Tyre industry jobs, appointments and personnel-related information.
Continental AG reports that 2012 was another record year for the automotive supplier. Despite slumping auto markets in Europe, the corporation reports in preliminary figures that it boosted 2012 sales by more than 7 per cent to approximately 32.7 billion euros. At around 10.7 per cent, the adjusted EBIT margin topped the previous year's figure of 10.1 per cent.
In the run-up to Nokian’s publication of fourth quarter financial results, some financial analysts are asking if the Finnish company’s earnings are losing traction. The reason is said to be that “decelerating Russian sales and an unexciting European winter tyre season are a recipe for disappointment”.
Indian tyre maker MRF Ltd has reported a 58.3 per cent drop in net profits during the quarter ended 30 September; profits declined from Rs 3,954.4 (£45.1 million) million in the corresponding quarter of last year to Rs 1,647.6 million (£18.8 million). The company said the lower profit results were the product of raw material price fluctuations plus increasing power and fuel costs. The depreciation of the rupee also played a role, said MRF.
There is a governance battle going on at the upper echelons of Italian tyremaker Pirelli, according to various news sources. According to the Financial Times, Marco Tronchetti Provera, chairman and chief executive of Pirelli has invited two private equity groups to buy out competing shareholders in what is being described as “an effort to shorten the chain of command at the group.”
Premier south east distributor of car parts SC Motor Factors Ltd, has accepted a significant investment from HgCapital. The investment will enable the company to accelerate plans to expand its current network. The company has strong links with The Parts Alliance, whose members include two other recipients of investment in order to expand their operations since August, CES (UK) and Allparts Automotive.
Tructyre Fleet Management has nearly doubled its size following the strategic acquisition of one of its competitors, the PK Commercial group of companies. Based just off the M3 near Winnall in Winchester, Trucktyre Fleet Management manages and maintains tyres on large commercial fleets of trucks and vehicles for customers such as large supermarkets, hauliers and other transport companies, principally covering the south coast up to the M4 and London and Weymouth to Portsmouth.
India’s Economic Times reports that Apollo Tyres has “put on hold its plans of going ahead with the acquisition” of Cooper Tire & Rubber Co. Tire Review writes that the newspaper, which first reported about the possible acquisition deal back in October, reported yesterday that “sources with direct knowledge” said the plan was put on ice because Apollo “did not get a favorable response to its qualified institutional placement (QIP) from the institutional investors who were worried about the end-use of the funds.”
Writing on the website AM Online (Automotive Management), Jeremy Bennett reports that Indian manufacturer Tata is showing an interest in Aston Martin. The article quotes a Birmingham Post source that Tata is “one of several potential buyers for Gaydon-based Aston Martin, alongside the likes of Toyota and Mahindra & Mahindra.”
Financial analysts have stated their concern that tyre manufacturer Pirelli reduced its performance projections in several key areas when publishing its 9-month results recently. However, at the same time Morgan Stanley market watchers in particular reassured investors that the reductions were unlikely to results in any “material downgrades” but did warn that the stock could be impacted by the lowered premium volume guidance.
Pirelli & C. SpA has reported sales revenues of 4,574.1 million euros in the first nine months of 2012, up 7.2 per cent from 4,265.8 million on 30 September 2011. Pre-tax profits (EBIT) are up 31 per cent to 592.8 million euros (compared with 451.2 million euros on 30 September 2011). During the same period EBIT margin grew to 13 per cent from 10.6 per cent on 30 September 2011. However the company also revised down a number of key projections.
While many markets in Europe continue to prove challenging for Italian brake manufacturer Brembo, Germany and the USA have continued to provide the company with enough growth opportunities to keep the company's revenues ahead of those at this stage in 2011. Overall, the company registered net profit up 59.8 per cent in the first three quarters (49 million euros), with sales up 10.5 per cent (1,045 million euros). Chairman Alberto Bombassei said he remained “convinced that the ability to innovate, along with a constant focus on quality, are the foundation of company’s success, even in a crisis scenario."
The Goodyear Tire & Rubber Company has announced that it will webcast its presentation at the 2012 Goldman Sachs Industrials Conference in Boston on November 13. During the presentation Darren R Wells, executive vice president and chief financial officer, will provide a business overview and discuss the company’s strategies.
Recent rises in fuel costs may hit the revenues of tyre, brakes and automotive spares suppliers, according to Moody's Investors Service comments published today (7 November 2012). According to the report, the potential loss of revenue is “credit negative” for rated automotive spare parts suppliers.
The biggest downside risk from a 5 per cent aftermarket contraction in Europe is seen at brake manufacturer TMD friction, which could feel a 3 per cent hit to its revenues in this scenario and Michelin which is expected to see revenues drop 1.8 per cent if this were to happen. However it is not just an aftermarket problem, Moody's expects that higher fuel prices could also affect suppliers that focus on automotive manufacturers.
Apollo Tyres has released its unaudited financial figures for the second quarter of the company's financial year 2012-13 (July to September). Net sales were up 18 per cent year on year at 33.7 billion Rupees (US$ 612.29 million), operating profit rose 55 per cent to Rs 3.8 bn (US$ 135.33 m) and net profit was up an impressive 96 per cent to Rs 1.5 bn (US$ 27.62 m).
Cooper Tire & Rubber Company has reported record net sales and operating profits in its third quarter 2012 financial results. According to the company, sales of US$1.1 billion (up 4 per cent) were a record. The company also reported record operating profit of $130 million, $82 million higher than in third quarter 2011 results and representing 11.8 per cent of net sales. Net income was also a significant improvement on last year’s $17 million, with the company posting a third quarter record of $74 million or $1.17 per share on a diluted basis.
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