Apollo still confident of global growth
In an interview with the Hindu Business Line, Apollo Tyres vice-chairman and managing director Neeraj Kanwar stated he expects to see more gains like those the company experienced in Europe during the second quarter of the financial year. “The trend will continue, Kanwar told the paper. “Already we are seeing good growth even in Q3. In fact, in Europe, Q3 will be much better than Q2, both on sales and profitability.”
Continue ReadingAnalysts: Nokian heavy tyre production cuts are warning to other tyremakers
Financial analysts have commented on Nokian’s plans to scale back its heavy tyre production, saying they are symptomatic of the macro-economic environment. Nokian announced the news of the 25 November, following a reported slowdown in orders for the first quarter of 2012. “While this is not huge news (Nokian expected weaknesses in 2012) it stresses how fragile demand is for the pro cyclical heavy and truck tyres is in a recessionary environment,” financial analysts from Morgan Stanley reported in an investor’s note published the day of the news.
Continue ReadingSchaeffler “on course” to meet 2011 targets
Schaeffler AG, major shareholder in tyre maker Continental, reports it has “remained on its course of success” during the third quarter of 2011. Based on business development during the first nine months of the year, the company says it is confident of meeting its full-year targets – Schaeffler expects to increase sales by more than ten per cent and its EBIT margin by more than 13 per cent in 2011.
Continue ReadingEuropean truck sector – the “relatively healthy” tyre market’s only ailment
Reuters and Marketwatch have reported comments made by Michelin managing partner Michel Rollier regarding the global tyre market’s general good shape. Reuters quoted Rollier, who was speaking on the sidelines of a Comité des Constructeurs Français d'Automobiles (French Automobile Manufacturers Committee) event, as saying “today, overall, we see a situation which remains relatively healthy with one exception, which is nonetheless a worry, namely the heavy truck tyre market in Europe.” Marketwatch reported that Rollier said the Chinese market remains “very robust” while North America “remains at a good level.” The managing partner however noted, added Marketwatch, that the outlook for 2012 “remains very uncertain.”
Continue ReadingFullChamp becomes a Ronal Group company
Wheel company Ronal reports that n October 2011 it signed a Memorandum of Understanding that integrates Taiwanese company FullChamp technologies Co. Ltd into the Ronal Group. FullChamp, which was founded in 2002, was already a Ronal production partner; the firm manufactures Ronal’s ‘Speedline Truck’ line of commercial vehicle wheels, a range developed by the Swiss company’s Italy-based subsidiary Speedline Truck S.r.l.
Continue ReadingProfumo resigns from Pirelli BoD
Pirelli & C. SpA has announced the resignation of Francesco Profumo from the company’s Board of Directors. Mr. Profumo submitted his resignation following his appointment as Italy’s Minister of Education, Universities and Research in the government being set up under new Prime Minister Mario Monti. In a statement, Pirelli said it “wishes to thank Mr. Profumo, an independent Board member and member of the Strategies Committee, for his valuable contribution.”
Continue ReadingDebica profits lower in Q3
In the third quarter of 2011 Polish tyre maker Debica S.A. reported sales of PLN 717 million (£138.6 million), a 38.9 per cent year-on-year increase. Operating profit in the July to September quarter rose 61.6 per cent year-on-year to PLN 59.9 million (£11.6 million) while net profit, at PLN 32.6 million (£6.3 million), was down 9.62 per cent compared with the third quarter of 2010.
Continue ReadingCZ Tire Holdings to acquire 26% Hangzhou Zhongce share
On 21 November, Hong Kong-based Bermuda corporation China Enterprises Limited announced it has entered into a definitive agreement to sell its share in tyre maker Hangzhou Zhongce Rubber Company to a company called CZ Tire Holdings Limited. According to China Enterprises, CZ Tire Holdings will pay RMB 600,000,000 (£59.6 million) for the 26 per cent share in Hangzhou Zhongce.
Continue ReadingPCL acquired by Horn Tecalemit
The management of Pneumatic Components Limited, or PCL, reports that Germany’s HORN GmbH & Co.KG (Horn Tecalemit) has acquired all shares in the Sheffield-based business for an undisclosed sum. This deal took effect on 1 October 2011 and although the two companies will continue to trade independently, PCL and Horn Tecalemit say the acquisition will give both firms “access to a wider range of complementary products” and benefit customers, suppliers and company employees.
