Nexen Raises European Prices 7%
Nexen Europe GmbH has announced that it will implement a price increase of 7 per cent across its ranges of car, 4x4 and van summer tyres. According to the company, the price increases has been prompted by the continuing series of prices increases the manufacturer has itself experienced in the commodity markets and also in logistics, which account for “a significant portion of Nexen Tire’s costs.” The situation has reportedly been exacerbated by the “ever weakening euro against the dollar” due to the fact that raw material and logistics deals are generally settled in dollars.
Continue ReadingConti Adopts EMEA Name for Regional Distribution Network
Continental has adopted the now commonplace acronym ‘EMEA’ – Europe, Middle East and Africa – as the name of business formerly known as Car Tyre Aftermarket Sector Europe and Africa. This change of name is said to have taken place an organisational response to the company’s enlargement of its aftermarket importer and dealer network in the Middle East and Africa regions.
Continue ReadingGoodyear Seeing the Benefit’s of Last Year’s Actions – Kramer
“We are very pleased with our strong first quarter performance,” stated Goodyear’s recently appointed president and chief executive officer, Richard J. Kramer, upon the release of the company’s January 1 to March 31 results. The US tyre maker reports an improvement in tyre unit volumes, sales and segment operating income during the quarter, as well as a “significantly” smaller net loss despite a one-time charge related to the currency devaluation in Venezuela.
Continue ReadingWe’re Back on the Road to Success, Conti Shareholders Told
Addressing the company’s Annual Shareholders’ Meeting, held in Hannover, Germany on April 28, chairman of the Continental AG Executive Board, Dr. Elmar Degenhart, stated “if you wanted to summarise the year 2009, you could boil it down to a simple notion – state of emergency.” The major events affecting the market, he added, resulted in the most dramatic economic crisis in the post-war era.
Continue ReadingContinental Back in the Black in Q1
During the three months to March 31, Continental AG achieved sales of almost six billion euros, a 1.7 billion euro year-on-year increase. At 494 million euros, the company’s reported EBIT was more than 650 million euros higher than the comparative figure for the previous year’s quarter. From this total, sales from Conti’s Rubber Group accounted for 2.2 billion of the total, and reported group EBIT was 313 million euros.
Continue ReadingMichelin, Wheel Manufacturers Join Ford Key Supplier Network
Michelin and wheel manufacturers Hayes Lemmerz and Ronal are three of 13 new companies the Ford Motor Company has added to its Aligned Business Framework (ABF). The presence of the tyre and wheel manufacturers within Ford’s ABF brings the number of key component and service suppliers Ford has chosen for long-term relationships and closer collaboration to 90.
Continue ReadingTitan Increasing Activities in Canada, Mexico
Upon announcing Titan International’s first quarter 2010 results, company chairman and CEO Maurice M. Taylor Jr. spoke on the company’s direction during the year. “Titan plans to open a facility in Fort MacMurray, Alberta, Canada, by the end of third quarter this year to service our new mining customers, and we plan on embarking on a joint venture in Mexico this year for the distribution of all Titan products,” he stated.
Continue ReadingIFC to Invest in Apollo Greenfield Plant
The International Finance Corporation has agreed to partially finance Apollo Tyres’ new greenfield facility in Tamil Nadu, India. On April 22 the World Bank organisation stated that, pending the consent of its Board on May 26, it will furnish Apollo with a financial package of US$60 million. Phase 1 of the plant, located in Oragadam near Chennai, is nearing completion, and the commercial production of tyres there began in the first week of March 2010.
Continue ReadingConti Holds Ribbon Cutting Ceremony at California Distribution Centre
The Redlands, California distribution centre opened by Continental Tire the Americas earlier this year is now operating at full capacity, and to mark the occasion an official ribbon cutting ceremony and ‘open house’ was held on April 15. The 46,500 square metre warehouse consolidates the operations of two smaller California based warehouses, and provides Continental with enough space to store and distribute over 450,000 passenger car, light truck and commercial vehicle tyres. Conti estimates that two million tyres will be moved through the Redlands site each year.
Continue ReadingHankook Q1 Operating Profit Surges 501%
Results for the first quarter of 2010, released April 22, show Hankook Tire’s sales to have increased 17.6 per cent year-on-year to 1.3 trillion won (£780.4 million) and operating profit to have jumped 501.2 per cent to 212.2 billion won (£124.1 million). The tyre maker’s operating profit to sales ratio was 15.9 per cent, up from 12.6 per cent in the fourth quarter of 2009.
Continue ReadingHankook China Plant to Have 10M Unit Capacity
Plans for Hankook Tire to build a new factory in China were outlined on April 22; representatives of the South Korean manufacturer said the construction of a new facility there will aid Hankook’s efforts to consolidate its status as the leading international tyre manufacturer in China. The company also intends to increase its sales there by 15 per cent to US$1.21 billion this year.
Continue ReadingKumho Workers Accept Restructuring Proposal
In a vote held on April 21, unionised workers have accepted Kumho Tire’s proposed restructuring plan, including a cut in wages and bonuses. According to information published by the Wall Street Journal, the agreement paves the way for a 10 per cent reduction in salaries for 2010 and a further five per cent reduction before Kumho Tire’s exit from a debt-rescheduling programme in some two to three years’ time. In return, Kumho has withdrawn plans to lay off or outsource around 1,200 workers.
Continue ReadingPirelli Shareholders Approve 2009 Financials
During an ordinary session meeting held on April 21, Pirelli & C. SpA shareholders approved the company’s 2009 financial statements and agreed to the distribution of a dividend of 0.0145 euros per ordinary share and 0.0406 euros per savings share. The payment date will be 27 May 2010.
Continue ReadingAgri OE Sector Weakness Affect Trelleborg Tyre Sales
Speaking on Trelleborg AG’s performance during the first three months of the year, company president and CEO Peter Nilsson stated “the first quarter of 2010 is showing that we are building a stronger Trelleborg and that we are constantly moving towards growing and profitable segments The implemented action programmes continue to give positive effects and we are gradually growing in to a more efficient structure.”
Continue ReadingKumho Tires, Union Reach Agreement
An agreement between management at Kumho Tires and the union representing employees has finally been reached. The Korea Times states that on April 18, during the 26th round of negotiations, both parties found common ground on all major issues. As per the terms of this final agreement, the decision to lay-off 189 Kumho Tires workers has been revoked on the condition that employees submit written assurances regarding the adherence to company regulations. The Korea Times adds that a further plan to outsource 1,006 employees will be cancelled should the agreement gain worker approval when voted upon.
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