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15136

Sales And Profits Rise For Nokian

Good 4Q sales have helped Nokian to increase turnover and profits for last year. Sales rose 13.2 per cent to 479.2 million Euros (2001: 423.4 m). Operating profit was up at 60.1 million Euros (2001: 50.1 m) and profit before taxes rose 29.5 per cent to 48 million Euros (2001: 37 m). Sales from car tyres were up 17.5 per cent to 242.8 million Euros (2001: 206.6 m) and operating profit rose 10 million to 51.4 million Euros. Much of the tyre sales (73 per cent) came from winter tyres. There were increases too in sales of heavy tyres and bicycle tyres, but sales of retreading materials slipped slightly. The Vianor chain also showed an increase in turnover and profit.

15137

French manufacturer takes 10% stake in Hankook (Update)

Towards the end of January, news broke of a partnership agreement between Michelin and Hankook Tire, whereby the French manufacturer took a 10 per cent stake in the Korean company. The deal was signed in Seoul by Hankook Tire president Choong Hwan Cho and Michelin Asia-Pacific president Jean-Marc François and, according to the official communiqué, the purpose was to allow the companies to exploit synergies in a search for common opportunities to develop their respective positions in the tyre market.

15138

Q4 And Full Year Results For TBC

TBC Corporation (Memphis/TN), one of the USA’s largest aftermarket tyre distributors has announced record sales and earnings for the forth quarter and year ended 31st December 2002.

15139

F1 Tyre Competition Goes On

Michelin’s Motorsport Director, Pierre Dupasquier, has been reported in the British media saying that the tyre manufacturer developed new compounds and constructions for Formula 1 during the winter. Compared with 2002, the new tyres should be about one second quicker per lap and he hopes that the teams Michelin fits in 2003 can break the dominance of the Bridgestone/Ferrari package.

15140

What’s New?

This time of year traditionally sees the launches of many new tyres. With product life cycles becoming ever shorter, the number of new tyres coming on to the market is growing. We examine the latest offerings.

15141

Disappointment at Government’s initial response to producer responsibility question

In January, the Tyre Industry Council held one of its regular briefings for the press and associate companies. After welcome from Secretary Peter Taylor, Chris Wakley, who handles public relations for the TIC, gave a brief summary of last year’s activities. While stressing that the support from police forces was as strong as ever, he said that fewer tyre checks than planned had been carried out. One reason for this was the need for cars to accompany the Green Goddesses during the firefighters’ strike, but another major reason was the perennial problem of lack of fitters to attend roadside checks. The reasons for this have been frequently aired in this magazine, but the fact is, said Wakley, that fitters are essential for the exercise, as police are sometimes reluctant to interpret tyre law at the roadside and rely on the trade’s specialist knowledge. The end result is that the number of cars checked was around half of that in 2001. Despite this, the figures concerning illegal tyres are remarkably consistent, with 11.6% of cars checked having at least one tyre with a tread depth below 1.6 mm. The figure for 2001 was 11.7%. However, when we look at what the TIC describes as “badly worn tyres” (ie with a tread depth above the legal minimum but below 2mm), there has been a worrying increase, from 11.7% to 14.9%. Although common sense dictates that worn tyres increase the chances of an accident, this is not accepted by Government, who say that statistics show that tyres contribute to a very small number of accidents. The TIC’s answer to this is that the police rarely record tyre tread depths in accident situations, so the figures are artificially low.

15142

“Michelin – The BMW Of The Tyre Industry”

Business newspapers in France and England are commenting on a paper from the french analysts Gaetan Toulemonde and Alexis Boyer both from DB Global Equities are recommending Michelin shares as a clear “buy”. The share price – at about 31 Euros at present – has, according to the analysts, the potential to rise to 50 Euros within 12 months. Michelin is seen by them as “the BMW in the tyre industry” with strong brands and an excellent brand strategy. It is expected that Michelin will announce in a press conference at the end of February a turnover for 2002 of about 15.7 bn Euro and an operating profit of 1.1 bn Euro. For this year the company is aiming for a turnover of more than 17 bn Euro and an operating profit of more than 1.2 bn Euro. The stock capitalisation at present is 4.6 bn Euro. Michelin’s strategy has been focused for years on a significantly improved product mix. 5 years ago 60% of all tyres produced were bread and butter tyres, but this proportion has been improved. Today, standard tyres account for about 45% and shortly this will come down to 40%. Under the leadership of Edouard Michelin, in recent years the Group has drafted its profit and loss expectations very precisely and has been able to achieve its goals. It is the declared target of the management to increase the operating profit from the current 7 to 7.5% to 10% from 2005. This is easier said than done and market conditions can change overnight; for example, a possible war with Iraq could lead to much higher oil prices and higher costs for all other raw materials. On the other hand the automotive suppliers are facing in North America extremely fierce competition and the automobile companies General Motors, Ford, and especially Chrysler, are trying to get their suppliers to subsidise them again by forcing them to reduce prices. In this climate it will become very difficult to increase prices, or even to ensure that recent price increases will stick.

15143

Bridgestone And MRF Tie In Indian JD Power Test

For the second year running, Bridgestone and MRF Tyres have tied in first place in the JD Power Asia Pacific 2003 India Tire Customer Satisfaction Index Study, which examines customer satisfaction with originally-fitted tyres after 12 to 18 months of ownership. 2,700 owners were quizzed on 15 different attributes. The overall average score improved by 28 points over last year, reflecting the efforts made to enhance customer satisfaction. Top score was 768 (maximum = 1,000) and Bridgestone and MRF were closely followed by JK Tyres (766, just above the industry average of 764). Goodyear scored 751 and CEAT was the lowest, with 730.

