Pirelli to Re-Focus on Core Tyre Business
Pirelli Tyre has reported that its sales revenues fell marginally down 1.5 per cent from 4.162 billion euros in 2007 to 4.1 billion in 2008. However, pre-tax profits fell considerable due to the difficult economic environment and raw material costs. EBITDA stood at 443 million euros, down 19 per cent compared with 548.6 million euros in 2007. And EBIT came in at 250 million euros, 30 per cent down on 2007’s 358 million. As a result, the company reports that it “undertook restructuring actions, accelerated in the fourth quarter against further deterioration of the market, in order to strengthen the competitiveness of the industrial organization in Europe and reduce costs of central structures.” The company registered revenues of 870 million euros, down 5 per cent on a like-for-like basis, in the fourth quarter of 2008. EBIT of 18 million euros before restructuring charges (which in the fourth quarter alone amounted to 68 million euros) compared with 71.9 million euros the year before.
Continue ReadingDeutsche Bank Report Lowers Goodyear Estimates
Noting the “larger than expected” production cuts in Goodyear’s 2008 fourth quarter and a “sharp decline” in the manufacturer’s profitable South America and Asia regions, Deutsche Bank analysts have adjusted its estimates for the company’s 4Q 2008 and 1Q 2009 results. In a report released this week (commencing 9 February), Deutsche lowered its estimates to -$1.30 from -$0.86 for 4Q 2008 and to -$1.86 from -$1.50 for 1Q 2009. Deutsche’s statement said that as well as the production cuts, Q4 had seen raw materials rise further than was previously expected. In addition it continues, “Some of the downside appears to be derived from a sharp decline in Latin America and Asia, two regions that have produced a disproportionate share of GT’s [Goodyear’s] profitability in the past.”
Continue ReadingPirelli not Interested in Continental – Tronchetti Provera
According to news published by Reuters, Pirelli & C SpA is not interested in acquiring the tyre business of Continental AG. The news service reports that a comments to this effect were made by Pirelli chairman Marco Tronchetti Provera on February 11. During a press conference Tronchetti Provera said the Italian company was instead focusing on stand-alone growth.
Continue ReadingNokian Tyres’ Kazakhstan JV on Hold
Amongst the announcements made upon the public release of the Nokian Tyres 2008 financial statement is news that the company’s joint venture in Kazakhstan has been put on hold. The project with Ordabasy Corporation, agreed upon in 2007, has been paused by mutual agreement, Nokian reports. The company adds that the project may be re-launched, at the earliest, in late 2010. An agreement has been made to return an advance payment of 12 million euros, made for technical support, to Ordabasy.
Continue ReadingNokian Net Income Down 17% in 2008
Sales at Nokian Tyres increased 5.5 per cent in the twelve months to December 31, 2008, totaling 1.08 billion euros for the year. During the final quarter of the 2008 year, however, sales slumped 24.9 per cent to 267.7 million euros. Annual operating profit, at 247.0 million euros, was also up 5.5 per cent, however during the final quarter it more than halved to 46.5 million euros. Net profit for the 12 months amounted to 139.9 million euros, 17.2 per cent less than in 2007. Nokian Tyres reports a net loss of 11.6 million euros for the final quarter.
Continue ReadingBirla Workers Demand Arrests
Hundreds of workers of Birla Tyres have agitated before the Balasore collectorate, demanding the immediate arrest of the companys top three executives. The workers, led by Birla Tyres Workers Union (BTWU) president Rajendra Bal, submitted separate memoranda to the District Collector and the SP with a demand to arrest the companys senior president Deepak Tandon, general manager (personnel) Anil Upadhyay and another senior executive SR Roy in seven days. The workers alleged that the three executives had attacked union’s general secretary Deepankar Bardhan and his colleague on Saturday. When Bardhan refused to endorse the ‘No work no pay’ policy from February 16 to 28, when the company would remain closed during the period, due to the global meltdown, the three executives beat him up and Hari Mohan Das, claimed Rajendra Bal. An injured Bardhan, who had been admitted to the district headquarters hospital, was later discharged. Police are investigating the incident.
Continue ReadingBridgestone Wins 12-Month Contract
Bridgestone and Truck Point have been awarded a 12-month contract by A W Jenkinson Forest Products to supply replacement tyres and tyre services to the companys haulage fleet, which comprises more than 250 vehicles and 280 trailers. A W Jenkinson handles over 2.2 million tonnes of wood fibre, paper products and recyclables and is the largest bark processor in the UK. The contract will see Bridgestone UK supplying new tyres and tyre servicing will be carried out by Truck Point service provider Harolds Tyres of Penrith.
Continue ReadingTechnology Developers Rhodia & Dow Corning to Exhibit at Expo
Rhodia and Dow Corning Corporation are to exhibit together at Tire Technology Expo, which is being held in Hamburg, Germany, between February 17 and 19. The two companies can be found in Hall 1, at Stand 4140. The companies’ joint appearance at the exhibition follows last November’s announced agreement to develop and market new tyre industry silica/silane products. The aim of the agreement, according to Rhodia, is to develop and commercialise innovative silica/silane combinations, principally for the tyre industry where the association of precipitated silica and silane is used in low-energy tyres to help reduce rolling resistance. Silane is the component that enhances the interaction between polymer and silica.
