KRW 66.9 billion (£35.8 million) and an operating profit margin of 10.7 per cent. Net profit for the three months to June 30 was KRW 53.9 billion (£28.8 million), contrasting with a loss of KRW 113.2 billion a year earlier.
Continue ReadingHankook on Track to Achieve Planned European Market Growth
During the second quarter of 2010 Hankook Tire’s sales in Europe put the tyre maker in a good position to achieve its growth goals within the region. Year-on-year growth in the three months to June 30 was 17.8 per cent, with sales of products from its Dunaújváros plant in Hungary increasing 20.3 per cent year-on-year following a 17 per cent year-on-year growth in the first quarter.
Continue ReadingGajah Tunggal Profits Rise 188%
Indonesia’s largest tyre manufacturer, PT Gajah Tunggal Tbk, has reported a 188 per cent increase in net profit during the first half of the current financial year. During the six months to June 30, 2010, the company attained profits of Rp 415 billion (£29.3 million) on the back of revenues equalling Rp 4.8 trillion (£339.8 million), a 27 per cent year-on-year increase. Operating profit jumped 176 per cent to Rp668 billion (£47.3 million) due to a decrease in operating expenses.
Continue ReadingGoodyear “On the Right Path” in Second Quarter
According to company president and chief executive officer Richard J. Kramer, Goodyear “pulled the right levers” during the economic downturn and is thus well positioned for growth opportunities presented by the recovery. “During the second quarter, we achieved significant progress across all our businesses, driven by a combination of sales growth and cost actions,” said Kramer during a conference call on July 29. “Versus the comparable prior year period, sales were up 15 per cent, units up 10 per cent and segment operating income was $219 million, an improvement of more than $190 million from the second quarter 2009.”
Continue ReadingJune Growth Boosts Year to Date Global Market Figures
Figures released by Pirelli and Michelin show growth in on-road tyre markets across all global regions during June 2010. The Italian and French tyre makers respectively estimated growth in Europe’s OE passenger car tyre market to be nine per cent and 8.9 per cent during the month, with year to date growth in this segment given as 22 per cent and 25.2 per cent. For the European replacement segment, Pirelli and Michelin report June market growth to have been 11 per cent and 9.8 per cent respectively, with year to date growth figures exactly the same for both companies. Within Europe the OE truck tyre market is estimated by Pirelli to have grown 69 per cent year-on-year in June, while Michelin logs a 74.7 per cent growth for the month. Year to date growth is given as 30 per cent and 28.7 per cent. According to Pirelli European replacement market truck tyre sales grew 20 per cent in June, with Michelin providing a very similar figure of 19.7 per cent. Year to date, Pirelli and Michelin estimate growth in this segment to be 27 per cent and 28.7 per cent respectively.
Continue ReadingStapleton’s Confirms Pirelli CPK Purchase
Stapleton’s Tyre Services has confirmed that it has agreed terms with Pirelli Tyre UK to purchase its CPK Auto Products Ltd business. Asked what the strategic intention behind the firm’s latest acquisition is, Stapleton’s representatives said “Pirelli’s CPK strengthens Stapleton’s position as the UK’s number one tyre distributor” and said the move sees the tyre distribution specialist “expand its trade distribution operation enabling a further improvement in efficiencies and customer service” in an official statement. No details of the terms of the sale have been released. Commenting on the acquisition, Stapleton’s chief executive, Kenji Murai, said: “We are a growing business and this latest acquisition allows us to further improve our market position. Our aim is to provide excellent value for money alongside great customer service, across all our B2B sectors. This philosophy will be at the heart of everything we do.”
Continue ReadingApollo at the “Cusp of a New Dawn”, states Onkar Kanwar
The 2009-10 financial year was, for Apollo Tyres, a year in which the company “walked new geographies, met different people, mingled with various cultures, learnt new lessons, and have been amply rewarded for our keenness to explore newer pastures and challenges.” These words from company chairman Onkar S Kanwar describe a period of massive change for the tyre maker, a time of transition that has seen Apollo emerge as an entity operating on a global level.
Continue Reading‘Grizz’ Taylor Reports “Good” Q2 at Titan
The chairman and CEO of Titan International has described the second quarter as a “good quarter for a number of reasons. Maurice M. Taylor Jr, a man also known as “The Grizz” – a nickname presumably earned due to his business style rather than a fondness for bears – said “the numbers speak for themselves. If you look at the cash flow you will see that there is about an extra $1 million each quarter in depreciation and amortisation related to the new off-the-road equipment when compared to the same quarters in 2009.”
Continue ReadingConti “Well on its Way” with H1 Results
In the words of Continental AG’s Executive Board chairman Dr. Elmar Degenhart, the German tyre and automotive systems manufacturer “is well on its way to emerging from the crisis stronger than before.” In particular, the company’s EBIT has developed positively and the EBIT margin exceeded pre-crisis levels during the first half of 2010. “This is also however obvious from our balance sheet, which we have improved substantially since the beginning of the year with the capital increase and the equally successful placement of an initial bond, as announced,” Degenhart added. “With this basis, we are tackling the upcoming tasks brimming with confidence.”
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