Pirelli Tyre Revenues Expected to Increase in Fourth Quarter
Pirelli & C SpA is scheduled to reports its fourth quarter results and 2010-11 guidance on March 10. Deutsche Bank Equity Research anticipates that in the fourth quarter Pirelli Tyre revenues should benefit from a volume increase (Deutsche Bank estimates a 15% increase) compared with decreases in the previous nine months, a negative price mix (a price mix of -2% versus +6.9% in Q1, +5.6% in Q2 and +4.7% in Q3) which Deutsche Bank believes has allowed Pirelli to gain market share on the continued discipline of manufacturers, and a 2 per cent positive foreign exchange impact. Furthermore, says Deutsche Bank, margins should benefit form low raw material prices, as the large price increases for these commodities took place in 2010.
Continue ReadingGITI Tire IPO Reportedly Near
Reuters reports that GITI Tire intends to launch a US$400 – 500 million initial public share offer in Hong Kong in the near future. The news agency states that a ‘source’ indicated Giti Tire plans to seek Hong Kong listing committee approval in the coming two weeks, aiming to list shares in April. The deal is, adds Reuters, sponsored by BofA Merrill Lynch and Credit Suisse.
Continue ReadingLiving and Breathing the Product
During the previous three years Alliance Tire has invested US$300 million in the company’s further development. This sizeable sum has been directed into several key projects. The highest profile of these, of course, has been last December’s acquisition of certain GPX assets, including the Galaxy and Primex OTR tyre brands. A specific focus has also been placed upon Alliance’s principal market of Europe: In December Alliance Tire Europe BV’s new headquarters was opened, and several weeks later Alliance Tire announced the appointment of a new president for the operation, former head of Goodyear industrial, farm and OTR tyre initiatives for the Middle East and Africa region, Manuel Pintado. Recently Tyres & Accessories paid Alliance Tire’s new European headquarters in Halsteren, the Netherlands a visit to hear Mr. Pintado’s views on Alliance’s recent activities and where the company plans to go from here.
Continue ReadingBridgestone is Most Recommended 4×4 Tyre Brand
The latest market research on which 4x4 tyre brands are most recommended to customers suggests that the theory that premium brands have been able to hold their share in the market are likely to be true. In the case of Bridgestone (the most recommended 4x4 tyre brand in the survey) this means the company’s tyres are recommended 18.02 per cent of the time, almost twice as much as the nearest competitor. The number two spot is held by Pirelli, whose tyres are recommended 10.4 per cent of the time. Together with Goodyear (9.92%); Michelin (7.2%); Avon (6.40%); Continental (5.92%); and Dunlop (2.48%), this means premium brands account for over 60 per cent of recommendations. Encircles’ data doesn’t report the specifics of conversion rates, but if the majority of these recommendations are converted into sales (something which is generally considered to be the case) then this premium-heavy metric would put the 4x4 sector way ahead of the passenger car sector as a whole which is considered to be comprised of about 30 per cent premium tyres.
Continue ReadingLanxess Adjusts 2009 Earnings Forecast
German specialty chemicals manufacturer Lanxess AG has adjusted its earnings forecast for the 2009 business year after preliminary unaudited results revealed what it calls a “significantly better than expected” fourth quarter. The company now expects to achieve pre-exceptional EBITA of 450-470 million euros for full year 2009 after previously forecasting 400-420 million euros upon the publication of the third quarter results in November 2009. LANXESS posted EBITDA pre-exceptionals of 721 million euros in 2008.
Continue ReadingBekaert Tyre Cord Capacity to Reach 700,000 Tons by Year’s End
Belgium steel cord manufacturer Bekaert states that capacity increases in China, India and Russia, and the planned integration of the tyre Bridgestone tyre cord plants (in Sardinia, Italy and in Huizhou, China) acquired earlier this year will lift the company’s total tyre cord capacity from its present level of 625,000 tons to an estimated 700,000 tons by the end of 2010. The bulk of this increase will occur in China, where capacity will rise from its current level of 350,000 tons to 400,000 tons.
Continue ReadingYokohama Aero Tyre Equipment Heading to UK Following DATL Acquisition
Testing and manufacturing equipment made available following Yokohama Rubber’s decision to withdraw from the aircraft tyre from the aircraft business has been acquired by Dunlop Aircraft Tyres. The Birmingham based manufacturer has signed an agreement to purchase several pieces of radial and crossply tyre manufacturing equipment including an additional dynamometer. These products should enable Dunlop Aircraft Tyres to expand manufacturing capacity and enable the company to offer new products, such as radial main tyres for the Boeing 777.
