Despite positive H1 results, Apollo wary of slowing growth
Commenting on a half-year that saw the increase in Apollo Tyres’ net profit fall behind sales growth, company chairman and managing director Onkar Kanwar noted that “currency fluctuations, especially a weaker rupee, and continued cost push have impacted our bottom line.” Kanwar described the “near flat growth” in India’s commercial vehicle tyre segment during the first half of the country’s fiscal year as “worrying” and a situation that “could pose a challenge in the coming quarters.” The Apollo chairman said the company’s European business is currently registering strong growth, however his view of the region remains cautious: “We are alert to the broader economic situation there and are keeping a close watch on developments,” he stated.
Continue ReadingBridgestone Q3 punctuated by growth
Results for the third quarter of 2011 show across the board year-on-year improvements at Bridgestone. During the June to September period, the Japanese company achieved sales of 775.3 billion yen (£6.2 billion), a 9.9 per cent improvement over the same three months of 2010. Operating income reached 49.7 billion yen (£396.9 million) in the quarter, reflecting year-on-year growth of 42.4 per cent, while operating profit margin rose from 4.9 per cent to 6.4 per cent. Net income, at 27.8 billion yen (£222.0 million), was up 25.2 per cent compared with the third quarter of 2010.
Continue ReadingHankook share sale a boost for Michelin entry-level and medium production
In order to place a greater focus on its own production of tier two and three tyres, Michelin plans to sell its share in Hankook Tire Co. Ltd. The French tyre maker announced on November 8 its intention to sell up to 15,195,587 shares, an amount representing approximately 9.98 per cent of Hankook’s share capital, through its 100 per cent owned subsidiary Compagnie Financière Michelin. According to Michelin, the sale of its Hankook share forms part of its portfolio optimisation efforts in line with the new growth strategy the company first presented a year ago and reiterated during its October 2011 investor day, specifically the optimising and strengthening of factories dedicated to producing passenger car and truck tyres in the entry-level and medium-range segments.
Continue ReadingNokian gearing up for strong 2011 sales, operating profit growth
On the back of a 41.3 per cent year-on-year increase in net sales in the first nine months of 2011, Nokian Tyres retains its outlook that it is “positioned to provide strong sales growth and to improve operating profit clearly compared to 2010.” The Finnish tyre maker recorded group net sales of 974.3 million euros, up from 689.4 million euros between January and September 2010. During this same period operating profit doubled from 130.4 million to 261.0 million euros. Earnings per share also effectively doubled, from 0.85 euros to 1.66 euros per share. Net sales increased 41.2 per cent in the third quarter to 346.3 million euros, operating profit jumped 97.4 per cent to 95.4 million euros and earnings per share increased 122 per cent year-on-year to 0.60 euros per share.
Continue ReadingConti share price sinks, net income rockets in first 9 months of 2011
Upon publishing its results for the nine months to September 30, Continental states its expectation of annual sales reaching at least 29.5 billion euros remains unchanged. The tyre maker and automotive supplier also believes it can still achieve an adjusted EBIT margin of around ten per cent for the full year, however Executive Board chairman Dr. Elmar Degenhart concedes this “must meanwhile be viewed an an ambitious target owing to the higher-than-expected burden we are experiencing from raw material costs.” Yet these costs, Degenhart adds, should be “roughly offset” by the “very good utilisation” of Continental’s capacities, with strong order books aiding the company’s fortunes.
Continue ReadingBrisa 9-month revenues up 36%
Turkish tyre maker Brisa reports a 36 per cent year-on-year rise in revenues between January and September. In a statement released on October 30, the company disclosed it earned some TL942.5 million (₤329.8 million) during the nine-month period. Net profits rose 35 per cent year-on-year over the same timeframe, to approximately TL47,500 (₤16,600) while EBITA grew 41 per cent to TL114 million (₤39.9 million).
Continue ReadingPirelli to attract American investors through ADR programme
In order to diversify its shareholder base and attract a greater number of American investors, Pirelli & C. SpA is launching a Level 1 American Depositary Receipt (ADR) programme for the United States market. Pirelli has nominated J.P. Morgan as the depositary bank to manage the ADRs when the programme goes operational; this is expected to occur on or about 2 November 2011. Each Pirelli ADR (CUSIP 724256201) will correspond to one Pirelli & C. SpA ordinary share traded on the Milan stock exchange.