15144

What Is The Future For Goodyear?

Four years ago: In an interview at the Geneva Autoshow, Sam Gibara put forward his views. Goodyear had, according to him, the best people, the best distribution, the most cost-effective plants, the best products and – with its innovative EMT tyres – a three-year lead over its competitors. Within three years, he predicted, 75% of Goodyear tyres produced would be EMT tyres (in 2002, the actual figure was one million tyres). The IMPACT production process (Integrated Manufacturing Precision Assembled Cellular Technology) was held up as a revolutionary advance, guaranteeing predominance over the competition and an example of Goodyear’s technical leadership.

15145

More Cuts At Goodyear

The Akron Beacon Journal (ABJ) reports that Goodyear plans to cut 15 per cent of its North American tyre production capacity and move production to low cost centre countries. The source was an internal company newsletter distributed to employees on Wednesday.

15146

“Michelin – The BMW In The Tyre Industry”

Business newspapers in France and England are commenting on a paper from the french analysts Gaetan Toulemonde and Alexis Boyer both from DB Global Equities are recommending Michelin shares as a clear “buy”. The share price – at about 31 Euros at present – has, according to the analysts, the potential to rise to 50 Euros within 12 months. Michelin is seen by them as “the BMW in the tyre industry” with strong brands and an excellent brand strategy. It is expected that Michelin will announce in a press conference at the end of February a turnover for 2002 of about 15.7 bn Euro and an operating profit of 1.1 bn Euro. For this year the company is aiming for a turnover of more than 17 bn Euro and an operating profit of more than 1.2 bn Euro. The stock capitalisation at present is 4.6 bn Euro.

15147

Goodyear Fires 700 In Akron (Update)

Although reductions in staff had been expected, the news item still fell like a bombshell: Goodyear, the tyre manufacturer, is sending more than 700 salaried staff home, 350 of these from the company headquarters in Akron, Ohio, alone. The press releases on the subject refer to a "restructuring", holding that the move was necessary to strengthen attempts to accelerate Goodyear's turnaround. With this measure, it is said, Goodyear can remain competitive, and CEO Keegan even demands something like a "winners' attitude" from the remaining associates. This may go down well in America, yet to the ears of staff hit by the cuts, who have not been charged with having done anything wrong, it must sound almost cynical. Meanwhile, Thursday January 16th , Akron witnessed moving scenes among staff. For one thing, no one expected such serious staff cuts; and for another, it looked as if someone had simply gone through the ranks with a rake, plucking out staff members who never even dreamed of being dismissed. The entire proceeding bears a certain handwriting and leads one to suspect that top and higher-echelon management made the decisions more or less on their own, and that middle management, presumably was not involved in the matter and now lives in fear of a loss of functionality. In the end, the work to be done has neither gone away nor even lessened. Instead, it must be carried out by the employees still holding their positions.

15148

U.K. Firm Buys Canadian Microwave Plant

Environmental Waste International Inc. has made its first sale of its reverse polymerisation tyre processing plant. It has sold its first plant to an un-named firm in the United Kingdom for an operation to be located there. The company has received a deposit of more than 1 million dollars against the purchase price of 10 million dollars. The plant should be commissioned within 18 months. Environmental Waste International’s system uses microwave energy to separate scrap tyres into carbon black, oil, steel and hydrocarbon gases. The plant can process 3,000 tyres per day. It reduces each 9kg tyre to about 3.5kg of carbon black and 1kg of steel. The plant can use the oil and hydrocarbon gases released to produce enough electricity to run the system. Excess electricity can be sold to the power grid.

15149

RFID First For Michelin

As reported in T&A RFID tyre identification systems are about to become an element of tyre production and management. After testing on truck and earthmover tyres, Michelin has begun fleet testing of Radio Frequency Identification tagging on passenger car and light truck tyres. The technology allows the tyre identification number to be associated with the vehicle identification number (VIN) making the tyres uniquely identifiable with an individual vehicle, telling when and where the tyre was made, maximum inflation pressure, tyre size, etc.. The ability to identify and track individual tyres through their life cycle has attractions for tyre management services, but ultimately may have applications in the control of the tyre life cycle, including retreading and recovery.

15150

Generation Power At Titan Technologies

Titan Technologies (Albuquerque/USA) has announced that its ability to generate electricity by using the gas and carbon black byproducts generated by its tyre recycling process has sparked considerable interest from tyre shredding operations across North America. Titan had been researching the use of its plants to generate electrical power. Titan addressing costs and developing scrubbers to eliminate emissions from combustion of the oil, gas and carbon black produced by the process. Once these costs have been determined, Titan will develop an electrical generation business pro forma for different locations. At this time, Titan believes that a TRTM plant is an economically viable electrical generation system. Ronald L. Wilder, Titan’s president, added, “All cities and countries have major waste tyre problems and most, if not all, will need additional electrical generation. There can be special benefits if additional power comes from recyclable waste tyres”. Titan’s current claim is that the BTU output of a Titan Technologies tyre recycling plant processing 100 tons of scrap tyres per day is almost 3 billion BTU/day in excess of the energy required to operate the recycling plant. This excess will generate approximately 20 mega watts of continuous electrical power.

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