Deutsche Bank: Goodyear ‘Sell’, Cooper ‘Hold’
Due to very weak North American tyre demand in the first quarter 2006 Deutsche Bank recommends its sell rating for Goodyear shares and put Cooper stock on “Hold.”
Founded in 1898 by Frank Seiberling, The Goodyear Tire & Rubber Company is an American multinational tyre manufacturing company based in Akron, Ohio. It is one of the oldest, biggest and best-known tyremakers in the world. Goodyear makes tyres for automobiles, commercial trucks, light trucks, motorcycles, SUVs, racing cars, aeroplanes, farm equipment and heavy earth-mover machinery. Find all the news and analysis you need relating to Goodyear here.
Due to very weak North American tyre demand in the first quarter 2006 Deutsche Bank recommends its sell rating for Goodyear shares and put Cooper stock on “Hold.”
Cooper’s recent 2005 results may have shown full-year losses, but they also show that the company’s inventories would have been $125.6 million (41 per cent) higher “had they used FIFO instead of LIFO.” The results have implications on the way other company’s results are interpreted. “As a result, we would expect a substantial earnings impact from raw material cost inflation in the quarters ahead,” Deutsche Bank analysts said referring to Goodyear.
Last week Continental shares reached a new high of 86.51 euros while the competitors Toyo (-7%), Yokohama (-6%) and Nokian (-5%) lost ground. Michelin, by comparison, has remained stable at around 50 euros. Goodyear started a downswing at the end of February from more than 15 euros to 11 euros and is in danger of falling below 10 euros in the near future.
(Akron/Tire Review) SURE Tire has added Goodyear’s new Fierce brand of performance tire to its product portfolio. As a result, SURE said it will phase out its Essenza private brand. SURE members learned of the addition at the group’s recent shareholders meeting.
Following the announcement that Christian Salvesen would take on warehousing and distribution deals with two of the UK’s leading tyre companies, Tyres & Accessories took the opportunity to speak to Continental’s supply chain manager, Stuart Jackson, and asked what the company had to gain from working with a competing manufacturer.
It is received wisdom that the vast majority of 4×4 vehicles never leave the tarmac, let alone spend weekends up to their axles in mud, yet image is still very important. Drivers like their vehicles to look as though they could tackle Mt. Everest on a winter’s day, even if their most taxing journey is the school run.
Tyres play an important part in this image creation – aggressive, knobbly tyres certainly look the part but, says Goodyear, fitting these tyres just for their looks can be counter-productive. While many 4×4 drivers want their vehicles to look tough and rugged, they actually want on-road performance similar to that of an ordinary saloon car.
This week marks the production of the 4 millionth RunOnFlat tyre produced by the Goodyear Dunlop group in Europe. Goodyear RunOnFlat tyres are built at the company’s plant in Fulda, Germany, while Dunlop RunOnFlats are built in Hanau and Furstenwalde, Germany.
(Akron/Tire Review) Penske Truck Leasing Co. tapped Goodyear Tire & Rubber Company as its top supplier for 2005, the seventh straight time it has claimed the honour. Goodyear was rated first among all suppliers according to Penske’s quality rating system. Goodyear provides Penske with replacement and retread medium truck tyres in North America, as well as fleet management services.
The Al-Dobowi Group has announced plans to participate in the 11th International Automotive Aftermarket ‘AAME 2006’ scheduled to be held from 20 – 22 March 2006 at the Dubai World Trade Centre, Dubai, UAE. The Middle East’s Automotive Industry is estimated to be worth around 18 billion dirhams (£2.8 billion, 4.1 billion euros).
Michelin is claiming its products last longer than tyres made by any other manufacturer. Following a rigorous testing regime by Germany’s TUV, the French manufacturer is claiming that its Primacy HP tyre gives at least 25 per cent longer tread life than any other competitor, while its “Green” tyre runs for 54 per cent longer than the worst competitor. In addition Michelin claims the Primacy HP brakes as well in the wet after 10,000 kilometres as when brand new.
Goodyear Dunlop Tyres UK promoted Matthew Bowell to the new role of PR support manager in the company’s corporate communications team. Bowell joined the tyre giant in 2004 as Communications Specialist, after beginning his PR career in a London NHS Trust, before moving to work on the Comic Relief programme in 2002 and 2003.
Viking International has announced the appointment of Mike Singleton as account manager for the South East. Singleton’s area will include London, Kent, Hampshire, Surrey, East and West Sussex and will take him as far as Bournemouth and Poole.
Singleton (39), originally from Bracknell in Berkshire, began his career in 1983 on a YTS scheme for National Tyres and Autocare as a trainee tyre fitter. After a short spell with Cafco Automotive Ltd, Singleton continued to work for National Tyres in various sales and managerial roles until 1996. Subsequently, he joined ATS (Southern) Ltd and finally Hi-Q (Goodyear), again in various sales roles before joining Viking International.
Owner Leocadio Alcaide (38) founded his company in 2000 in Alcalá de Guadaíra, on the outskirts of Seville, as a retailer of premium new tyres such as Goodyear, Michelin, Firestone and Dunlop. He also sold Bandag retreads manufactured by a Bandag Dealer in Andalusia and soon realised that opening his own Bandag shop would be an important contribution to the transport sector in the area.
Goodyear has reported a fourth quarter net loss of $51 million for 2005, compared with the previous year period’s net income of $125 million. This year’s lower result was put down to losses caused by the sale of the company’s farm tyre unit. Despite the losses the company recorded sales of $4.9 billion in the fourth quarter and a full-year sales record of $19.7 billion. According to the company, sales benefited from improved pricing and product mix and higher volume in the international tyre businesses, while the effect of currency translation reduced sales by approximately $107 million in the quarter.
(Akron/Tire Review) Goodyear Tire & Rubber Co. has named four truckers as finalists in its annual North America Highway Hero Award. The winner will be announced at next month’s Mid-American Truck Show in Louisville, Kentucky, Mar. 22-24. “We are indebted to truck drivers across the United States and Canada who keep America rolling,” said Steve McClellan, Goodyear’s vice president for commercial tire systems. “In this, the Goodyear Highway Hero Award’s 23rd year, it was especially difficult to select just four truck drivers who placed themselves in harm’s way to save someone else.”
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