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Goodyear’s Pension Funded Status worrying

While the US- Automobile Industry and most of the suppliers could improve their pension fund positions, Goodyear is, according to analysts, an exception. Compared with liabilities of 2.2 billion US-Dollars at the year end 2002; those could now have risen to 3 billion US-Dollars. Analysts from Deutsche Bank do not see potential for Goodyear shares and recommend a
cautious stance. They still have doubts that Goodyear can manage the long awaited turnaround in North America this year despite the fact that the
markets as well as the tyre replacement market have shown strong improvements.

7th January 2004/by Tyrepress Editors

Goodyear: Net loss grows to 332.4 million $ for the first 9 months

Tyre manufacturer Goodyear announced a net loss of 332.4 million US Dollars for the first nine months of this year. The net loss for the 3rd Quarter totalled $105.9 million. Sales in the last quarter rose around eleven per cent from 3.5 to 3.9 billion Dollars. However, volumes increased only by approximately two per cent from $54.4 (3Q 2002) to $55.3 million (3Q 2003). According to Goodyear, the turnover increased partly due to currency-exchanges and partly due to an improved product-mix. CEO Keegan is of the opinion that the efforts of the last months are bearing fruit. Nevertheless the fact is that the company disappointed again on the full line.

21st November 2003/by Tyrepress Editors

Goodyear asks for more time (update)

The deadline for Goodyear to release its financial results for the third quarter has been extended from last Friday to this Wednesday, after the tyre maker asked the Securities and Exchange Commission for more time to finalise the figures. Goodyear also asked for more time to complete the restatement of its accounts for the past five years. The company has indicated that its third quarter loss will be in the order of $106 million, or 60 cents per share, which is higher than some analysts forecast. The loss will be Goodyear’s eighth quarterly loss in the past 12 quarters and the company says that its loss for the first nine months of this year will be between $310 million-$335 million. A Goodyear spokesman would not comment on whether the 3Q figures would include any special charges covering factory closures or other restructuring costs.

18th November 2003/by Tyrepress Editors

BMW meets expectations

BMW’s 3Q results were in line with analysts’ expectations, with revenue down slightly (0.3 per cent) at 9.945 bn Euro and operating profit eight per cent higher than expected, at 762 million Euro. On the positive side, the product mix improved, with increased volume for the 5-series and X5, while on the negative side, R&D costs increased as a percentage of sales, reaching 5.4 per cent.

6th November 2003/by Tyrepress Editors

Good 3Q results from Nokian

Nokian Tyres has put in an impressive third quarter performance, with better-than-expected operating profit of 21.7 million Euro, giving an operating margin of 16.6 per cent. The company increased its market share in Nordic countries to 31.5 per cent. These countries account for two-thirds of Nokian’s sales. The Finnish manufacturer also increased sales of winter and high performance tyres.

28th October 2003/by Tyrepress Editors

Backlash to Goodyear profit re-statement

The revelation by Goodyear that it has overstated profits by $100 million over five years has led to deep concern among investors. One shareholder filed a lawsuit, alleging that profits were deliberately mis-stated in order to maintain a high share price. The day after Goodyear’s announcement, shares fell by 19 per cent, eventually recovering to close nine per cent down at $6.19. The episode underlines the uneasy relationship between Goodyear and its investors, with some analysts wondering whether it will cause a delay to the promised issue of new stocks and bonds.

27th October 2003/by Tyrepress Editors

Goodyear to re-state financial results

Goodyear is to re-state its financial results for the years 1998-2002 and for the first two quarters of this year. This is due to the implementation of a new accounting system in 1999 and errors in inter-company billing systems. The adjustments will not affect Goodyear’s cash position, nor its access to credit facilities. Another effect is that Goodyear is providing estimated 3Q results, rather than a detailed announcement. The estimate is for a loss of between $90-$115 million on sales of $3.9 billion and this figure includes rationalisation charges of $56 million for a factory closure and employment reductions in North America and Europe.

