Alongside the publication of Finnish Tyre manufacturer Nokian’s 2010 figures, the company announced a new addition to its board of directors. Benoit Raulin previously served as managing director of Bridgestone Deutschland GmbH and was appointed vice president Finance & Procurement at Bridgestone Europe NV/SA on 1 October 2010.
The latest market data released by GfK suggests Malaysia's passenger car tyre business recorded sales of over US$78 million during the fourth quarter of 2010. The analysts also reported increased popularity of American and European tyres in the market.
"It is not unusual for quarter four to register stronger demands as major festivities like Hari Raya, Christmas and school holidays all take place during the last few months of the year," commented Jennifer Chan, general manager of GfK Malaysia. "In preparation for heavier usage of their cars for visitations and long drives, car owners tend to send their vehicles for their due servicing which includes replacing their worn out tyres, around this period of time."
On 14 February 2011, the board of directors of Yokohama Rubber decided the following management changes in board membership and corporate officers, which take effective on 1 April 2011. The changes include the promotion of Hikomitsu Noji to director and senior managing corporate officer, president of Tire Group. He is currently director and managing corporate officer, president of the Tire Group, general manager of Tire Global Production Division.
The global commercial vehicle market is experiencing a “growing invasion of “low-cost trucks”, according to analysts from Frost & Sullivan. These trucks, mostly from Asian OEMs, are priced approximately 20-25 per cent lower than conventional trucks and are penetrating markets all over the world. In response the analysts are holding a free “European Threats and Opportunities” web conference on 22 February 2011 at 15:00 BST hosted by research analyst, Ryan Carmichael.
Analysts chided Hankook Tire’s fourth quarter financials as “as expected…weak fourth quarter results.” In an investor’s note published during the week commencing 31 January, Deutsche Bank wrote that the figures were “in line with our expectations, but…30 per cent lower than consensus.”
The underwhelming performance was put down to the continually rising natural rubber prices: “Tyre makers are generally guiding for rubber prices to remain strong over the next 6-12 months and average selling price hikes remain the only way to protect margins.”
Haulier David Murray reports that Bridgestone’s M729 drive tyre has achieved twice the performance of a standard competitor. David Murray Transport has been a customer to Bridgestone for over 12 years now and tyre performance and reliability has been a significant contributing factor to the loyalty shown. Managing director, David Murray, commented: “It is vital that all our components meet the high standards required, to provide a first-class service to our customers. Good quality, good wearing tyres provided by Bridgestone play a key role in delivering this.”
Continental AG’s adjusted EBIT is reportedly 15 per cent (100 million euros) above estimates produced by Deutsche Bank. With net debt below 6.5 billion euros, impressed analysts commented that “these better results are entirely attributable to the tyre operations.” The tyre division contributes 28 per cent of the group’s sales and 42 per cent of adjusted EBIT, which reported a higher result despite the significant raw materials headwind.
Bridgestone’s decision to impose a drastic 12 per cent increase of North American truck and bus tyre prices in only likely to recoup roughly a fifth of the increased rubber costs the tyre manufacturer has had to pay recent, Deutsche Bank analysts reported.
The cost of natural rubber price has reportedly doubled in 2010 and is said to have increased a further 15 per cent during the opening weeks of January 2011, according to an equity research note published by Deutsche Bank analysts Gaetan Toulemonde. So far this month natural rubber costs have continued to surge to US$5.7/kg, a new record high.
In response to Delticom’s record full-year 2010 figures, financial analysts have commented on the “very strong preliminary full-year figures.” Prior to the release of the preliminary numbers, which Tyres & Accessories published online at tyrepress.com on 17 January, the company predicted it would achieve 30 per cent growth and a pre-tax profit margin (EBIT) of 11 per cent. However financial analysts at Deutsche Bank had predicted that the company would outperform these already strong figures.
Kelli Diener has joined Cam Systems as business development manager reporting into Steve Daly, commercial director. She will be responsible for managing and developing client relationships to director level, ensuring service delivery excellence and effective customer communications.
New research by analysts at Plimsoll suggests the UK tyre market is polarised between “those getting it right and those struggling to recover.” David Pattison, senior analyst and author of the 2011 Plimsoll Analysis explained: “Now that the storm is lifting we have been able to assess the damage left behind. 38 companies are in parlous state and starting the New Year clinging on for dear life. We have rated them as Danger accordingly. Falling demand was the final nail in the coffin for many. The mistake they made though was to not make those painful cuts early enough to protect their business”.
The UK car market reported full-year growth at the end of 2010, but with registrations down nearly a fifth in the last weeks of the year analysts are predicting a 5 per cent decline in 2011. The latest UK automotive registration figures issued by the SMTT show that the market grew by 35,847 units to 2,030,846 units in 2010 ending 1.8 per cent up on 2009 figures. However, with registrations falling 18 per cent in December (123,817 units for the month), the SMMT predicts registrations will decline 5 per cent in 2011 to 1.93 million units due to continuing tough market conditions. Put into long-term context, 2010’s registration figure is the second lowest in the past decade and almost 375,000 units short of the 2007 levels.
With the burgeoning smartphone market driving mobile internet usage, recent research shows a dramatic increase in sales of these items during the past year, analysts GfK NIS have revealed that the average smartphone user makes up to 24 web sites visits per day, and a vast majority of these are to traditional websites and not just mobile specific sites.
It’s customary at this time of year to take a quick look back over our shoulders at what has gone before and perhaps more importantly to make some sort of predictions as to the year ahead. In the latest in our series of perspectives from the shipping industry, Rob Shelley, CEO of Maritime Cargo Services, tells Tyres & Accessories where he sees shipping volumes and extra-slow-steaming going in 2011 and what this means for anyone importing tyres into the UK.
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