Continue ReadingCooper Announces Quarterly Dividend
Cooper Tire & Rubber has announced a quarterly dividend of 10.5 cents per share on common stock, payable March 31, 2010, to stockholders of record at the close of business March 2, 2010. This will mark the 152nd consecutive quarterly dividend paid by Cooper Tire & Rubber Company.
Continue ReadingPrices Up at Bridgestone Europe
Escalating raw material costs, particularly those for that most necessary of commodities, natural rubber, has prompted Bridgestone Europe to increase prices on all tyre products. The new pricing takes effect April 1 and while the increases will vary according to product category and market, tyres will on the most part become between three and five per cent more expensive.
Continue ReadingImproved Q4 Points to Growing Volumes for Rhodia Silcea
Rhodia Silcea has reported a 16 per cent drop in net sales volume during 2009 to 635 million euros, with the first half of the year marked by the global crisis and ensuing de-stocking in the automotive and several other sectors. By the second half, however, volumes began to recover, driven, says Rhodia, by demand in emerging markets and the dynamics of the automotive industry. During the fourth quarter of 2009, the business was able to report sequential volume recovery due to an improved business trend in all segments. Volumes increased by 19 per cent compared to the final quarter of 2008, to 177 million euros.
Continue ReadingDenman Tire Weighs Up Closure Option
Financially troubled US producer of specialty tyres, Denman Tire Corporation, has indicated it may shut down its operations if alternative arrangements cannot be made. In a company statement, Denman restructuring advisor Richard Szekelyi said “the company has reached the difficult decision to begin reducing operations while we continue our efforts to secure financing and/or find a buyer. If these efforts are unsuccessful, there will be no other alternative but to close all of the operations.”
Continue ReadingDespite Hard 2009, Conti Looks Toward Sales Growth This Year
Despite an overall upbeat tone, the word “crisis” has featured strongly during Continental AG’s reportage of its 2009 financial performance on February 23, a likely indication of the extent to which the German automotive supplier was affected by last year’s market downturn.
Continue ReadingBridgestone Reports 19% Fewer Tyre Sales during a “Challenging” 2009
Bridgestone Corporation reports that 2009 presented the company with a “challenging” operating environment due to weakened consumer spending and declines in private sector capital investment which counteracted signs of recovery among some exports. However, the Japanese manufacturer states that although the economic recession in Europe and the US continued, some sectors showed signs of stabilisation. A recovery in business climate was observed in China and despite challenging conditions, the business climate in other regions began to show slight signs of recovery. Against such a backdrop, the tyre major achieved net sales of 2,597.0 billion yen (₤18.3 billion), a 20 per cent decrease on the 2008 fiscal year. Operating income, at 75.7 billion yen (₤532.2 million) was 42 per cent down on the previous year and net income, at 1.0 billion yen (₤7.0 million), dropped 90 per cent from 2008. Additionally, during the year Bridgestone recognised as an extraordinary loss 10.6 billion yen (₤74.5 million) in costs linked to its plant closures in Oceania.
Continue ReadingNationwide Autocentre Purchase Brings Halfords Full Circle
The latest developments in Halford’s complex car servicing history (see Halfords Buys Nationwide Autocentres for £73.2 million – 18/02/10), bring with them a distinct sense of déjà-vous and highlight the cyclic nature of ownership in this industry. From Halfords point of view the latest venture represents a new beginning for a business that is radically different to when it last tried car servicing.
Continue ReadingYokohama Renews Sponsorship With Celtics, Spurs
As part of its 2010 marketing program, Yokohama Tire Corp. is sponsoring two of the NBA’s top teams – the Boston Celtics and San Antonio Spurs – for the third consecutive year, says Tire Review. “NBA basketball has enormous appeal in the US and globally,” said Shawn Denlein, Yokohama director of sales, consumer products, “and the championship-caliber Spurs and the Celtics are two of the league’s most popular teams. For Yokohama, the NBA is an excellent platform to showcase our world-class lineup of tyres, including ADVAN, S.drive, Parada, Geolandar, AVID – including the all-new AVID ENVigor – and the eco-friendly orange oil-infused dB Super E-spec. All the tie-ins we’re doing with the Spurs and Celtics will be slam dunks with our dealers and their customers in these markets.”
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