Tyre and wheel business news from the segment’s most important companies.
Shares in NYSE listed tyre maker Cooper Tire & Rubber Co. gained seven per cent yesterday following the publication of news regarding a potential acquisition by India’s Apollo Tyres. Neither Cooper Tire nor Apollo Tyres has commented on the acquisition reports.
With tyre labelling virtually upon us and with TPMS kicking in at the same time (see the forthcoming October magazine's Company News section for more coverage on this), the market needs to know where it stands with regards to enforcement…as soon as possible. We know the Department for Transport has got the whole West coast rail franchise fiasco fallout to deal with, but without proper attention the strength of the imminent labelling legislation could be seriously undermined. Indeed many questions are already being raised. This point is emphasised by a photo currently doing the rounds on the Internet. It is small and of mediocre quality, but what is clear about the image is that it portrays two Chinese-produced tyres of the same size model, speed and load rating on top of each other in a warehouse. A common sight you might think until you realise that the two apparently identical products bear two different European labelling results. The first BB-71 and the second CC-71.
VOSA has announced that the MOT certificate must now record the mileage of a vehicle for the current test, as well as the mileage recorded on the last three certificates. This change comes into effect on 18 November 2012 and means a more accurate vehicle history can be relayed to the potential buyer of a used car.
Leading international branding consultancy Interbrand has just published its 13th Annual Best Global Brands report, listing the world's 100 most valuable brands. However, it has to be pointed out that despite the size of some of the industry’s leading brands – and despite their ability to communicate their various brands online (see separate article) – there are no tyre brands in the top 100 this year.
Over the summer, Michelin reviewed its capital expenditure programme and 2015 financial outlook. The review followed on from the Group’s interim 2012 earnings performance, which Michelin describes as “robust” and says reflected its strategic vision, competitive strengths and management.
The winners of a silent auction enjoyed a trip to the Formula One in Monza last weekend where the prize winners received paddock passes and hospitality courtesy of Italian tyre firm Pirelli. The auction was held in July at Evolution in Battersea as part of Great Ormond Street Hospital Children’s Charity’s annual Formula One party. Pirelli donated two paddock passes to the individual who placed the highest bid on the night.
Apollo Tyres is one of the brands featured in the CoolBrands book Around the World in 80 Brands, which aims to share stories with opinion formers around the world. Part of an overall concept that includes online seeding and sharing via social media, guest lectures at universities and workshops, the book includes articles about visionary people, smart brands and trendy destinations. “Apollo Tyres is pleased to be part of this global storytelling project,” comments Rob Oudshoorn, CEO of Apollo Vredestein.
This is a short extract. Tyrepress and Tyres & Accessories subscribers can log in below to read the full article.
If you are not yet a Tyrepress or Tyres & Accessories subscriber, you can change that here.
Becoming a member has benefits such as:
On 5 September Michelin updated its tyre market statistics, and reported a four per cent year-on-year upswing in Europe’s (including Russia and Turkey) original equipment passenger car tyre market for July 2012. Year-to-date, however, the segment market is still down three per cent. A six per cent decline was reported for Europe’s replacement market passenger car tyre business. Replacement sales are down ten per cent year-to-date.
For the first half of the 2012 financial year, Giti Tire Corporation has reported revenue of RMB 2.06 billion (£205.0 million), a year-on-year decrease of 7.0 per cent. The Giti Tire Pte. Ltd. subsidiary says this decline was a combined effect mainly attributable to decrease in sales volume and increase of average selling price. Lower sales mainly reflected a slowdown in China related to the construction and property sectors, coupled with measures undertaken by the Chinese government to restrict credit availability. The export market decrease was largely brought about by the financial crisis in European markets, Giti Tire Corporation added.
The route between Pirelli’s UK facilities in Burton-on-Trent and Carlisle is well trodden by Derby-based haulier ATL, and the company has just put three of its newest vehicle acquisitions to work on the company’s most arduous contract. The Mercedes-Benz Axor 2543 tractor units are consistently fully laden and rack up 8,600km a week carrying raw materials and finished tyres between Pirelli’s locations.
Standard & Poor’s has upgraded Indonesian tyre maker PT Gajah Tunggal Tbk’s debt rating from ‘B’ to ‘B+’. Explaining its decision to do so, the financial services company observes that Gajah Tunggal’s competitive cost position and leading share in the Indonesian tyre market temper any weaknesses that may arise from the company’s “aggressive” capital structure, limited financial flexibility and the cyclical and cost competitive nature of the tyre industry.
On 23 August Polish chemical manufacturer Synthos SA informed the Warsaw Stock Exchange it has signed a supply deal with Goodyear Tire & Rubber. The agreement is valid until 31 December 2012 and covers the supply of solution styrene butadiene rubber and emulsion styrene butadiene rubber. The contract is valued at approximately PLN 3.74 billion (£709 million); the price to be paid is based upon a formula that takes into account the market price of raw materials.
During the second quarter of 2012 Nexen Tire achieved net sales of KRW 433.3 billion (£242.8 million), the Korean tyre maker reports. This result represents year-on-year growth of 29.8 per cent. Gross profit, at KRW 118.6 billion (£66.4 million), was up 49.2 per cent year-on-year and a margin of 27.4 per cent was reached. Operating profit amounted to KRW 51.8 billion (£29.0 million), up 90.1 per cent year-on-year, and a margin of 12.0 per cent was achieved. Ordinary profit came to KRW 42.7 billion (£23.9 million), 51.8 per cent higher than in the corresponding quarter of 2011. EBITDA, at KRW 72.3 billion (£40.5), was up 62.2 per cent year-on-year and had a margin of 16.7 per cent.
The Irish Independent reports Michelin has acquired an interest in Irish firm Async Technologies, Ltd., provider of the TyreCheck range of hardware and software solutions, for 2 million euros. The newspaper writes that new filings with Ireland’s Companies Registration Office show Async Technologies to have recently finalised a 2 million euro investment from the French tyre maker, who received 27,185 Async shares in return. The Irish Independent notes that these shares, valued at 74.57 euros each, give Michelin a “significant stake” in Async Technologies.
The nature of business communication has changed profoundly over the half century since Starco was founded, both in terms of technology and how the workplace as a whole has evolved. Like many long-established businesses, Starco has progressed from the world of the typewriter and the fax to a world in which communication and the availability of information has become the most essential business operating parameter. During the last few years the company has operated legacy systems dedicated to separate administrative, communication and sales functions, but now Starco says it has recognised that implementing a unified online IT platform is essential for the company’s global development.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