Continue ReadingUK wing mirror supplier moves into export market
The UK’s leading supplier of wing mirrors, based in Bury, Lancashire, is entering the export market, taking its product to numerous countries, including Australia, Brazil, Singapore, Japan, Malta, Norway and France. Wing Mirror Man started in January 2006 and provides new wing mirrors to the public and trade. It supplies mirrors suitable for 29 vehicle manufacturers, covering more than 500 car models, and in excess of 4,000 different types and makes of wing mirrors.
Continue ReadingSeptember continues car manufacturing growth
The Society of Motor Manufacturers and Traders has hailed September’s 7.4 per cent growth in vehicle manufacturing as showing that a positive trend is developing in the sector in the UK. Car manufacturing rose by 7.5 per cent in the month, making the first three-quarters of 2011 up 4.8 per cent over 2010’s. Commercial vehicle output rose by 6.2 per cent in September, but is still down 2.7 per cent over the January-September period.
Continue ReadingMark Griffiths joins Continental UK communications team
Continental Tyre Group Ltd has appointed Mark Griffiths as communications assistant to work alongside communications manager, Laura Hardy within this newly created role, covering all aspects of the brand’s public profile. Griffiths 24 recently returned from a year living in Paris teaching English. Before this, he studied for his BA Journalism degree in 2008 graduating with 1st class honours, going on to complete his MA in Automotive Journalism in 2010 with Merit.
Continue ReadingAnnunziato to replace Ohashi as Bridgestone Europe chief
As of 1 January, 2012, Makio “Mac” Ohashi will end his tenure as CEO and president of Bridgestone Europe NV/SA. He will be succeeded in this role by Franco Annunziato, who is now chief quality officer and senior vice-president – technology at Bridgestone Europe as well as managing director of Bridgestone Technical Center Europe S.p.A. After taking on Ohashi’s current duties, Annunziato will remain chief quality officer of Bridgestone Europe and managing director at the Technical Center Europe. Annunziato also serves as a vice-president and officer of Bridgestone Corporation.
Continue ReadingReport: 2010’s new car sales helped repair puncture in tyre market
Higher new vehicle registrations in 2010 helped to repair a price deflation puncture in the UK tyre and tube market in 2009. According to a new report published by Key Note, the tough economic conditions in 2009 resulted in the UK market value for tyres and tubes deflating by 8.4 per cent at manufacturers’ selling prices (msp). Their view is that a boost in new vehicle registrations in 2010 and inflationary price increases helped the apparent market undo this, growing by 12.6 per cent in 2010.
Continue ReadingHayes Lemmerz purchased by Brazil’s Iochpe-Maxion
Following an all-cash transaction valued at approximately US$725 million, wheel manufacturer Hayes Lemmerz International, Inc. has been acquired by Iochpe Holdings, LLC, a subsidiary of Brazilian automotive and railway wheel and chassis manufacturer Iochpe-Maxion S.A. The deal will combine Hayes Lemmerz’s global wheels business with that of Iochpe-Maxion.
Continue ReadingVenture provided £37.5 million for Unipart deal
Venture Finance provided a funding line of £37.5 million to finance H2 Equity Partner’s recent acquisition of a controlling stake in Unipart Automotive. And what’s more there is said to be “increased appetite for structured private equity deals.”
Continue ReadingEmerging markets, Tier 3 central to Michelin growth
At its most recent Investors Day, held at the company’s Cuneo site in Italy, Michelin confirmed its growth outlook for the coming decade. The French tyre major anticipates the global passenger car and light commercial vehicle tyre market reaching 1.5 billion units in 2015, a figure representing a 25 per cent growth on 2010 figures. Looking further ahead, an additional 20 per cent growth in the years between 2015 and 2020 is expected, with 1.8 billion tyres sold in this sector worldwide in 2020. Michelin notes that 70 per cent of this volume growth should occur in ‘new’ markets.
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