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Continental confident on 2005 outlook

Continental’s president and CEO (North America), Martin de Louw, is “optimistic on 2005’s outlook” reports Deutsche bank. Analysts predict that earnings will benefit from a partial payback from the Mayfield plant closure and the conclusion of restructuring charges attached to it.

The consolidation of Phoenix and a positive impact from selling price increase/raw material price increase of maybe 50 million euros is also expected to benefit the company. “Overall while 2004 was a good year for Tires Co, 2005 could be even better,” say analysts.

14th January 2005/by Tyrepress Editors

Cooper Analysis Positive

According to Deutsche Bank, Cooper Tire’s (CTB) management “sounded pretty optimistic on CTB’s growth prospects for 2005,” at a recent analyst conference.

Company representatives remain positive about industry pricing, reports the German news source, with Cooper rolling out new price increases of up to four per cent in March. New contracts that have recently been secured should also encourage 2.5 per cent growth, say analysts.

14th January 2005/by Tyrepress Editors

US Tyre Shipments Beat Expectations

Financial analysts are predicting that the US tyre market has performed better than expected in the month of December, increasing 9.5 per cent year-over-year. The news follows a six per cent increase in November and an 8 per cent decline in October. The market watchers from Deutsche Bank estimate that US tyre manufacturers are likely to have experienced a 2.5 per cent increase in replacement volume. In addition the analysts report that volumes this quarter are also better than expected. As a result Deutsche Bank predicts that Cooper and Goodyear will experience a positive modification in their share prices of $0.10 and $0.07 respectively.

11th January 2005/by Tyrepress Editors

Bridgestone’s Shares Fall: Update

Deutsche Bank analysts have cast doubt on the negative predictions published in the Japanese business press. According to the market observers, reports that Bridgestone’s recurring profit is set to fall 17 per cent year-on-year may not be as accurate as they seem. Although the article cites high raw material costs and yen appreciation, it fails to take into account tyre price increases, which started being implemented in Japan last year. The analysts explained that in the last few year Bridgestone has recorded strong earnings, defying the Nikkei’s projections. As a result the bank says it will not change its earning projections or rating, adding that if the share price dips below 2000 yen this would represent “an attractive investment opportunity.”

5th January 2005/by Tyrepress Editors

BorgWarner Publishes Tender Offer to Beru Shareholders

BorgWarner Germany, an indirect subsidiary of BorgWarner, Wilmington, USA, has officially published its takeover offer for Beru. As previously announced, the offered purchase price amounts to 67.50 euros per share. The acceptance deadline is 24 January 2005.

According to Deutsche Bank analysts, the most interesting point about the offer it’s the fact that BorgWarner does plan to opt for a “squeeze out” or a domination agreement “for the time being.” However, there is clause stating, if Beru’s AGM agrees to a domination agreement or a squeeze out within one year after publication of the offer and the price is higher than the current takeover price then BorgWarner is bound to pay the difference to those shareholders who have tendered their shares.

The closing of the share purchase agreement and the exercise of the share purchase option agreement remain subject to regulatory approval of the relevant authorities. More details are expected in the next few days.

9th December 2004/by Tyrepress Editors

US Tyre Shipments Increase

Deutsche Bank analysts are reporting that US tyre replacement shipments have “picked up” in November, increasing 6 per cent year over year. This was the first positive year over year comparision since June. The analysts also suggest that Cooper Tire may have slightly under-performed in the market. In spite of this the analysts also report that Cooper is currently proceeding above its –10 per cent volume assumption for the quarter.

9th December 2004/by Tyrepress Editors

European Car Sales on the Increase

Northern European car sales are set to increase by up to 9 per cent, market analysts from Deutsche Bank are predicting. According to the bank sales could turn out strongly rising roughly 9 per cent. The reason behind the growth is said to be down to a number of factors including an 11 per cent increase in the German market, two additional selling days in the month and a number of significant launches.

