Goodyear 2009 Performance “Impressive” Despite Downturn – Keegan
Describing the company’s fourth quarter 2009 results as “solid”, Goodyear Tire & Rubber chairman and CEO Robert J. Keegan described the improved gross margins, segment operating income and net income achieved as a “reflection of the success we had in strengthening our business despite a challenging economy and operating environment.” However this chirpy final quarter was not enough to deliver sales above those achieved in 2008, and an annual net loss of $375 million was recorded, as opposed to a loss of $75 million a year earlier.
Continue ReadingOnline Retailer Popgom Reports 7.3 Million Euro Turnover
Online tyre retailer Popgom was founded in France in 2008 by Christophe Tesseraud, previously European CIO at Michelin. The tyre major is a minority (approximately one-third) shareholder in the business behind Popgom, Tyredating SAS, and today the firm operates retail tyre portals in France, Spain and Germany. Company representatives claim that a site catering to the UK market will be established in 2010.
Continue ReadingHalfords Buys Nationwide Autocentres for £73.2 million
Halfords Group has bought Nationwide Autocentres in a £73.2 million deal, which managers described as the next “logical step” in its expansion plans. Nationwide, which has been owned by private equity group Phoenix since 2006, employs 900 mechanics and serves roughly 500,000 customers a year. Nationwide offers customers and fleets MOTs, servicing and repairs, but also recently increased the emphasis on tyres at its 224 outlets.
Continue ReadingTrelleborg Wheel Systems Sales Down for 2009
Trelleborg AB reports that its Trelleborg Wheel Systems division achieved net sales of SEK 2,991 million (₤263.6 million) during the previous financial year, a decrease of 19.3 per cent on its 2008 result. In releasing its figures for January to December, the Swedish manufacturer notes “organic sales declined 26 per cent, exchange-rate effects were 7 per cent and structural changes 0 per cent. Net sales are lower as a result of a significant decrease in demand for industrial tyres and lower agricultural-tyre sales. Demand for agricultural tyres showed some variation in the various sub-segments, where the trend for large dimensions was better in relative terms, but demand for this product group also fell toward year-end.”
Continue ReadingThe ‘Russian Period’ an Emotional Time, Reflects Apollo Vredestein CEO
Speaking on the termination of Vredestein’s five-year connection with Russia’s Amtel in 2009, Apollo Vredestein BV CEO Rob Oudshoorn has admitted in a company publication that “everyone at Vredestein let out a collective sigh of relief” when the cooperation finally ended. Apollo Tyres’ acquisition of Vredestein Banden BV was concluded last May following a prolonged period of financial difficulty for parent company Amtel-Vredestein N.V., and expectations remain high that the Indian company will inject fresh life into its Dutch subsidiary.
Continue ReadingSumitomo Reports Ninefold Increase in Net Income
Sumitomo Rubber Industries’ consolidated financial results for the year ended December 31, 2009 show the company to have earned net sales of 524,534 million yen (₤3.71 billion) during the year, a decrease of 13.3 per cent on the previous year. From this, the company’s total tyre segment sales amounted to 433,471 million yen (₤3.07 billion), or 82.64 per cent of all sales. Company operating income, at 28,738 million yen (₤203.40 million), was 12 per cent higher than during the 2008 financial year, while net income, at 9,093 million yen (₤64.36 million), was some nine times greater than the previous year’s result.
Continue ReadingBridgestone Revises 2009 Financial Projections
A number of revisions to Bridgestone Corporation’s consolidated financial projections for 2009 have been announced. Changes to the figures released on November 5, 2009 have been based upon recent performance trends and the company’s assessment of the global economy during the year. After reviewing these two factors, on February 12 Bridgestone announced a revised projected operating income of 75,000 million yen (₤533.9 million), 15,000 million yen higher than its November 5 figure. Ordinary income has been upwardly revised from 29,000 million yen to 54,000 million yen (₤384.5 million) and net income has been revised from a loss of 10,000 million yen to a profit of 1,000 million yen (₤7.1 million). Projected net sales, at 2,590,000 million yen (₤18.4 billion), remain unchanged.
Continue ReadingMichelin “More Agile Than Ever” – 2009 Financial Results
Despite recording a net income 70.9 per cent lower than that of the previous year, Michelin managing general partner Michel Rollier appeared satisfied enough with the company’s 2009 financial results to comment that “in an environment shaped by a historic decline in tyre demand, especially in mature economies, Michelin was able to respond quickly and more agilely than ever. Thanks to the dedicated commitment of our teams and tight management, Michelin has delivered robust performance and improved its major financial metrics, the foundations of its future growth.”
