TBC Corp to acquire Midas for $310M
US-based company TBC Corporation, which calls itself the country’s largest marketer of tyres for the automotive replacement market, has acquired automotive service provider Midas for approximately US$310 million. The all-cash transaction will see Midas shares change hands for $11.50 each, a price that represents a 75 per cent premium over Midas’ closing price of $6.58 on 11 August 2011, when Midas announced it would conduct a strategic review process, and a 28 per cent premium over the closing share price as of 12 March 2012. The proposed transaction has been unanimously approved by both companies’ boards of directors. In addition, Midas chairman, president and CEO Alan Feldman has signed a tender and voting agreement in support of the offer.
Continue ReadingPoland – most likely site for Apollo’s new factory?
Speaking at the launch of the Aspire 4G high performance tyre in Geneva, Apollo Tyres Ltd chairman and managing director Onkar Singh Kanwar reiterated the tyre maker’s commitment to European consumers. “While European companies are looking east, your company, Apollo, is focusing on Europe, and Europe will remain central to our focus,” he stated. “We will keep investing in production facilities, in technology, development and product launches to ensure that the best and most effective products are brought to you. Apollo will accelerate its growth momentum over the years to come.”
Continue ReadingConti buys out Indian brake JV partner
Continental AG has acquired the 50 per cent share of its Indian brake joint venture (Rico Hydraulic Brakes India Ltd) belonging to Rico Auto Industries Limited. In buying out Rico Auto Conti has made Rico Hydraulic Brakes into a fully owned subsidiary of Continental. Since 2009 the plant in Gurgaon near New Delhi has been producing and supplying components for hydraulic brake systems to OEM customers in India. These include products and services consisting of calipers for front and rear axles, drum brakes, master cylinders, brake boosters and load sensing proportioning valves for all kind of passenger cars.
Continue ReadingHow much? Freight rates double
The world’s largest shipping company, Maersk, has just announced that its container line made a loss of US$537 million last year and is unlikely to turn a profit in 2012. The vast majority of its competitors have posted similar losses and it seems like they have now decreed that enough is enough and across the board rate increases have been announced. And we’re not talking single percentage point increases. Rather rates are said to be almost doubling their previous levels.
Continue ReadingMichelin confident of meeting ambitious objectives
In the last Michelin Annual and Sustainable Development Report that group managing partners Michel Rollier and Jean-Dominique Senard will jointly present, the two leaders of the French company commented on a 2011 punctuated by the start of the tyre maker’s new four-year business plan and rocketing commodity prices. For this year they share that growth is anticipated in emerging markets and North America, while Europe will most likely deliver more modest results. Rollier also expressed his “full and absolute” confidence in his successor, who is expected to take over sole leadership in May.
Continue ReadingInfinity releases lifestyle magazine
Infinity Tyres has announced that the company will publish a self-titled lifestyle magazine in a bid to communicate the multifaceted nature of the brand. According to the company, Infinity likes to think of itself as more than just a tyre brand.
Continue ReadingConti growth ‘sets new records’
Continental Corporation says its 2011 sales, operating results and net income results “set new records.” Reporting at the company’s annual financial press conference on 1 March, l CEO Dr. Elmar Degenhart said in 2011 Continental “grew nearly twice as much as the relevant markets in almost all business areas and generated a sales increase of 17 per cent to 30.5 billion euros. At the same time, our operating result (EBIT) increased twice as fast as sales to approximately 2.6 billion euros. We significantly improved our EBIT margin from 7.4 per cent in the previous year to 8.5 per cent. For the first time since 2006, all divisions were in the black again despite of the acquisition-related write-downs that will continue up to and including 2014.” He further reported adjusted EBIT (adjusted in particular for acquisition-related write-downs and special effects) of “a good 3 billion euros” and a margin of 10.1 per cent, figures exceeding the forecast issued at the start of 2010.
Continue ReadingHigh diesel prices are crippling hauliers says RHA
The Road Haulage Association's latest weekly fuel price survey - the most reliable guide to what hauliers actually pay for diesel deliveries to their depots - shows a national average price of 116.33 pence before VAT (139.60 after VAT).
