Pirelli reports 2003 year end results
The Pirelli Group has announced preliminary results for 2003 showing group revenues at 6,679 million Euro, down 0.6 per cent on the previous years 6,718 million Euro revenue. However, this still represented a growth of 7.2 per cent given comparable conditions. The operating income (EBIT) more than doubled to 266 million Euro and the Net debt was reduced to 1,755 million Euro, down by 300 million from the previous year. Overall the industrial operations staff numbers were reduced from 35,247 to 33,401 in 2003. Tyre sector sales accounted for 2,965 million Euro, an increase of 11.4 per cent; 7 per cent due to increased volume, the balance on prices and mix. Operating income from the tyre operation was 220 million Euro, an improvement of 15 per cent on the 2002 figure.
Continue ReadingBridgestone Corporation Reports Sales and Earnings for Fiscal 2003
The group recorded a 96 per cent increase in net income in 2003, to ¥88.7 billion (0.8 billion US dollars), on a 2 per cent increase in net sales, to 21.5 billion US dollars. Operating income was basically unchanged, at 1.7 billion US dollars, and ordinary income rose 13 per cent 1.6 billion US dollars. Net return on shareholders equity was 10.5 per cent, compared with 5.6 per cent in the previous year. Contrasting geographical trends characterized the operating environment. In Japan, economic recovery was weak. In the latter half of the year the weakening of the dollar affected Japanese exports adversely. Escalating costs for natural rubber and other raw materials undercut profitability in all principal markets throughout the year. Sales of tyres increased 2 per cent to 17.2 billion US dollars. However, operating income in the tyre segment declined 4 per cent to 1.4 billion US dollars. Sales in Europe rose 20 per cent to 2.7 billion US dollars, and operating income climbed 87 per cent to 0.14 billion US dollars, reflecting success in focusing sales on high-value products and the results of a financial restructuring in the previous year.
Continue ReadingBridgestone 2003 Profit Up
Bridgestone Corp. has declared its 2003 full-year profit rose 95.5 per cent but forecast a decline in 2004 as the strong yen, higher rubber costs and a fire-induced output cut threaten its bottom line. Group net profit for the year ended December 31 was 88.72 billion yen (829.1 million US dollars), compared with 45.38 billion yen the year before. Recurring profit increased 13.1 percent to 167.30 billion yen. The results were better than Bridgestones forecasts, which were revised down in September to account for the fallout from the fire at one of its major domestic plants. For this year, Bridgestone has forecast a recurring profit of 130 billion yen and net profit of 75 billion yen.
Continue ReadingCooper ups production at Findlay
Cooper Tire & Rubber Company plans to add capacity at its Findlay (Ohio) plant with an equipment investment of 1.8 million US dollars. The capacity will increase by 500,000 tyres annually and add at least 30 additional jobs in the Findlay production facility. Bill Woeste, vice president manufacturing, said, We expect this equipment to be in place and at full production levels by late summer, he concluded. In January, Cooper announced investments in its other three U.S. tyre plants; with Findlay added, the total investment is nearly 34 million US dollars and an added capacity of almost 3 million units annually.
Continue ReadingGoodyear Union: Claims contract violation
Goodyear Tire & Rubber Co.s largest union has said the companys plans to make new passenger tyres at a non-union plant may violate the terms of their contract. The United Steelworkers of America said it wants more information from Goodyear about the Assurance tyres being made in Lawton, Oklahoma. USWA claims that the contract, which froze wages in exchange for job security measures, requires that new products developed for sale in North America be made at unionised plants. The dispute could strain Goodyears relationship with the USWA, which represents 19,000 workers at 13 U.S. plants.
Continue ReadingTiger Wheels restructures
South African Tiger Wheels has reached agreement in principle to create a uniform global ownership and management structure for its original equipment manufacturer wheel businesses. Eddie Keizan, a joint chairman of Tiger Wheels, said that this would involve the alignment of the previously unequal shareholding of Tiger Wheels and the significant German minority shareholder in ATS and TSW Manufacturing, the wheel manufacturing plant in Babelegi near Pretoria. Tiger Wheels owns 100 percent of the Babelegi plant and 74 percent of ATS and the remaining plants, including those in Germany, Poland, the US. This unequal and differential shareholding had led to conflict and difficulties in the past. Keizan said that possibly the easiest way to resolve the difficulties caused by the differential shareholding was for the minority shareholder to buy 26 percent of the Babelegi operations so there was then equal shareholding in all the manufacturing operations. As a result of the agreement with ATS, Tiger Wheels has terminated negotiations on the possible disposal of its wheel manufacturing businesses.
