Good EBIT Margin From Michelin
The tyre giant Michelin has today released more figures. The EBIT margin reached 7.6 % on a turnover of 15.4 billion Euro. Michelin reached this expected good result in spite of the fact that increases in raw material costs ate into the results over the year at many other tyre manufacturers. The truck division, which accounts for about 27 % of the total turnover, confirmed excellent double digit EBIT margins. For this year it is expected that Michelin will again achieve at least the same level of results as it did last year. But there is hope that oil prices are falling, which could give the company even better margins. The net debts stood at 4.9 billion Euro at the end of the year 2000.
Continue ReadingNew E-Commerce Products From Continental
The tyre industry is faced with a new method of doing business: e-commerce. Continental has developed a new product that enables smaller customers to check stock availability and order product at a time to suit him. Called ContiContact, it is essentially an electronic catalogue giving information on product and prices in real time and is available to any dealer who has a PC and a modem. ContiContact is designed to complement, not replace, traditional methods of ordering and Continental will continue with its EDI and call centre operations; the new service is part of Continentals desire to be known as a company that is easy to do business with. It has been on trial with selected customers for a year and is now ready to roll out to a wider customer base. Continental has also introduced e-billing, which allows customers with internet access to log on to a website where they can view or download their invoices. The advantages are space and time saving (Continental can archive invoices for customers if required) and less chance of mistakes, lost invoices etc. The system is totally secure and records are stored electronically at two separate locations, in case of accidents.
Continue Reading$60 Million Investment For Nizhnekamskshina
Russias leading tyre manufacturer, Nizhnekamskshina, is to boost capacity by 2 million steel belted radial car tyres by 2002. There are also plans to create new truck tyre lines by 2003, to produce 17.5, 21.5 and 22.5 truck tyres for the domestic market. The $60 million investment is being supplied by a major Russian oil company and will see car tyre production rise to 7 million units, though overall output will remain at around 12 million.
Continue ReadingJCB Award For Bridgestone/Firestone UK
Bridgestone/Firestone UK (BFUK) has been presented with a 2000 Supplier Award by JCB, one of only five companies to receive awards and the only tyre company to be nominated. The award was given for supply service, product quality, innovation and cost reduction. John Patterson, JCBs CO, presented the trophy to Jim Wilson, MD of BFUK, at the JCB Suppliers Conference.
Continue ReadingFirst Quarter results From Hayes Lemmerz
Hayes Lemmerz International Inc. (NYSE:HAZ) has announced results for the first quarter – ended April 30 2001. Sales were down on the previous first quarter, from $595 million to $541 million, but showed an increase on the $475 million from the fourth quarter of 2000. Diluted earnings per share was a loss of $(0.27), against earnings of $0.51 in the first quarter last year. This compares to a loss of $(0.58) for the fourth quarter of 2000.
Continue ReadingFurther Firestone Recall By Ford
Ford has announced that it will replace up to 13 million Firestone tyres fitted to Ford Explorer SUVs. This is double the number of tyres recalled last year and the cost to Ford will be around $3 billion, with the exercise taking nine months. It was this decision which precipitated the announcement from Bridgestone/Firestone that it would sever all ties with Ford; an announcement which caused Bridgestone shares in Tokyo to fall by over 9 per cent.
Continue ReadingFactory Closure And Reduced Profits For Bridgestone Corp.
At a press conference, Bridgestone President Shigeo Watanabe revealed that the company was to close its plant at Decatur, Illinois, where 1,500 people are employed. The plant closure will lead to a loss of $210 million, offset to some extent by cost savings of $100 million. Bridgestone will also incur an additional special loss this year, amounting to $549.6 million and the group has revised its worldwide consolidated net profit forecast from 48 billion Yen to 10 billion. For Bridgestone Japan, the company is predicting a net loss of 130 billion Yen for the calendar year 2001, the first loss for the group since it was first listed on the Tokyo Stock Exchange in 1961. Bridgestones shares fell nearly 2 per cent on the news, to stand at 1,273 Yen.
Continue ReadingHow Easy Is It To Buy On-Line?
The Internet, we are told, will revolutionise our working and private lives. Many companies trumpet the fact that they have websites, but what happens if you want to purchase a tyre over the Internet? Our article sets out to do just that, with mixed results. Some companies were easier to find than others, while the ease of ordering tyres on-line varied considerably. Some of our findings might surprise you.
Continue ReadingCourt Decision Welcomed By Ford And Firestone
In the US, a federal judge turned down lawyers requests to order a recall of Ford Explorers and Firestone tyres. The judge ruled that only the National Highway Traffic Safety Administration has the authority to order such a recall. Bridgestone/Firestone has already indicated that it would fight any such order from the NHTSA in the courts. In a rare moment of unanimity, both Ford and BF Inc. welcomed the judges decision.
Continue ReadingNew Forest Tyre by Nokian
Finnish tyre manufacturer Nokian is expanding its range of forest tyres with the new Forest King E, which is designed to meet the demands of the OE- and aftermarket segments. The tyre has been developed for forest machinery up to a maximum weight of 14 tons and is available in sizes 700/45-22.5, 600/55 -26.5 and 700/50-26.5. For heavier machines, Nokian manufactures the new PR-20-tyres, which are available in sizes 600/55-26.5 and 700/50-26.5.
Continue ReadingNew VP Of Corporate Research At Goodyear
Goodyear Tire & Rubber has appointed John Lawrence (58) as vice president for corporate research. Formerly director of materials science, Lawrence replaces recently-retired Richard Steichen. Lawrence joined Goodyear in 1970 as a senior research chemist.
Continue Reading40-Month Strike Settled At Titan Tire
The 40-month long strike by United Steelworkers of America against the Titan Tire Corporation at its Des Moines plant has been settled, with union members approving a labour agreement effective up to the year 2006. Maurice Taylor Jr., president and CEO of Titan International, said the company will now focus on growth and returning to pre-strike profit levels.
Continue Reading2,000 Jobs Cut By Michelin North America
Michelin North America has announced that it will cut 2,000 of its 26,500 workforce. The cuts will target the whole company, not just specific job classifications, and will be spread across not just the 23 plants but the whole company. Most will be achieved through normal losses and voluntary redundancies. Michelin wants to trim $75m in annual costs beyond the already announced $125m, and does not want to wait until the weak North American market begins to improve but rather to develop lean structures and create the ability to react to the market independently, whether the market improves or not.
Continue ReadingOfftake Agreement Between Nokian And Russian Producer
Nokian Tyres has entered into negotiations to start tyre manufacturing in Russia as soon as possible. The possible partner has not been named.
Continue ReadingAnalysts Recommend Michelin Shares As A “Buy”
Cheaper oil prices and the result of the Firestone recall in the US make Michelin shares a buy, according to analysts from the Deutsche Bank. Despite weakening demand in the US - the worlds biggest tyre market – Michelin is gaining market share and selling more tyres than ever. Market observers believe that it will be possible to obtain better prices for tyres in the region of 3 to 5 per cent.
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