8th December 2004/by Tyrepress Editors

Goodyear Appears to be on The Right Track

Rivals Bridgestone, Michelin and Continental published turnover and earnings figures last week, something that could only serve to put pressure on Goodyear. The US tyre manufacturer will publish its third quarter figures on 9 November, but unofficially the management signalled that the company had again made a small profit after a profitable second quarter.

For Goodyear, any profits are very welcome. After three catastrophic years with losses totalling more than $2 billion, it is expected that Goodyear will reach “a red zero” at the end of the year. But, it is painful to see that Goodyear, after having paid well over $100 million in fees for the restatements of 1999 to 2003, is in trouble again regarding accounting irregularities. Analysts agree that it is “unnerving” that Goodyear has been unable to overcome these problems.

8th November 2004/by Tyrepress Editors

Weak Third Quarter for Superior Industries

Analysts have suggested Superior is taking a “last man standing approach” while the company reports relatively weak third quarter results.

28th October 2004/by Tyrepress Editors

Michelin’s Sales Growth Slows

After “exceptional growth” in the first half of 2004, Group Michelin has posted third quarter results that show slowdown in sales growth.

26th October 2004/by Tyrepress Editors

Slow Quarter for Tyre Manufacturers

Financial analysts are reporting that this quarter is likely to be a slow quarter for retailers and tyre manufacturers. According to the Deutsche Bank analysts, tyre shipments were weak in September declining 6 per cent year over year. This is said to have follow a 7 per cent decline in July and a further 1.5 per cent slip in August. As a result, the consultants are predicting that US tyre makers will experience, on average, a 5 per cent drop during the quarter. Industry players are attributing the weakness to weather in Southeastern US and the ever-increasing fuel prices, impacting on car maintenance spending. This analysis means that the bank is lowering is third quarter estimates for both Goodyear and Cooper.

11th October 2004/by Tyrepress Editors

Goodyear Downgrade to Neutral

JP Morgan has downgraded Goodyear Tire & Rubber from “overweight” to “neutral.”

Analysts claim that the downgrade is based on “valuation” and the company’s “less bullish growth prospects in 2H.” So far this quarter the company’s share price has appreciated 18 per cent in absolute terms and this combined with slowing growth rates has brought down the company’s rating. JP Morgan also asserts that Goodyear is unlikely to witness significant gains from its recent price increases.

30th September 2004/by Tyrepress Editors

UK Worst for Car Reliability

Jaguar has felt more pressure after itself and Land Rover came second and third from bottom in a survey of vehicle reliability and cost of repair.

Off-road specialist Jeep recorded worse results in the study of 30,000 vehicles from 27 leading manufacturers.

There was good news for the Far East, which remained number one for reliability in the analysis by independent automotive warranty firm, Warranty Direct.

29th September 2004/by Tyrepress Editors

September Sales off to a Slow Start

September’s US auto sales appear to be off to a slow start according to a recent Deutsche Bank survey. The analysts’ results suggest that the light vehicle SAAR is claiming around 16.1 million units (16.5 total) a figure that compares poorly with last September’s 16.7 million.

Hurricanes are again thought to be the reason for the dwindling figures and analysts believe that these indications of a weak start are likely to weigh heavily on the sector. Ford’s sales are down 10 per cent and its market share around 20 per cent. It is also estimated that GM ‘s sales are down three per cent, implying a 28 per cent market share. Whereas Chrysler’s sales are thought to be flat, implying an 11.7 per cent market share.

20th September 2004/by Tyrepress Editors

The Effects of Reduced Demand

As a result of the decline in the US tyre market, Deutsche Bank analysts are revising their estimates for tyre manufacturers Goodyear and Cooper. The analysts say they are adjusting their share price estimates for Cooper from $1.85 down to $1.70. Goodyear’s estimates are to be adjusted by a similar amount, from 50 down to 40 cents. According to the analysts, the 1.6 per cent slip in the market during August is a consequence of high fuel prices, which in turn reduces the amount of disposable income available to consumers.

10th September 2004/by Tyrepress Editors