Continue ReadingToyo Announces Tire Production in the United States
Toyo Tire & Rubber Co Ltd has announced its decision to build a new manufacturing plant in the United States for the production of passenger car and light truck tyres.
Continue ReadingBridgestone not talking with Amtel
Shigeo Watanabe, head of Bridgestone Corp., has categorically stated that the company was not discussing a production deal with Russias Amtel, which has threatened to dump partner Nokian Renkaat. Russian tyre maker Amtel told Reuters last week that relations between it and Finlands Nokian were frozen and their venture could end. Nokian, in which Bridgestone owns about 20 per cent, has said its 50-50 joint venture with Amtel was still intact. Amtel Vice President Anatoly Volnov, however, has stated Amtel and Bridgestone plan to produce a quarter of a million tyres this year under the Bridgestone brand at the Kirov plant.
Continue ReadingMichelin to import truck tyres to India
The Indian Government is to permit Michelin to import bus and truck radial tyres for wholesale trading on cash and carry basis until its joint venture with Apollo Tyres becomes operational. Michelin Apollo, 51 per cent owned by the French firm and 49 per cent by Apollo Tyres, will take about 20 months to begin production.
Continue ReadingBandag Acquired Majority Interest In Speedco
Bandag, Incorporated acquired an 87.5% majority interest in Speedco, Inc. from its founders and Shell Oil Products US. Bandag, a world leader in truck retread tires and tire management services, will operate Speedco as an independent business unit. Speedco, headquartered in Cayuga, IN, provides quickservice truck lubrication nationwide through 26 company-owned and six licensed on-highway locations.
Continue ReadingDaekyung signs up Cooper Tire & Rubber
Daekyung Chemical Corp. has agreed to a contract to Cooper Tire and Rubber Co.s automotive parts group. Cooper-Standard Automotive will help design and support engineering development for engine mounting systems for future Kia and and Hyundai vehicles.
Continue ReadingGoodyear reassured but not assured
UBS Wartburg downgraded the recommendation on Goodyear shares from neutral to reduce. Company stock, which hit a 52-week high of 10.74 US dollars four weeks ago, has tumbled in recent days. On Wednesday, even as officials were rallying the troops, the stock traded as low as 7.99, closing at 8.09 US dollars, down 27 cents.
Continue ReadingEC proposes cuts in carcinogenic oils in tyres
The European Commission has adopted a proposal to restrict the use of certain carcinogenic extender oils in the production of tyres. The measures should also help to ensure that a single market for tyres is maintained. Extender oils are used in the manufacture of tyres as softeners and can contain high levels of polycyclic aromatic hydrocarbons (PAHs), which can damage human health. The Commission proposes a maximum limit of 10 ppm for PAHs in extender oils used in the manufacture of tyres. Both the oil industry and the tyre industry have agreed to phase out the production and use of PAH-rich extender oils over a transition period of several years. The Commission will now work on the adoption of test methods to allow the identification of tyres that do not conform with the requirements of this Directive.
Continue ReadingThyssenKrupp to Manufacture Tyre Curing Presses in India
ThyssenKrupp Elastomertechnik has signed a further technical co-operation agreement with the Indian-based manufacturer, Alfred Herbert India. The agreement relates to the manufacture of the column curing presses, for the Indian market. Following the agreement signed in 1999 for the manufacture of the first frame-type hydraulic curing presses for India, the two companies are now moving into the area of advanced machine technology for the production of high-performance radial tyres and ultra-high-performance tyres. ThyssenKrupp Elastomertechniks Managing Director, Frank Horch, believes that India - particularly its tyre sector - will play an important part on the world market and for ThyssenKrupp Elastomertechnik in the coming years.
Continue ReadingSingle Tyre for F1?
Max Mosley, FIA president, is considering putting an end to F1s greatest present day battle, the tyre war, and having just one supplier for all of the teams because he believes it will allow the teams to reduce the number of hours spent testing, which in turn would cut the cost of competing in F1. He added, The greatest controllable waste of money in F1 is testing. If there was just one tyre supplier, you could simply say: No tyres for testing. And that would be the end of it. The teams, though, are already considering a proposal to cut the number of days spent testing.
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