Raw Material Costs Prompt Apollo to Consider Further International Investments
Upon announcing Apollo Tyres Ltd’s results for the second quarter and first half of the current Indian financial year, company chairman Onkar S Kanwar commented “it’s been a very difficult six months managing the unprecedented rise in natural rubber prices.” This is perhaps an understatement; Kanwar noted the company’s natural rubber costs have risen 70 per cent in the last year and 150 per cent in the space of two years – a significant amount, considering the commodity accounts for 60 per cent of Apollo’s raw material costs. “This has affected all aspects of our operation.” Kanwar added. “I do hope the Government will look at some measure to check speculation, as well as bring down the unreal duty structure we have.”
Continue ReadingToyo Increases European Tyre Sales 12% in H1, 2010
Toyo Tire & Rubber reports a global 9.0 per cent increase in tyre sales volumes during the first half of the 2010 financial year, with European sales volumes surging 12.0 per cent. In total, the company produced 88,900 tonnes of tyres during this six-month period until September 30, 76,200 of this in Japan. Net sales within the half-year reached 143,431 million yen (£1.1 billion), 10.7 per cent above the corresponding six months of 2009. This improvement, Toyo notes, has occurred due to a recovery in demand. During the quarter between July 1 and September 30 Toyo reported net sales of 71,269 million yen (£546,4 million).
Continue ReadingTitan 3Q Results “Better Than Expected”
Sales at Titan International amounted to US$222.8 million during the third quarter of the 2010 financial year, representing a year-on-year increase of 57 per cent. This improved result was accompanied by a gross profit of $27.9 million and a net income of $4.0 million. Year-to-date, the company’s sales have increased 12 per cent year-on-year to $648.9 million, while net income has reached $10.8 million.
Continue ReadingBridgestone Reports 12% Sales Increase
The first three quarters of the 2010 fiscal year have been described by Bridgestone as a period “plagued by rising raw materials and materials prices and the appreciating Japanese yen.” Despite these hurdles, the tyre maker reports achieving a 12 per cent increase in net sales and 838 per cent rise in operating income during this time, having reached figures of 2,091.2 billion yen (£15.9 billion) and 113.4 billion yen (£861.5 million) respectively. Ordinary income for the nine months was 100.8 billion yen (£765.7 million) and net income 66.7 billion yen (£506.7 million), compared with an ordinary loss of 9.2 billion yen and net loss of 27.4 billion yen for the corresponding period a year earlier.
Continue ReadingBroadway Tyres Enters Administration
High Wycombe-based wholesaler Broadway Tyres entered administration yesterday (4 November) after being officially declared insolvent the day before. The company is understood to have faced cashflow problems related to significant debts. Bearing in mind the fact that Broadway is a member of the 13-company Grouptyre operation, what affect is the move is likely to be on Grouptyre in general and Broadway’s customers in particular? A source close to Grouptyre told Tyres & Accessories that customers won’t notice any disruption in either service or supply as the collective is working closely with both Broadway and the administrators to ensure it is “business as usual” for customers. The source also suggested that Grouptyre will be continue to honour its supply agreements post-administration whatever the outcome of this period is.
Continue ReadingEmpowerment Management: T&A talks to New Goodyear Dunlop UK MD
When Goodyear Dunlop Tires Europe said it had appointed George Rietbergen as managing director UK and Ireland in March, the announcement meant the Dutchman would become the operation’s third managing director since 2004. During that time significant changes have taken place in the company’s UK and Eire operations including the separation of HiQ in a hard franchised passenger car only retail operation and a Truck Force network; the adoption of multi-brand and multi-company distribution strategy via outsourced third party logistics (namely Norbert Dentressangle) and a significant number and scope of personnel changes. Set against this backdrop you could be forgiven for expecting more upheaval, but as Tyres & Accessories recently found out in an exclusive interview with the new MD, he brings with him a refreshingly up-front Hollandic approach and an understated management style that puts the emphasis on the departmental heads and middle managers rather than “the man at the top.”
Continue ReadingUS Yokohama Tyre Prices Rise
Yokohama has announced that it will raise its North American passenger and light truck tyre prices by 8 per cent on 1 December. The increasing raw materials, manufacturing and logistics costs are cited as the reasons behind the price hike.
