Hannover-based Continental AG is a leading automotive supplier and – according to the company – is “the choice of leading car manufacturers, offering award-winning tyres that deliver responsive braking in all weather conditions.”
Continental reports the exclusive fitment of tyres featuring its ContiSeal technology on the latest model Volkswagen Passat CC. ContiSportContact 3 tyres featuring the technology are now being factory-fitted on the luxury Passat model in size 235/40 R 18 95 W XL.
Analysts at Deutsche Bank has upgraded Continental AG’s stock rating to “buy” after raising its earnings per share (EPS) estimates by more than 20 per cent for 2010 and 2011. According to the analysts the revision is entirely attributable to better volumes: “With car production in the second quarter close to the first quarter, our new second quarter adjusted EBIT estimate is 540 million (versus 400 million euros previously) and our full year adjusted EBIT is upgraded by 13 per cent to 1.87 billion euros (consensus: 1.75 billion).” Writing in an investor’s note published on 11 June, the analysts explained that this corresponds to an EBIT margin of 8.1 per cent and to an adjusted EPS of 3.9 euros, 8 per cent above consensus.
Shares in tyre manufacturers outperformed most of the various European OEMs’ stock between 26 April and the end of May, in the wake of the Greek debt crisis. That’s the verdict of Deutsche Bank analysts, who wrote that tyre manufacturer’s resilience has on the whole been supported by their aftermarket sales.
In an investor’s note published on 28 May, the analysts pointed out that share prices in general dropped by an average of 12 per cent, in line with the market, with “a significant discrepancy” in the automotive sector: “On one side, the share price of tyre companies (namely Michelin, Continental and Pirelli) and of German OEMs (BMW, Daimler, VW) has been very resilient. On the other side, mass market OEMs (Fiat, PSA and Renault) have underperformed massively,” the report read.
Tenneco Inc. is to supply aftermarket exhaust systems to Unipart, the UK's largest independent automotive parts supplier. "We are pleased to partner with Unipart, to expand our reach in the UK with the largest distributor of exhaust products in this important market," said Hari Nair, president, international, Tenneco. "This relationship positions both companies for significant aftermarket emission control growth by combining the strength of Unipart's customer service focus and high consumer recognition with Tenneco's powerful aftermarket brands and reputation as a leading original equipment supplier."
John Neill, Unipart Group CEO, added: "Working in partnership with one of the world's largest and most successful original equipment manufacturers further strengthens Unipart Automotive's position as the number one exhaust choice in the UK aftermarket. We are the best known brand for automotive components and our partnership with Tenneco demonstrates our commitment to providing the best trade partnership to our customers across our extensive branch network."
Continental Tyre Group has announced the appointment of Darren Meikle as truck sales manager based in Southern Ireland. According to the company, this new position has been created to provide customers with a dedicated account manager in their immediate area. Darren will be responsible for overseeing the requirements of dealers and fleets in the Republic of Ireland, working closely with colleague Noel McGrath who has responsibility for Northern Ireland and the ROI border counties.
Darren, 35, joins Continental with over 10 years experience in the transport industry originally working with Irish Shell (now Topaz Energy) within the Fuel Cards team and from there taking on responsibility as truck sales manager for Advance Pitstop.
Reifen 2010’s first day saw Reifen Innovation Awards presented to three “pioneering solutions” to tyre business quandaries. The “Oscar of the tyre sector” was presented by Messe Essen and Bundesverband Reifenhandel und Vulkaniseur-Handwerk (Federal Association of the Tyre Trade and the Vulcanisers' Skilled Trade) on 1 June to Rema Tip Top for its RCF tyre repair plaster, to Mayerosch Off Road for its off-road professional partner programmes, and to Continental for the “optimising potential” of its e-invoicing system.
As an official sponsor of the 2010 World Cup, Continental AG is not missing a trick when it comes to exposure. On 1 June, less than two weeks before the world’s highest profile footballing tournament kicks off, the automotive supplier has equipped all 32 team buses with its HSR 1 premium bus tyres.
According to the company, the HSR 1 was designed especially for use on motorways and regional transport – perfect for shuttling players from game to game, they say: “Continental is therefore making a major contribution to the safety of the world’s best footballers because the tyres are the only connection with the road and have a contact patch that is just the size of a postcard,” said spokesman Alexander Lührs.
Continental’s solid industrial tyres have been continually developed and manufactured in Korbach, Germany for over one hundred years alongside the regular implementation of process and product improvements. Now, the company says, a large step forward recently introduced in the site’s manufacturing processes “demonstrates Continental's technological leadership in the field of industrial tyres”.
Karl-Thomas Neumann, the former chief executive of Continental AG, will head Volkswagen's China operations from September. The news sees Neumann, an experienced and respected manager, electronics engineer and expert in hybrid and electric cars return to his previous employer after Conti in the midst of a power struggle with major shareholder Schaeffler Group last August.
Continental AG has added another championship to its football portfolio. In addition to its global sponsorship of the 2010 FIFA World Cup in South Africa and 2014 event in Brazil, the tyre maker has become a ‘premium’ sponsor of the DFB (German Football Association) Cup in its home market.
A Financial Times report published today suggests that Brazil could overtake Germany in terms of vehicle sales as early as this year, depending on a predicted 20 per cent decline in Europe’s leading market. Last year, Brazil was the fifth largest market for new vehicles, buoyed by its increasing wealth based on resources, the newspaper says. Quoting senior analyst at PwC Michael Gartside, John Reed writes that the light commercial vehicle market is crucial to this prediction, with Germany still larger in terms of passenger car sales.
Chop Swee Hoe and Continental Sime Tyre Sdn. Bhd. (CST) opened a new BestDrive Continental Passenger Car & Light Truck (PLT) Centre in Malacca (the third smallest state in Malaysia) on 23 May, 2010. According to Choong Kee Seng, sales and marketing director of CST, the BestDrive PLT centre empowers partners with the ability to make use of this brand to become positioned as uniform, specialised tyre dealers catering for the premium customer segment. “We have now completed a total of 18 BestDrive Continental PLT centres throughout Malaysia, with the opening being done in stages,” said Choong Kee Seng.
Ian Burden has been appointed to the role of industrial sales manager for Continental Industrial Tyres UK’s South region. Burden, a qualified mechanical engineer who has worked in the industrial materials handling industry for more than a quarter of a century, joins Continental from NACCO Materials Handling Group. In his new position, Burden will report to general sales manager Leon McMahon.
The failure to address a tyre-related safety weak spot may end up costing the ‘father of the Concorde’ a suspended prison sentence. Henri Perrier, now 80 years old, directed the Concorde programme at Aerospatiale from 1978 to 1994. French proescutors have accused him of ignoring warning signs from a string of incidents involving Concorde airliners before the crash near Paris in July 2000.
Four truck tyres from Continental Tire the Americas’ General Tire brand have been verified as low rolling resistance products by the US EPA SmartWay Transport Partnership. The tyres in question are the S581, S371, D660 and ST250: The S581 is a long-haul steer tyre featuring an 18/32-inch five rib tread design. The S371 long-haul steer and drive tyre has 20/32-inch tread depth. Its tread compound is intended to provide long highway miles while resisting cuts and tears in off-highway use. The D660 is a long-haul drive tyre with 30/32-inch tread depth and a closed shoulder tread design for long, even wear. The ST250, a long-haul trailer tyre features a 13/32-inch tread depth, stone ejection system and patented VAI visual alignment indicators to alert drivers of tracking problems.
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