Continue Reading2011 a ‘record year’ for Titan
Titan International has recorded a record fourth quarter and full-year 2011. The US firm says its year to date 2011 sales were the highest in company history and increased 69 per cent year-on-year to US$1.487 billion. Gross profit for 2011 amounted to $232.1 million, or 15.6 per cent of net sales, a year-on-year rise of 123.0 per cent. Net income for the year was $58.2 million, compared to a loss of $5.9 million during the 2010 financial year. Fourth quarter results tell a similar story: Sales during the three months to 31 December came to $402.9 million, up from $232.7 million in the fourth quarter of 2010. Income from operations increased from $16.2 million in the final quarter of 2010 to $58.5 million in the fourth quarter of last year.
Continue ReadingGoodyear to redeem $650m in senior notes
On 28 February Goodyear Tire & Rubber called for the redemption on 29 March 2012 of all its outstanding US$650 million 10.5 per cent senior unsecured notes due 2016. The redemption price will be 107.875 per cent of the principal amount being redeemed on the date of redemption, plus the interest payment amount scheduled for 15 May 2012 (less accrued and unpaid interest to 29 March 2012), computed using a discount rate equal to the yield of a comparable US Treasury security plus 0.50 per cent. In addition, holders will receive accrued and unpaid interest to 29 March 2012.
Continue ReadingSibur, Reliance JV to meet India’s synthetic rubber needs
The biggest petrochemical company in Russia and Eastern Europe has entered into a joint venture with India’s largest private company to produce butyl rubber. On 21 February Sibur and Reliance Industries Limited jointly announced their intention to establish a facility in Jamnagar, India capable of producing 100,000 tonnes of the substance per annum. The plant will be operated by the joint venture company Reliance Sibur Eleastomers Private Limited, which will be India’s first butyl rubber manufacturer and the world’s forth largest supplier.
Continue ReadingMarket share goal in sight: BKT aiming for 32% rise in production
Indian off-road tyre specialist BKT appears on track to reach its market share goal ahead of schedule. In a statement released on 17 February, company vice-chairman and managing director Arvind Poddar announced that due to current growth the tyre maker’s aim of becoming a global leader in off-highway tyre solutions with a ten per cent market share should be reached in 2014 rather than 2015.
Continue ReadingPirelli appoints Paolo Ferrari NAFTA region chairman, CEO
Pirelli has appointed Paolo Ferrari as chairman and chief executive officer of Pirelli’s NAFTA region. He will be tasked with driving the group’s growth and further strengthening its commitment to its US, Canadian and Mexican operations, according to a Pirelli statement. Matteo Battaini will focus on the role of NAFTA region chief operations officer.
Continue ReadingApollo sales up in Q3; margins remain under pressure
Net sales at Apollo Tyres increased 36 per cent year-on-year to Rs 32.28 billion (£404.75 million) in the third quarter of the 2011-12 financial year. In the three month period, which ended 31 December 2011, the tyre maker also achieved an operating profit of Rs 3.28 billion (£41.13 million), a rise of 18 per cent. Net profit, at Rs 980 million (£12.29 million), was 18.3 per cent down on the corresponding quarter a year earlier. Breaking net sales down by geographic region, the Indian tyre maker’s domestic operation generated revenue of Rs 20.93 billion (£262.43 million) during the quarter, up 46.2 per cent year-on-year, while European revenue rose 26 per cent to Rs 8.20 billion (£102.78 million) and South Africa revenue grew 28 per cent to Rs 3.83 billion (£48.04 million).
Continue ReadingMichelin’s Rollier to retire mid-year
In February 2011 Michel Rollier announced he didn’t intend to complete his current term of office as managing general partner and chairman of Michelin, as he would be 72 years old when his tenure ended. Rollier, now 67, has decided to retire from his current role this year and announced that at Michelin’s Annual Meeting on 11 May he will recommend shareholders accept that he leave office, effective that date. If shareholders agree, Jean-Dominique Senard, who was elected non-general managing partner in May 2007 and managing general partner last May, will succeed him as chairman from 11 May, 2012.
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