Continue ReadingPirelli Negotiated the Crisis Year Well
During the global recession and financial crisis of 2009, tyre manufacturer Pirelli negotiated the challenges thrown at it better than expected and in doing so proved it is what many companies only claim to be: a storm-proof edifice. With its world-renowned Pirelli premium brand, the Italian tyre business retains its pattern of growth.
Continue ReadingNokian Reports “Satisfactory Results” for 2009
Upon the release of his company’s annual figures, Nokian Tyres president and CEO Kim Gran commented that “eventually, after taking decisive action in a tough market, we achieved quite satisfactory results in 2009.” This action, which included cutting investments by 94.7 million euros and wages and salaries by 44.6 million, helped the company achieve an annual net profit of 58.3 million euros, a figure that is, coincidentally, 58.3 per cent lower than the company’s 2008 profit. Net sales for January to December 2009 amounted to 798.5 million euros, 26.1 per cent less than a year earlier. Operating profit was 102.0 million euros compared with 247.0 million for the 2008 financial year.
Continue ReadingDunlop Aircraft Tyres Signs First China Agreement
A three-year deal for the supply of bias tyres will see Taiwan based Mandarin Airlines become the first customer to utilise Dunlop Aircraft tyres’ new distribution and retreading facility in China. Dunlop Taikoo (Jinjiang) Aircraft Tyres Company Limited will supply tyres for the airline’s fleet of eight E-190/195 twin-engine medium range jets.
Continue ReadingYokohama Net Income Rises Markedly
Yokohama Rubber has reported earning a net income of 9.0 billion yen (₤62.1 million) in the first three quarters of the present fiscal year, the nine months to December 31, 2009. That compares with net income of just 222 million yen in the same period of the previous fiscal year. Underlying the rebound in net income, the company explains, was a 0.1 per cent increase in operating income, to 17.3 billion yen (₤119.5 million). The improvement in profitability occurred despite a 16.2 per cent decline in net sales, to 344.0 billion yen (₤2.4 billion), and reflected a downward trend in raw material prices, reductions in selling and other expenses, and smaller losses on currency translation.
Continue ReadingPirelli Negotiated the Crisis Year Well – Holds Potential for Further Growth
During the global recession and financial crisis of 2009, tyre manufacturer Pirelli negotiated the challenges thrown at it better than expected and in doing so proved it is what many companies only claim to be: a storm-proof edifice. A crucial factor in this was its very solid manufacturing network. In Europe the output from factories in Italy and other West European sites are supplemented by deliveries from Romania and Turkey. North and Latin America are largely supplied with products from Brazil, and in China Pirelli erected a truck tyre plant and subsequently established site a passenger car tyre facility at the same site.
Continue ReadingGoodyear Announces Exchange Offer
On February 2 Goodyear Tire & Rubber commenced an offer to exchange any and all of its US$650 million in aggregate principal amount of 7.857 per cent notes due in 2011 (“old notes”) for a new series of 8.75% notes due in 2020 (“new notes”). Concurrent with the exchange offer, Goodyear is soliciting consents from the holders of the old notes to amend the terms of the indenture that governs the old notes. The proposed amendments, if adopted, would delete many of the restrictive covenants and certain events of default in the indenture governing the old notes.
Continue ReadingBridgestone Holding Onto All Long-Term Goals
In 2009 Japan’s Bridgestone Corporation posted its first loss since 1931. The financial crisis and recession had strongly impacted upon the previously profitable Japanese home market and triggered the company’s implementation of a number of restructuring measures, notably in Oceania, where the closing of its plants in New Zealand and Australia closed the book on new tyre production in both countries. Furthermore, at the end of the current season the tyre major’s 14-year association with Formula One will come to an end. The decisive factor behind this decision was the cost and the exit of Toyota and Honda from the series, yet it can also be said that the company’s goal – increasing the Bridgestone brand’s recognition and profile – has already been reached. In this respect, remaining with Formula One would not deliver very much more and thus cannot be justified in terms of the enormous costs involved. Ecclestone & Co. also may have done nobody a favour when they decided to go with a sole tyre supplier, thereby eliminating any competitiveness from the equation.
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