Gajah Tunggal profit grows 35% in first quarter
Indonesia’s Gajah Tunggal has reported a net profit of Rp 332 billion (£23.4 million) in the first quarter of 2011, a 35 per cent year-on-year and 182 per cent quarter-on-quarter increase. This result is “well above” Deutsche Bank’s consensus (the bank’s equity research analysts comments that it is equal to 40 per cent of consensus and 43 per cent of its full year 2011 forecast). Much of this growth was, however, from foreign exchange gains and associates. Core net profit, excluding foreign exchange and associates, was Rp 181 billion (£12.8 million) – relatively unchanged from the first quarter of 2010 and a quarter-on-quarter increase of 60 per cent.
Continue ReadingImproved core business gives Nokian a ‘flying start’ to 2011
The quarter one results released by Nokian Tyres plc on May 6 show the group’s net sales to have increased 57.3 per cent to 289.2 million euros in the three months to March 31, 2011 and profit up 211.1 per cent year-on-year to 62.4 million euros. For the rest of 2011, the Finnish tyre maker anticipates operating profit, which during the first quarter jumped 241.8 per cent year-on-year to 183.8 million euros, will “improve clearly” compared with 2010; this may be helped by a 30 per cent increase production capacity during the year, largely in its Russian plant. The challenge posed by raw material costs remains, however, and Nokian anticipates these will this year be 30 per cent higher than in 2010. To counter this, Nokian is preparing for “further tyre price increases during 2011.”
Continue ReadingQ1 puts Pirelli on track for 2011 sales of “above 5.85 billion euros”
Results for the first three months of the current financial year show Pirelli & C. SpA revenues increasing 23.4 per cent year-on-year to 1,401 million euros and a 43.3 per cent growth in the company’s gross operating result (EBITDA) to 203.4 million euros. The operating result (EBIT) before restructuring charges was 146.5 million euros, compared with 90.2 million euros in the first quarter of 2010, while EBIT after restructuring charges was 143.3 million euros, a year-on-year increase of 63.6 per cent. EBIT margin increased from 7.7 per cent in the first quarter of 2010 to 10.2 per cent.
Continue ReadingGoodyear reports record sales and a Q1 profit
Goodyear Tire & Rubber has reported record sales and higher unit volumes for the first quarter of 2011 – and a net profit for the quarter. The tyre maker’s first quarter 2011 net income was US$103 million, up from a net loss of $47 million for the same period in 2010.
Continue ReadingGoodyear 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.
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