Sale of Goodyear Latin America agri tyre business completed
The sale of Goodyear’s Latin America agricultural tyre business to Titan Tire was completed on April 1. Goodyear reports completing the sale for approximately US$99 million, subject to post-closing conditions and adjustments. The transaction includes the company’s Sao Paulo manufacturing plant, property, equipment and inventories and a licensing agreement that will allow Titan to sell Goodyear-brand agricultural tyres in Latin America and North America.
Continue ReadingBridgestone establishes sales company in Morocco
Exports of minerals and agricultural products are significantly growing in Morocco due to free trade agreements the North African country operates with the European Union and United States. On top of this, Morocco is actively establishing additional infrastructure along the Mediterranean Sea coast in the hope of becoming a major hub for the distribution of goods in and out of North Africa. For this reason, Bridgestone Middle East & Africa FZE (BSMEA) sees Morocco as a key region in which rapid economic expansion can be anticipated and has established a new tyre sales company based in Casablanca. The name of the new company is Bridgestone Tire Sales Morocco SARLAU (BTSM). Through the company, which began operation on April 1, BSMEA intends to further strengthen its business in Morocco's “highly promising” market by “increasing its ability to offer high quality products and services to the region.”
Continue ReadingGoodyear offers mandatory convertible preferred stock
On March 28, Goodyear Tire & Rubber announced a public offering of 8.7 million shares of its mandatory convertible preferred stock, with a price of US$50 a share. In addition, the underwriters have an option to purchase up to an additional 1.3 million shares of mandatory convertible preferred stock. The offering is expected to close on March 31, 2011, subject to customary closing conditions.
Continue ReadingConti completes final stage of VDO loan refinancing
The Continental Corporation reports it has successfully completed final stage of its “comprehensive refinancing programme.” On March 29, the automotive supplier agreed to new terms and conditions for its VDO loan for an original financing volume of 6.5 billion euros, maturing next year. The new package features a credit volume totalling six billion euros: One loan tranche of 625 million euros will mature in August 2012, a further tranche of 2.875 billion euros plus a revolving credit facility amounting to 2.5 billion euros have a term of three years. Financing will be provided by more than 35 banks; Continental states it was “significantly oversubscribed.”
Continue ReadingTrelleborg refinances through new syndicated loan
On March 24, Trelleborg AB and Trelleborg Treasury AB finalised a 750 million euro and US$625 million syndicated multicurrency revolving credit facility. The total volume of this new credit facility corresponds to some SEK 10.6 billion (£1.03 billion) and it is scheduled to mature in March 2016. The new credit facility replaces and refinances Trelleborg’s existing 750 million euro and US$600 million multicurrency revolving credit from 2005, which had an original final scheduled maturity date in March 2012.
Continue ReadingGajah Tunggal 2010 sales up 24% – Deutsche Bank
Indonesia’s PT Gajah Tunggal Tbk is expected to report its fiscal year 2010 results on March 26, 2011. Pre-empting the full release of the company’s financials, DB Equity Research Automotive reports the tyre maker achieved annual sales of Rp 9.9 trillion (£693.6 million), a 24 per cent year-on-year increase. This figure is, the Deutsche Bank analysts comment, three per cent above consensus and five per cent above Deutsche Bank estimates. Gross profit is reported to have increased six per cent year-on-year above 2009’s Rp 1.821 trillion (£127.6 million), implying a full-year gross margin of 17.9 per cent. This margin is, DB Equity Research Automotive notes, “much better than expected” given the steep (around 16 per cent) average increase in natural rubber prices in the fourth quarter of 2010 versus the average in the first nine months of the year.
Continue ReadingBridgestone a GM ‘Supplier of the Year’
Every year for the almost two decades General Motors has acknowledged its best global automotive suppliers at its Supplier of the Year awards. These awards recognise superior performance in four key areas, namely innovative quality, superior quality, outstanding launch support and competitive total enterprise cost. On twelve prior occasions Bridgestone Corporation has been bestowed an award, and at the 19th annual awards ceremony on March 10 thirteen proved to be a lucky number for the tyre maker – Takashi Urano, vice president and senior officer of Bridgestone Corporation, accepted the tyre maker’s thirteenth award on behalf of the company.
