In a press release, Carlisle Tire & Wheel has confirmed production will end at its namesake Carlisle facility before the end of 2010. News of the site’s impending closure was first announced in July 2009 and relocation of production to a plant in Jackson, Tennessee began last April. Following the factory’s closure Carlisle’s 24,000 square metre distribution facility will remain operating in the town.
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.
MAM Software Ltd has held pride of place as the Aftersoft Group’s largest subsidiary of, and the significance of the automotive industry computer systems and data solutions supplier can be seen in the decision to rename the parent company; the Aftersoft Group has been rebranded as MAM Software Group, Inc.
The tyre maker giveth, the tyre maker taketh away….On April 14, Michelin North America announced it will add retreading operations to its aircraft tyre factory in Norwood, North Carolina. The official press release, however, did not mention that the expansion of Norwood operations was taking place parallel to plans to end operations at its existing aircraft tyre retreading facility in Kansas City.
At the end of a turbulent 2009 analysts of Plimsoll are predicting 45 UK tyre manufacturers and distributors will be struggling to see 2010 out: “Having clung on through the bad times many of these struggling companies are going to run out of time and fail just before the recovery really takes hold. Sadly, some of them are just too weak to carry on and there will be a spike of failures in the New Year. On the flipside, their demise will bring a welcome reduction in competitive pressure for those left”.
Pattison is convinced the market is due a prolonged period of consolidation with the number of companies in trouble leading to heightened takeover activity. He explains: “With too many companies chasing weakened demand it is inevitable that there are likely to be a number of high profile mergers and takeovers. In all honesty it’s long overdue. Once demand started to flag it was inevitable companies would be caught out. This period of consolidation is needed to sort out the dead wood. We have named 21 companies as the best acquisition prospects in the market”.
The promoter of Automechanika 2010 reports that this year’s fair is defying the crisis. The number of registrations received for the exhibition to date has exceeded all expectations, reports Messe Frankfurt. With still over a year to go, registrations have been received for a significantly greater exhibition space – altogether more than 100,000 square metres – than at the comparable time before the last event.
Continental reported mixed news in its half-year financial results. Sales are down 31.6 per cent to 9.063 billion euros from 13.254 billion in the same period in 2008, but the company’s press release was keen to play up its Adjusted earnings before interest and tax (EBIT) figure of 248.7 million euros, representing an effective return to profitability, albeit with a figure considerably down from 2008’s first half Adjusted EBIT figure of 1.184 billion euros – of course, in the context of the worldwide financial crisis, this drop is less than surprising, and the positives to be gleaned from this years figure are numerous. (“Adjusted” is defined by Continental as the EBIT figure, “before amortization of intangible assets from PPA, changes in the scope of consolidation, and special effects, including severance payments from the worldwide cost-cutting programme in 2009.”)
This season, two new tyres are being added to the Bridgestone Blizzak line: the Bridgestone Blizzak DM-V1 and LM-60, each suited for vehicles ranging from light trucks and SUVs to sports cars and sedans. The Bridgestone Blizzak DM-V1 will be available in 46 R-speed-rated sizes ranging from 15 inches to 22 inches and 75-45 series. Replacing the DM-Z3, the DM-V1 is designed to disperse surface water and improve grip. A directional tread pattern and 3-D sipes enhance dry performance and continuous lug design and center tread grooves increase traction in the snow and ice, according to Bridgestone.
Designed in response to unique road conditions in the US and Canada, the Blizzak LM-60 incorporates continuous lugs and zigzag sipes to improve snow and ice traction. Circumferential grooves channel water out of the tyre’s footprint area to resist hydroplaning and a directional tread pattern and 3-D sipes enhance dry performance of the LM-60, Bridgestone said. Available in 34 H-speed rated sizes from 17 inches to 20 inches in the 60-35 series, the LM-60 consolidates existing Blizzak tyres into one H-rated tire line. This consolidation includes the Bridgestone Blizzak LM-18, LM-22, and the LM-25. (Tire Review/Akron)
UK chancellor, Alistair Darling announced in the Budget that UK fuel duty will increase by two pence per litre on 1 September 2009, and will be followed by an additional penny – in real terms – every year between 2010 and 2013. The measure is designed to “support the public finances, while also driving the move to a low-carbon and resource-efficient economy”. The Budget predicts that the move will “save 2 MtCO2 per year by 2013-14”, while also providing additional funds for “medium-term fiscal consolidation” (otherwise known as propping up the public coffers with your hard-earned).
