Tyre and wheel business news from the segment’s most important companies.
Carlisle Companies Incorporated reported net sales from continuing operations of US$709.4 million for the quarter ended June 30, 2010, an 11 per cent increase from the second quarter of 2009. Income from continuing operations decreased 32 per cent to $38.9 million, or $0.62 per diluted share, and net income was $38.6 million, compared to net income of $55.5 million for the second quarter 2009.
Continental is expanding its football sponsorship with a deal involving one of the world’s best-known teams. Together with majority shareholder the Schaeffler Group, the German tyre and automotive components manufacturer has become sponsoring partner of FC Bayern Munich. Recently the companies and the club signed an agreement that runs until 2015.
Pirelli & C. S.p.A. has given details of what will be carried out in accordance with the resolutions regarding the reverse stock split of ordinary and savings shares adopted at its Extraordinary Shareholders’ Meeting on 15 July 2010. The company intends to begin the reverse stock split on July 26 and carry out the transaction according to the details outlined in the official Pirelli statement printed below:
Years of work in the field of tyre recovery and in the tyre industry as a whole has earned Michelin Tyre PLC managing director Jim Rickard a lifetime achievement award from the Tyre Recovery Association (TRA). Rickard is the first ever recipient of this award from the association, which he received at the recent TRA annual dinner in front of more than 100 distinguished guests from the tyre recovery industry.
ETRMA, the European Tyre & Rubber Manufacturers’ Association, claims that the market for tyre derived products has become one that is “sustainable and economically viable.” Despite that fact that the recession is having a negative impact on the supply of end-of-life tyres to sorting and recycling companies, the ETRMA confirms that a positive trend in the management of end of life tyres is occurring, and the European recovery rate has now reached 96 per cent. “This achievement also promotes Europe as one of the most advanced regions in the world in the recycling and recovery of tyres,” claims the ETRMA in a press statement.
Although its year-on-year sales share of the group total slipped from 11.1 per cent in the second quarter of 2009 to 10.7 per cent in quarter two of this year, sales at Trelleborg Wheel Systems grew two per cent year-on-year during the three month period. Sales for the division came to SEK 795 million (£70.7 million), a figure that represents eight per cent organic growth counterbalanced by negative six per cent exchange rate effects. EBITA margin in the three months between April and June 2010 was 10.3 per cent, down from 13.8 per cent a year earlier. The Swedish company states that markets outside North America and Europe recorded positive performance for volume and earnings.
Michelin has signed two 10-year contracts with the airlines Air France and KLM. Under the terms of these, Michelin tyres will be fitted on around 425 aircraft operated both by the Air France-KLM Group and by other airlines for which Air France and KLM provide maintenance services. These aircraft include 37 Boeing B777-300 ERs, 66 Boeing B737-NGs, 145 Airbus A320s and three Airbus A380s.
Hankook Tire reports its profits in Korea jumped 22.4 per cent in the second quarter of 2010 to KRW 822.3 billion (£443.1 million), a figure the Korean tyre maker claims to be its highest ever quarterly result. This quarter high water mark was achieved on the back of a 13.0 per cent year-on-year increase in global consolidated sales, to KRW1.4 trillion (£754.4 million) and a 22.7 per cent year-on-year growth in operating profit to KRW 177.7 billion (£95.7 million).
The Schaeffler Group – the German company best known to us for its dealings with Continental – has given news of its plans to carry out further expansion in Asia, an area in which it says localisation is opening up additional opportunities for growth. Investments totalling 300 million euros will be made in this region, including the construction of two factories in China to supplement the existing manufacturing facilities there which are operating at full capacity, and one factory in India. Construction of the new factories is to be completed by 2012. Research and development capacities in Japan and India will be expanded as part of the investment, and production capacity at the company’s eleven existing manufacturing locations (in China, India, Korea and Vietnam) will also be increased.
A three-year cooperation agreement recently signed between Michelin and German agricultural machinery manufacturer Claas is expected to strengthen the two company’s collaboration in several areas, such as research, development and market intelligence. According to Michelin, the agreement demonstrates the two partners’ “confidence in today’s changing farm markets and their shared commitment to developing their operations in this sector.”
At an Extraordinary Shareholders' meeting held on July 15, Pirelli C. & SpA shareholders approved the separation of Pirelli Real Estate from the Pirelli Group by way of proportional assignment to ordinary and savings shareholders. These shareholders will be assigned a total of 487,231,561 ordinary Pirelli RE shares that are currently held by Pirelli & C. To this end, the shareholders approved a reduction of the share capital in an amount equal to 178,813,982.89 euros, a sum that corresponds to the value of the Pirelli RE stake being assigned and was determined on the basis of the official Pirelli RE share price as of 14 July 2010.
Michelin's Investor Relations Department has updated its company consensus. The figures presented in the consensus are based upon data published by financial analysts who monitor the Michelin share, or directly collected from them. The average of the analysts’ responses anticipate full-year 2010 net sales of 16,772 million euros, increasing to 17,979 million in 2011 and 18,832 million euros in 2012. The analysts’ average figure for operating income and operating margin in 2010 is 1,138 million euros and 6.8 per cent respectively. For 2011 these figures are 1,436 million euros and 8.1 per cent, and 1,696 and 9.0 per cent for 2012. The average estimate for net income this year is pegged at 637 million, while in 2011 and 2012 net income is expected to rise to 870 million and 1,041 million respectively.
Hankook Tire has established a Global Education Center in Korea, a facility it says is intended to “collaborate and foster the company's production system.” Located within the tyre maker’s Daejeon plant, the new centre is intended to enhance the skills and abilities of staff working in production and other positions at factories in Korea, China, Hungary, as well as in plants Hankook intends to set up in the future. Through the Global Education Center, Hankook Tire expects to strengthen collaboration between members of its global production network, thereby ensuring production quality is of a unified standard.
A reorganisation of Evonik’s carbon black activities has led to the founding of Evonik Carbon Black GmbH as a legally independent management company under the umbrella of Evonik Industries. The new company came into being on July 1 with Jack Clem in the position of CEO and Rainer Wobbe serving as CFO. The company’s operational headquarters is currently located in Frankfurt, Germany, however it will move to the city of Hanau on October 1. Evonik says the existing carbon black product portfolio and customer relationships will not be affected by the spin-off.
In a bid to provide an additional channel of communication with retailers and consumers, Maxxis Tyres (UK) has turned its attention to the social media scene. The tyre maker has set up a Facebook page to raise its profile and enable everyone associated with the company to keep up to date with latest developments, particularly in relation to its sponsorship deals and promotional activities in support of the performance/tuning market.
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