Continue ReadingDelticom announces “exceptionally strong” 2010 results
On March 23, Delticom reported another “extremely successful year.” The online tyre retailer says its fiscal revenues increased 34.8 per cent year-on-year in 2010 to 419.6 million euros, while EBIT rose 60.1 per cent to 47.1 million euros. Furthermore, the company’s 11.2 per cent EBIT margin reveals further growth in profitability. Whole year revenues for Delticom’s E-Commerce division increased 36.2 per cent year-on-year to 403.7 million euros, while Wholesale division revenues grew 7.6 per cent to 15.9 million euros. Other operating income increased 33.3 per cent in 2010 in line with revenues to 5.8 million euros.
Continue ReadingAnother Step Forward: Trelleborg explains rationale behind recent acquisitions
Recent months have seen a flurry of expansion and acquisition activity at Trelleborg Wheel Systems. First the company enhanced its position in the European solid tyre market through the acquisition of Watts’ industrial tyre business towards the end of 2010 (it was officially finalised during February 2011). Then came the acquisition of the pneumatic tyre production lines at the former Hebei Starbright plant, which the company bought from Maine Tire in the US. Most recently the company launched its TMBlue eco-concept range at the SIMA show in Paris at the end of February. Tyres & Accessories was on hand to hear further details about the thinking behind the recent developments and noticed a significant nod in the direction of further expansion in the emerging markets.
Continue ReadingRhein Chemie sales up 40% in 2010
In 2010 the Rhein Chemie Group achieved a 40 per cent year-on-year growth in sales; the wholly owned Lanxess subsidiary says its 283 million euro sales for the year outstrip those of the “record” year 2008. “We can clearly see that the rigorous implementation of our growth strategy is bearing fruit,” stated Dr. Anno Borkowsky, CEO and president of Rhein Chemie Rheinau GmbH. “In Germany, we increased sales by 30 per cent while in Asia growth was even stronger.”
Continue ReadingEmerging market interest in value-generating products key to expansion – Trelleborg
Emerging markets such as the BRIC countries are expected to drive growth for Trelleborg Wheel Systems over the next few years. In the Trelleborg Group’s 2010 annual report, Maurizio Vischi, president of the business area responsible for producing industrial and agricultural tyres, said “emerging markets as Brazil, China and Russia have begun to show more interest in high-tech products and products that generate value. This provides significant expansion potential through greater presence in these markets.” Vischi admitted that that Trelleborg expects only “restricted” growth in Western Europe and North America, where the business area already counts as “one of the principal players.”
Continue ReadingNokian 2010 annual report released
Nokian Tyres has released its annual report for 2010, a year in which, said CEO Kim Gran, “demand, sales and profitability saw a clear positive turn.” Order intake in the company’s core Nordic and Russian markets experienced “rapid growth” in the second quarter, Gran added, while Nokian was “delighted by the strong growth seen in the sales and profitability of our Central and Eastern European operations.” In the annual report the Finnish tyre maker stated its key strategic objectives into the year 2015, including Nordic market leadership as a tyre manufacturer and distributor plus the leading manufacturer and distributor of premium car tyres in Russia and the CIS as well as one of the top suppliers of special heavy tyres in this region.
Continue ReadingLanxess net income up tenfold in 2010
Demand for synthetic rubbers from tyre industry customers proved a strong driver of growth for Lanxess last year. The German specialty chemicals company describes its 2010 results as “outstanding” and believes its performance was aided by the company’s strategic set-up and a general business recovery. Announcing the firm’s annual results at its annual press conference on March 17, Lanxess chief executive officer Axel C. Heitmann said the company’s “growth story is set to continue” following last year and an “excellent” start to 2011.
Continue ReadingPirelli admitted into John Deere Hall of Fame
The ‘hall of fame’ is a uniquely American way of showing esteem to a person or company; typically, only those who display exceptional skill or merit in their specialty area are admitted. It is thus with pride that Pirelli has announced its Agro business unit has been admitted into the John Deere Hall of Fame.
Continue ReadingStapleton’s Confirms NETE Purchase
Stapleton’s Tyre Services has officially confirmed that on 28 February 2011 it acquired all the shares of North Eastern Tyre & Exhaust Limited (NETE). However, an official statement issued by the company reported that NETE will continue to trade as a wholly-owned subsidiary of Stapleton’s Tyre Services. Stapleton’s representatives said the company intends to complement NETE’s “professional approach to the market and their excellent customer service in order to ensure the future success of both companies.” No further details of the price or the terms have yet been released.
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