Continue ReadingSchrader Electronics sale to fetch £550M?
The Telegraph reports engineering firm Tomkins plc is selling its Schrader Electronics Ltd. tyre pressure monitoring systems business for approximately £550 million. Tomkins has appointed Barclays Capital to manage the sale of the Northern Ireland based business; The Telegraphs states that Tomkins’ Sensors and Valves business, which is also located in Northern Ireland, is being sold along with Schrader. According to the newspaper, a “handful of private equity firms” have been approached regarding the sale.
Continue ReadingPirelli to set up Indonesian JV plant
Indonesian automotive component company PT Astra Otoparts Tbk has signed a Memorandum of Understanding with Pirelli to build a motorcycle tyre factory in a yet to be announced location in Indonesia. This plant, Pirelli’s first in the country, will focus on production to meet both local demand and for export to Asean and other global markets.
Continue ReadingFiege extends Bridgestone European Logistics
German company the Fiege Group, who handles logistics for Bridgestone in several European countries, reports it has begun supplying the Swiss market via cross-border distribution from its facility in Lahr, in southwest Germany. The assumption of Swiss distribution logistics has transformed the Fiege facility in Lahr from a national distribution warehouse into an internationally-operating distribution centre, the company adds. In co-operation with Bridgestone and the respective national customs authorities, Fiege says it has come up with a distribution solution than enables the daily supply of tyres within a standard transit time of 24 hours, as well as the organisation of the entire customs clearance for the transport of the goods from Germany to Switzerland.
Continue ReadingSumitomo 9-month income slightly down
For the nine months from 1 January to 30 January 2011, Sumitomo Rubber Industries has reported net sales of 467.6 billion yen (£3.8 billion), a year on year-increase of 10.1 per cent. Sales in the third quarter alone amounted to 167.9 billion yen (£1.4 billion). Operating income for the nine month period totaled 29.4 billion yen (£238.2 million), a 2.5 per cent year-on-year improvement, while operating income in the third quarter came to 9.6 billion yen (£77.8 million). Net income between January and September was 13.7 billion yen (£111.4 million, 2.2 per cent lower than in the corresponding period of 2010, while net income for the most recent quarter totaled 4.8 billion yen (£38.9 million).
Continue ReadingYokohama’s bottom line hit in H1 2011
Although enjoying an 8.4 per cent increase in sales to 258.2 billion yen (£2.1 billion) in the six months to September 30, 2011, Yokohama Rubber experienced a decline in both operating and net income during this period. The company says rising raw material costs, an appreciating yen and an increase in selling, general and administrative expenses were chiefly responsible for the decline in operating income, which fell 8.3 per cent to 7.6 billion yen (£61.2 million) year-on-year between April 1 and September 30. These factors in turn led to net income falling 75.8 per cent to 294 million yen (£2.4 million). Yokohama notes however, that its actual operating income figure was 26.7 per cent higher than its earlier projection of 6.0 billion yen, the better result being achieved thanks to increased product selling prices and cost cutting measures.Net sales during the second quarter of the current financial year, between July 1 and September 30, 2011, increased 6.6 per cent to 128.8 billion yen (£1.0 billion). In this three month period operating income actually increased by 45.7 per cent, to 3.4 billion yen (£27.8 million), however second quarter net loss grew substantially year-on-year, from 222 million yen to 2.5 billion yen (£20.4 million).
Continue ReadingMitas aims for greater prominence after UK name change
Mitas is aiming to raise the profile of the company and better communicate the strength of its products and recent sales performance in the market following the official rebranding of the UK company as Mitas Tyres Limited. With an impressive number of OE contracts under its belt, Mitas is aiming to grow market share in both the OE and replacement markets and solidify its position as “the UK’s leading off-road tyre specialist”, according to the company. And despite the fact that company is well-known for producing Continental branded agricultural tyres under licence, as you might imagine, a key part of this strategy is to highlight the Mitas name in the UK and beyond.
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