BERU increases revenues by more than 16%
In the 2003/04 financial year (ending March 31, 2004), BERU Aktiengesellschaft (Ludwigsburg) increased its sales revenues by 16.4% from €304.5 million to €354.5 million.
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Minekazu Fujimura named Chairman, CEO and President of BSEU
Career TracksAs from April 2004, Minekazu Fujimura has taken up the position of Chairman, Chief Executive Officer (CEO) and President of Bridgestone Europe (BSEU).
Canadian Tire up Q1 profit by 11 per cent
Product NewsCanadian Tire Corp. Ltd. reported an 11 per cent rise in first-quarter profit, fuelled by stronger store sales and consumers switching to its MasterCard product. The Toronto-based hardware and automotive products retailer saw its profit climb to 35.2 million dollars or 44 cents a share from 31.8 million dollars or 40 cents a year ago. Canadian Tire will continue to execute an aggressive growth strategy, including the testing later this year of a couple of “next generation” or larger format convenience stores at its gas bars, according to Wayne Sales, president and chief executive officer. “We have an inventory of about 100 Canadian Tire store sites today where we have excess land required for the store and parking, and in which we can open incremental gas bars, car washes and convenience stores,” he said. The company also plans to open 21 stores this year.
Discussions Begin Over Ziebart’s Successor Before He Leaves
Product NewsContinental’s deputy chairman of the board Wolfgang Ziebart is tipped as the hot favourite to become the new chairman of chip manufacturer Infineon, following the departure six weeks ago of the then chairman Ulrich Schumacher. In the meantime, news agencies are quoting from a letter, written by Continental’s supervisory board Chairman Dr. Hubertus von Grünberg to other board members, saying that he is working hard to ensure that the Continental Automotive Systems business unit (for which Ziebart is responsible) continues to be run successfully – and this before Ziebart has even left the company.
Toyota Honors Hayes Lemmerz with Supplier Award
Product NewsHayes Lemmerz International received three prestigious quality awards at the Toyota Motor Europe Manufacturing supplier awards ceremonies recently held in Brussels, Belgium.
Continental Profits Beat Forecasts
Product NewsGreater demand from customers and increased production in lower-cost areas helped raise Continental’s first quarter profits by 48 per cent – far higher than expected. 1Q net income was 129.5 million Euro (1Q 2003: 87.4 million), which was nearly 30 million Euro higher than predicted by industry analysts. Turnover for the period was up slightly too; from 2.82 billion Euros in 1Q last year to 2.99 billion Euros in the first three months of 2004.
Continental Looks Forward To EU Expansion
Product NewsContinental believes that the company is well-positioned to benefit from the eastward expansion of the EU in May, having pursued a policy of strategic investment in eastern Europe for the past decade. The company has invested upwards of half a billion Euro in the area and now has manufacturing facilities for tyres or automotive components/systems in the Czech Republic, the Slovak Republic, Hungary and Romania (due to join the EU in 2007), employing over 11,000 staff. Continental’s interest in eastern Europe is not restricted to the production advantages, as it views the new member states as potential growth markets for truck and winter tyres as economic growth for 2004 and 2005 in the area is forecast to be four per cent.
Cooper’s 1Q Results “Will Be Higher Than Expected”
Product NewsCooper Tire & Rubber has said that its earnings per share for the first quarter of 2004 will be around 30-34 cents per share; significantly higher than the forecast of 24-28 cents per share. The reasons are higher sales, a strong performance of Cooper-Standard Automotive and a smaller than expected impact of raw material prices. Cooper’s full 1Q results will be released on April 22nd.
Continental to bid for Phoenix
Product NewsContinental is to bid for Phoenix, the German manufacturer of automotive-related rubber products. Phoenix is based in Hamburg, has 10,000 employees and sales last year were 1.153 billion euro. Key products, accounting for around half of sales, are fluid handling hoses, conveyor belts and air springs. Industry experts estimate that the acquisition will cost 227 million euro. Net debt stands at 277 million euro.
Cooper wants to sell auto group
Product NewsCooper Tire & Rubber Co. is reported to want to sell off its automotive group. The automotive parts division accounted for almost half of last years sales. Cooper-Standard Automotive, based in Michigan, had revenues of about 1.66 billion US dollars in 2003. Cooper said it could use money gained from selling the auto unit to reduce debt or invest in tyre operations. Chairman Thomas Dattilo said the company may be better off concentrating on its tyre business and expanding overseas.
SmarTire Signs Agreement with Lexani Wheel Corp.
Product NewsSmarTire Systems Inc. has signed a distribution agreement with Lexani Wheel Corp., a premier manufacturer of luxury alloy wheels based in California. Lexani will bundle SmarTire’s tyre pressure monitoring system with its innovative Johnson line of custom wheels. Lexani wheels are sold through an extensive dealer base and are well known in the American automotive aftermarket, boasting a prestigious list of clients and countless award-winning show vehicles. A purchase order accompanied the distribution agreement.
Schroeder is Cooper Tire’s Financial Director
Product NewsGary C. Schroeder has been appointed director of financial planning and analysis for Cooper’s global tyre operations. Schroeder came to Cooper Tire from the Cooper-Standard Automotive where he had been serving as global director of cost and reporting since 2002.
NF Die Casting (Pty) Ltd. Takes on Hayes Lemmerz identity
Product NewsNF Die Casting (Pty) Ltd., a South African subsidiary of Hayes Lemmerz, has changed its company name to Hayes Lemmerz South Africa (Pty) Ltd., creating a stronger brand identity connection between the Corporation and its subsidiary. Hayes Lemmerz South Africa (Pty) Ltd., formerly NF Die Casting (Pty) Ltd., is a producer of cast aluminium wheels for the automotive industry. The facility is located in Alrode, near Johannesburg.
Hankook considers 500 million dollar Czech plant
Product NewsHankook Tire Manufacturing Co Ltd is considering investing up to 500 million Dolars to build a plant in the Czech Republic. This follows the decision of Hyundai to build cars in Slovakia. The area is rapidly becoming the centre of the new European automotive industry. Hankook Tire may be looking at other countries in the region but they are clearly considering the Czech Republic as an option. Hyundai announced on Tuesday that it will set up its factory in the north western city of Zilina, about 30 km from the border with the Czech Republic, where a number of foreign car part makers are already present.
Continental to tackle double-digit US losses
Product NewsDeutsche Bank (DB) met with Continental management at Geneva to discuss the North American situation. Continental highlighted to DB that like Cooper and Michelin they had high confidence that price increases in the NA market would stick, as increases in raw materials prices had to be passed on to end users. Continental also told BD that the company is strongly committed to tackle double-digit OP losses in the US passenger car tyre division. The company though believes that breaking even in the US in 2006 will remain challenging, as it is not simply a cost reduction issue. Continental also indicated the high growth in the Automotive System sector (electronics and ESP), which should enable the company to maintain a current high 8 per cent OP margin. DB felt that this showed Continental as a great company focused on cost reduction; “however, we believe much of this good news is already in the share price, which doubled last year.”