Continue ReadingToyo to Acquire Malaysian Tyre Manufacturer
Toyo Tire & Rubber has announced its decision to acquire all shares in Malaysia-based tyre manufacturer Silverstone Berhad. The company’s board of directors says it has a stock purchase agreement with Silverstone’s sole shareholder, Silverstone Corporation Berhad. According to the company’s statement, Toyo’s acquisition of Silverstone puts it in position “to make a full-scale entry into the fast-growing Southeast Asia market.” The stock transfer to Toyo from Silverstone Corporation Berhad is scheduled to take place in late January 2010 and will cost Toyo approximately 12,538 million yen (£98 million).
Continue ReadingInfinity Tyres Raises Record Sum for BEN at NTDA Dinner
The recent NTDA annual dinner held in Manchester saw Infinity Tyres donate two return air tickets from London to Dubai (home of the Al Dobowi Group– owners of the Infinity brand). The tickets were auctioned by Peter Gaster, former NTDA chairman and raised £1600 for the BEN charity, which is reportedly a record for the event.
Continue ReadingMartin West to Head New Sailun Europe Operation
Qingdao, China-based tyre manufacturer Sailun Co., Ltd., has appointed Martin West as managing director of its new Sailun Tyres (Europe) subsidiary. West previously held a number of senior roles with Goodyear, Lassa and most recently Infinity. Tyres & Accessories understands that the new European team, which will be based in the UK, currently consists of two people including the recent appointment of a back office manager that brings with him logistics experience at Goodyear Dunlop. According to a statement released by Sailun Europe, the recent moves follow the firm’s decision to begin “strategically focussing to further develop their presence in the European market.”
Continue ReadingBridgestone Sales Companies Gain ISO Certification
Bridgestone Europe’s group of 18 national sales companies has been accredited to the revised standard ISO 9001:2008 by Lloyd’s Register Quality Assurance. Announcing the accreditation, Bridgestone Europe’s senior vice president of Sales & Marketing, Takashi Tomioka, commented: “ISO 9001 is an important standard which we have held since 1992. Ensuring that our sales companies operate to these stringent requirements provides a systematic and visible way to lead and operate our sales organisations. This allows us to focus on meeting our customers’ expectations through consistent products and services”.
Continue ReadingPirelli Ups 2010 Targets
A review of preliminary financial data for the nine months ended September 30, 2010 has led the Pirelli & C. SpA Board of Directors to upwardly revise 2010 targets. The Board’s October 14 review of the preliminary data was made in view of the company’s new 2011-2013 three-year plan, and Pirelli says that the “positive performance of Pirelli Tyre in the first nine months of the year and the present market context permit a further upward revision of 2010 targets.” Targets had previously been raised when the first quarter and first half results were announced.
Continue ReadingETRMA Pushes EU for Closer Monitoring of Tyre Imports
At its October 5 board meeting in Brussels, the European Tyre and Rubber Manufacturers’ Association determined and conveyed to the European Union authorities that a greater monitoring of tyre imports is necessary in order to guarantee high quality tyres for EU consumers, increased road safety and lower environmental impact. ETRMA members, which represent Europe’s tyre producers, also reaffirmed their commitment to a “long-term strategic compliance campaign, stressing the importance of the quality and maintenance of tyres.”
Continue ReadingTitan Announces Final Results of Tender Offer
Titan International reports that at the expiration time for its eight per cent senior unsecured notes offer on October 1, 99.2 per cent of the outstanding principal amount had been validly tendered – a sum totalling US$138,884,000. The company accepted and paid for $138,874,000 aggregate principal amount of its senior notes, as per a previously announced early settlement election, and subsequently accepted for purchase and paid for an additional $10,000 principal amount of senior notes that were tendered on or prior to the expiration time.
Continue ReadingApollo: 30% Increase in Exports to Europe Planned
At present Apollo Tyres exports 50,000 Apollo branded tyres a month to Europe from its factory in Vadodara, India, yet company ‘sources’ claim this quantity will increase markedly in the coming months. According to Indian financial journal the Hindu Business Line, sources expect a 30 per cent increase in the monthly shipment of tyres to Europe, with 65,000 units a month arriving here by March- April 2011.
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