23rd October 2003/by Tyrepress Editors

Citroen recalls C5 aluminium wheels

Citroen is recalling 900,000 aluminium rims, fitted to 180,000 C5 models sold before May this year, as a preventative measure. The wheels were manufactured by Michelin subsidiary Kronprinz (Solingen/Germany), who will bear the cost of producing replacements. The recall will be handled via the Euromaster and Viborg chains and analysts estimate that the total cost will be over 20 million Euro.

23rd October 2003/by Tyrepress Editors

Car tyre sales in Poland reach record

The total number of car tyres sold in Poland in the first nine months was a record 5.4 million, or eight per cent higher than the same period last year. Sales of tyres H-rated and above grew by 21 per cent, and off-road vehicle tyre sales were up 54 per cent. The biggest sector – budget tyres – saw sales rise two per cent and winter tyre sales were up 13 per cent. Analysts expect the figures to have positive effects on the share prices of the two tyre companies on the Warsaw Stock Exchange; Stomil Olsztyn and Debica, which has a market share of over 50 per cent. Also, as exports account for the majority of their turnover, the two companies will benefit further from the strong Euro.

17th October 2003/by Tyrepress Editors

Ford 3Q figures better than expected

Ford’s third quarter figures exceeded analysts’ forecasts, although they were still in the red. The company made a net loss of $25 million, compared with a loss for 3Q 2002 of $326 million. Turnover was down to $36.9 billion, from $39.3 billion a year ago. Automotive sales in North America lost $116 million and worldwide, the automotive loss was $609 million. Away from vehicles, Ford Credit reported a record net income of $504 million for 3Q, up from $294 million for 3Q 2002.

17th October 2003/by Tyrepress Editors

German Recovery To Fuel Tyre Market Growth

Industry analysts expect the German automotive sector to recover in the final quarter of this year, having a beneficial impact on tyre suppliers. The high performance tyre market is showing growth of over 20 per cent and the winter tyre market will see double-digit growth. These factors, combined with more favourable raw material prices, should mean an overall growth of seven per cent in the European tyre market, the analysts predict.

30th September 2003/by Tyrepress Editors

Goodyear declares agreement with the steelworkers

Today at 10 a.m. (New York time) Goodyear CEO Robert Keegan and the president of the North American Tire Division, Jonathan Rich, will explain to journalists and analysts the details of the newly ratified contract agreement with the United Steelworkers of America (USWA). The management describes the agreement as being “fair and innovative”. It is expected that Keegan and Rich will comment on the company’s North American tyre business in quarter three where insiders don’t detect any improvements; and indeed the general conditions are not beneficial to the turnaround plan. For example the material costs are rising and will contribute to another quarter with high losses. All signs indicate that Goodyear’s figures will be worse than last year’s.

22nd September 2003/by Tyrepress Editors

Continental back in DAX after seven years

After a seven-year gap, Continental AG, Hanover, is back in Dax. On September 22 the international automotive supplier will return to the German’s stock market’s blue chip index. The announcement was made yesterday by the Deutsche Börse AG in Frankfurt/Main. Continental, a founding member of the index, thus becomes the first company in Dax’s fifteen-year history to stage a comeback into the circle of Germany’s 30 largest companies.

20th August 2003/by Tyrepress Editors

Continental Banks On Winter

Business analysts report that Continental is running its winter tyre production at full capacity (70,000 tyres/day), having started production earlier in the year than usual. The estimate is that around 12 million winter tyres will be produced for the coming season. Conti has also introduced an enhanced order and logistics system, which should ensure that fill rates are well over 80 per cent.

19th August 2003/by Tyrepress Editors

Continental Results Exceed Expectations

Continental’s 2Q results have exceeded the forecasts of industry experts.
Compared with 2Q 2002, turnover was down 3.4 per cent to 2.825 billion Euro
(2.925 bn), but operating income rose 11.3 per cent to 216 million Euro
(194 m). The group’s operating margin was 7.6 per cent and, while the car
tyre and truck tyre divisions were slightly below this (6.7 and 7.4 per
cent). ContiTech and Continental Automotive Systems achieved 8.5 and 9.0
peer cent respectively. Conti’s CFO Dr. Hippe was cautious about the
second half of the year, although he said that annual operating profits
could “considerably exceed” the stated target of 700 million Euro.

6th August 2003/by Tyrepress Editors