analysts Archives - Page 28 of 49 - Tyrepress

Posts

Goodyear Close on Unit Sale

(Akron/Tire Review) Tyre and rubber industry analysts expect Goodyear to sell off its engineered products unit within the next few weeks, according to media reports. Continental AG has repeatedly said it was interested in acquiring the business from Goodyear, but it is not known if the German tyre and automotive system maker is close to a deal.

The sale price, according to the reports, could exceed $1 billion.

Among its product portfolio, Goodyear’s engineered products unit produces automotive belts and hoses, and industrial conveyor belts.

21st March 2007/by Tyrepress Editors

Michelin Issues 610 million euro Convertible Bond

Michelin is issuing a 610 million euro convertible bond, which has the option of increasing to 700 million. According to a Deutsche Bank report, the move surprised us analysts as they expected company management to focus on generating “strong free cashflow.” However, the analysts added, “conditions look favourable: premium of 35-40 per cent on share price; limited dilution (potentially around 6 million shares); and limited cost (3.4 per cent).”

15th March 2007/by Tyrepress Editors

Goodyear Price Hike Will “More Than Offset Costs”

Following Goodyear’s announcement that it will increase prices on by 4-5 per cent on 1 April, some analysts have suggested that the rise will more than offset raw material costs. The announcement follows similar moves by other premium manufacturers (namely Michelin and Bridgestone).

12th March 2007/by Tyrepress Editors

Strong Pirelli Q4 Results but No Dividend Expected

Pirelli & C. SpA operating results, due Monday March 12, are expected to rise, supported by the strong performance of its tyre operations in the fourth quarter. Additionally, according to analysts, it is also anticipated that the company will not pay a dividend after its 2.1 billion euro third-quarter write-down on its stake in Telecom Italia SpA.

9th March 2007/by Tyrepress Editors

Goodyear – a Highly Admired US Company

The Goodyear Tire & Rubber Company has been identified by Fortune magazine as one of America’s most admired companies. Goodyear was the highest-ranked tyre company and ranked No. 2 overall in the motor vehicle parts category of Fortune’s America’s Most Admired Companies, up three places from its 2006 ranking.

8th March 2007/by Tyrepress Editors

Analysts Raise Goodyear Share Target

Analysts have raised their share target for Goodyear following the company’s announcement that it will change its salaried benefits which will have the combined effect of reducing the company’s pension expenses by $80-$90 million in 2007 and $100-$110 MM in 2008.

5th March 2007/by Tyrepress Editors

Analysts: Cooper Stock Worth ‘A Second Look’

Shares of Cooper Tire & Rubber Co. hit a 52-week high on 2 March, despite reporting a more losses in its fourth quarter results. Cooper shares rose $1.18, or 7 per cent, to $18.24 in midday trading on the New York Stock Exchange. They had peaked at $18.45 earlier in the session.

5th March 2007/by Tyrepress Editors

Continental’s Earnings Growth Slows

For the second quarter in a row Continental AG, has not shown any earnings growth. Deutsche Bank analysts have observed that even if EBIT was 5 per cent above consensus in the fourth quarter, pre-tax earnings were down 1 per cent year on year. According to the market analysts this is because the group lost market share in winter tyres, and margin recovery at Motorola is slower than expected.

23rd February 2007/by Tyrepress Editors

US Tyre Shipments Decline

US replacement tyre shipments declined 4.9 per cent in January, despite being down 4.4 per cent in January 2005. The downturn is widely accepted to have been at least partly caused by the recent Goodyear strike. According to Deutsche Bank analysts, warm weather may also have pushed back demand for winter tyres. The analysts also observed that other tyre makers, including Cooper Tire, are experiencing better demand than the overall market data suggests

19th February 2007/by Tyrepress Editors

Analysts: Nokian Results 10 per cent Above Consensus

Financial analysts are reporting that Nokian Tyres’ recent fiscal results exceeded expectations. According to one Deutsche Bank note the Finnish manufacturer achieved further quarter net sales and EBIT 10 and 11 per cent above consensus respectively. The driver for the strong performance is said to have been the company’s was Car Tyres division, as growth in Russia once again surprised, growing by almost 100 per cent.

16th February 2007/by Tyrepress Editors

Strong Growth in China

Analysts have reported strong growth in both tyre production and exports in the Chinese market, with exports growing at a substantially faster rate than production. Quoting data obtained from the National Bureau of Statistics, analysts state that 2005 was a year of steady growth for China’s tyre industry, with output reaching 283 million units, an increase of 18.7 per cent over the previous year. This equates to sales revenue of more than RMB80 billion ( £5.25 billion ).

2nd February 2007/by Tyrepress Editors

US Military Awards $1.7 billion Ground Tyre Contract to Michelin

The United States military has awarded Michelin Americas Truck Tires a 10-year $1.7 billion contract to provide ground tyres for every type of wheeled vehicle for all military branches (Army, Navy, Air Force, Marines) around the world. This contract is in addition to the recently awarded $700 million-plus contract for military aircraft tyres. Michelin is already the majority supplier of US Army tactical tyres. The company invested $16 million to increase military tyre production in order to meet the surge in demand related to Operation Iraqi Freedom.

26th January 2007/by Tyrepress Editors

Tyre Aftermarket in India Growing: Frost & Sullivan Report

(Akron/Tire Review) A new report from Frost & Sullivan, entitled “Indian Tire Aftermarket,” shows that the Indian tyre aftermarket earned revenues of $1,461.7 million in 2005 and estimates revenues to reach $3,414.6 million in 2012.

23rd January 2007/by Tyrepress Editors

Continental’s EBIT Could Improve

Following Manfred Wennemer’s recent statement that he was expecting a lower pre-tax profit margin in 2007, Deutsche Bank analysts have suggested the Continental CEO’s words were “very bearish.” Wennemer’s assessment is based on the cost of integrating Motorola’s car electronic unit (3 per cent EBIT margin versus 11 per cent for Continental AG) into the group.

18th January 2007/by Tyrepress Editors

Conti’s High EU Winter Tyre Sales Could Make ’07 Season Harder

Days after Continental announced that it increased sales of winter tyres by 8 per cent in 2006, financial analysts have been assessing the knock-on effect. In one report Deutsche Bank analysts suggested: “…since the weather [was] mild in Europe in the fourth quarter 2006, the sell out season was low, underlying high inventories at dealers. As a result they say there is a risk that the 2007 winter season will be challenging as dealers will have to move their excess stock first before ordering new tyres.

18th January 2007/by Tyrepress Editors