Germany’s Beru Group have posted sales revenue of 230.4 million euros in the first half of 2008, a 2.77 per cent growth on the corresponding period of 2007. The main sources of revenue, the company reports, were the Aftermarket segment and the Electronics and Sensors division. Profit from ordinary activities (EBIT) reduced 35.2 per cent due to one-time special items and amounted to 15.8 million euros. Excluding the special items, adjusted EBIT amounted to 23.1 million euros, equivalent to an adjusted margin of 10.0 per cent. Beru’s profit of 12.3 million euros during the period was also lower than in the first half of 2007, when profits of 18.5 million euros were achieved.
Pirelli has begun to negotiate the buying out of minority shareholders in its Turkish units Turk Pirelli Lastikleri – which supplies commercial and passenger car tyres – and Celikord, a steel cord manufacturer. The Italian tyre giant owns 69 per cent and 51 per cent of the companies respectively and is looking to consolidate in the growing, strategically-important Turkish market through full ownership. Pirelli has been present within the nation for 50 years.
Financial news sources report that Pirelli is yet to release a statement on the matter, or of any details of the performance of the firms subject to buyout bids.
The phrase “consolidation period” always sounds like a harbinger of doom for workers in any industry, so a new report on the UK tyre industry suggesting that this is exactly what lies ahead in the months to come can only suggest the onset of job losses in the sector.
The third annual Plimsoll Analysis, presented this week, suggests that the industry will lose 2373 jobs, in line with the UK economy’s “prolonged and bumpy landing”, which – a British Chamber of Commerce survey suggests – will see unemployment rise by 300,000. The report individually analyses the UK’s leading 200 companies, assessing their chances of survival and possible precautionary measures in the lacklustre market conditions.
According to Plimsoll Publishing Ltd’s latest report, zero growth, sliding profits and escalating debts have pushed a third of the UK Tyre Manufacturers & Distributors industry to the brink of failure. The report says “consolidation is essential as supply is outstripping demand. All companies are having a difficult trade off between protecting margins and appeasing price sensitive customers.”
David Pattison, senior analyst on the project, comments “A great deal has been written on the general slow down in the UK, but until now no one has measured the impact on the tyre manufacturers & distributors market and crucially who is most exposed.”
TPMS provider SmarTire Systems has named David A. Dodge as the company’s interim chief financial officer following the resignation of Jeff Finkelstein, who had served in the role since 2002 before leaving to “pursue a new opportunity”, to quote SmarTire. Mr. Dodge, whose appointment was announced on April 10, was formerly vice president and CFO of software development company NeoMedia Technologies, a position he held between 2002 and 2007. Before joining NeoMedia, Mr. Dodge was an auditor with Ernst & Young LLP. Dodge, aged 33, holds a B.A. in economics from Yale University and an M.S. in accounting from the University of Hartford, and is also a certified public accountant.
Hankook Tire’s share price has “jumped” 5.4 per cent following an upgrade from Morgan Stanley. The South Korea-based tyre manufacturer’s share price rose to 15,500 won at closing on 20 February, the largest gain since 18 December. The national Kospi index dropped 1.9 per cent. Morgan Stanley raised its rating on Hankook to “overweight”’ from “equal-weight”’ in a report dated today. “While the market seems nervous on higher raw material prices, we are more comfortable with the company’s ability to protect its margin,” Seoul-based market watchers, such as Jason Kang wrote. “The industry has been maintaining pricing power” through consolidation.
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.