Continue ReadingUS Goodyear Plant Gets Help, Another Faces Sharp Cuts
One Goodyear tyre plant is getting financial assistance, while another may see sharp reductions, according to various news reports. The Fayetteville Observer reported that Goodyear will receive $1 million over the next decade from the city of Fayetteville, the money intended to help retain jobs at the plant. Meanwhile, Goodyear plans to announce a restructuring and cost-cutting plan on 18 February, when company executives and union leaders meet later this week to discuss the future of the companys Danville, Virginia plant. Goodyear executives and union officials have this week held a series of meetings concerning the future of the tyre maker’s Danville, Virginia truck tyre plant. The Danville Register & Bee reported that company executives arrived Monday and are expected to be in Danville through Wednesday.
Continue ReadingToyo Makes Radical Incisions
Following the release of Toyo’s latest financial results, the company has announced a host of measures to stem its financial haemorrhaging. The company reports being in the midst of business conditions that it expects will grow ‘more stringent’ and be reflected in further deteriorating earnings for the 2008 financial year. The sources of these woes, the company adds, are the global economic slowdown and the yen’s appreciation. Toyo reports a review of its Japanese and international manufacturing systems is underway, and on the back of this it will reduce the number of employees at manufacturing operations to match current production levels. As part of its reorganisation, Toyo says it plans to transfer employees from administrative departments to manufacturing departments.
Continue ReadingApollo Targets 10% Domestic Alloys Market
Leading Indian manufacturer Apollo Tyres has launched a range of alloy wheels under the brand name Acelere Wheelz to be sold through its passenger car tyre dealers in Dehli, Bangalore, Chennai and other major cities. At the launch, the company stated that it was “confident of capturing between 7 per cent to 10 per cent of the alloy wheels market in India,” and that it plans to release a new collection of rims every six months. You don’t have to be an osteopath to realise that the company is adding muscle to the existing bones of its tyre business, but to underline the point Apollo plans to make Acelere Wheelz available in “combo” offers with the company’s Acelere, Acelere Sports, Aspire and Hawkz passenger car tyres. At present, the Indian alloy wheels market stands at an estimated figure of around 90,000 per month, of which 40 per cent is aftermarket, says Apollo. As yet, only 15 per cent of these come from the organised sector, with the rest imported.
Continue ReadingAdvanced ID Restructuring to Affect UK Operations
A letter to shareholders in Advanced ID Corporation, sent by company chairman Seymour Kazimirski on February 9, indicates that changes to the firm’s UK operations are afoot. Specific details of these changes and what they mean to the company’s Derbyshire based Pneu-Logic subsidiary, however, were not set out. “As we enter the New Year, I would like to take this opportunity to summarise the goals we have established for 2009,” began Kazimirski. “You are all well aware of the challenges we faced in 2008 with the systemic breakdown of the capital markets worldwide. More specific to Advanced ID, we experienced the meltdown of the auto industry, which has greatly impacted the tyre industry. Estimates of decreased global tyre production are upwards of 40 per cent. We are working to meet these challenges.”
Continue ReadingBridgestone Revises 2008 Fiscal Projections – Again
Finally, some good news from within the tyre industry. Bridgestone, which on January 29 revised its 2008 fiscal year financial projections, has done so again – but this time upwards. Net sales have, admittedly, been downwardly revised, by 20,000 million yen to 3,230,000 million yen (£23.77 billion). However operating income, now estimated to be 131,000 million yen (£964.15 million), has increased 11.0 per cent in the latest projection. Likewise, projected ordinary income has been upwardly revised to the tune of 15.6 per cent, and now stands at 74,000 million yen (£544.64 million). Net income jumps by a third to 10,000 million yen (£73.60 million).
Continue ReadingVee Rubber Catering to Export Markets
In terms of the variety of tyre types produced, Vee Rubber Group is the leading company in Thailand – the company manufacturers a range that covers numerous applications, from go-kart to large commercial vehicle tyres. Most of the company’s production output – which in 2008 amounted to 24 million units – is destined for export, and Vee Rubber designs and manufactures tyres that are suited to their target markets. Recently Vee Rubber introduced companys first light truck and 4x4 tyre developed specifically for the North American market – the Taiga H/T. the new tyre was extensively tested in a number of different climates and on many different surfaces, including off road and the result, the company says, is a quiet, comfortable tyre with a long tread life; in the US, the tyre is offered with a 50,000 mile limited tread wear warranty. While the Taiga is not designed as a snow or all terrain tyre, it aims to allow drivers to face everyday driving with confidence, whatever the conditions.
Continue ReadingPirelli US Recalling Motorcycle Tyres
Pirelli Tire is recalling certain Metzeler ME880 Marathon motorcycle tyres, sizes 13/90B6 M/C TL 73H and 140/90B16 M/C TL 77H. The tyres were manufactured between 22 June and 13 September, 2008, and were stamped with incorrect load range and inflation pressure information. Pirelli said it will notify owners and replace the tyres free of charge. The recall began on 18 November, 2008, but was only made pubic by NHTSA on 10 February. (Tire Review/Akron)
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