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.”
During 2012 Continental sold some 20.1 million passenger car, 4×4 and van winter tyres in the European replacement tyre market, the company reports. This figure is approximately 300,000 units above what it sold in 2011 and was achieved despite a ten per cent drop in overall market demand. Altogether the company sold around 21.4 million winter tyres globally last year.
New research commissioned by Green Flag Breakdown reveals Brits have missed 51.4 million working hours in the last week as a result of the poor weather conditions. Over 8.5 million (18 per cent) British adults have been unable to work their contracted hours because of the adverse weather, costing employers an estimated £318 million.
Continental reports that a new feature related to its TPMS system has entered series production. The company says an Asian vehicle manufacturer now offers its customers a sub-function of Continental’s ‘Filling Assistant’ – feature that uses a motorist’s smart phone. An app on the phone omits a short ‘honking’ noise upon achieving optimal pressure during tyre inflation. The Filling Assistant function ensures that tyres always run on the correct pressure, even if they are filled using non-calibrated equipment.
German tyre maker and automotive supplier Continental has improved its debt maturity profile through the signing of a new syndicated loan agreement. Committed to by approximately 30 domestic and international banks, the credit amount has been reduced slightly. It now totals 4.5 billion euros and is split up into two tranches of differing duration – a 1.5 billion euro loan with a term of three years, and a five-year, 3 billion euro revolving credit line. For the new syndicated loan, Continental has been able to obtain the release of the asset collateral previously put up for financing and has also implemented “further simplifications” with regards to the documentation.
After keeping mum about it for quite a while, Continental has shared that its tyres play a key role in making the London Eye spin. The 442 foot (or 135 metre, for those reading this in metric) high Ferris wheel is spun by drive systems located in towers at each end of the boarding platform; these systems’ hydraulic motors rotate the wheel via friction rollers, and Continental HSR (Heavy Steer Regional) tyres fulfil this role.
Some 1,700 Continental motorcycle tyres sold in North America are the subjects of a voluntary recall. Based upon market feedback it has received, the tyre maker says that under certain service conditions the size 180/60R16 M/C 74H ContiMotion may experience uneven wear, groove cracking and in some cases belt lift, which can lead to a loss of inflation pressure and a potential loss of control. These service conditions have been observed on the rear tyre of Honda Gold Wing 1800 motorcycles, particularly under conditions of overloading and/or under-inflation. Continental adds that has not received any reports about accidents resulting from this condition.
The joint venture lithium-ion battery systems company formed by Continental and Korea’s SK Innovation, SK Continental E-motion, officially commenced operations earlier this month after gaining approval from the relevant authorities. Continental reports that “all relevant authorities have given unrestricted approval to the antitrust application submitted by the two companies” and that all provisions of the agreement signed with SK Innovation on 23 July 2012 have come into force.
With 2012 behind us, perhaps tyre dealers can look forward to a more prosperous 2013. That is certainly the view of analysts at Plimsoll Publishing Ltd, who recently predicted a year of growth. A new market report produced by Plimsoll, which looks into the financial performance of the UK’s largest 693 Tyre Dealers, found average growth was as high as six per cent. However the 2013 Tyre Dealers report concludes that this is by no means widespread as this successful growth is being driven by a quarter of the industry – an “elite” band of 190 companies to be precise.
Continental AG expects its full-year 2012 free cash flow to come in at around 1 billion euros. Speaking at an investor’s presentation in New York, Conti CEO Dr Elmar Degenhart upped its previous assessment of about 750 million euros by a third. The statement came as a surprise to financial analysts and apparently even for the CEO himself, who reportedly only found out in the last few hours.
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:
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.
After a year of steady sales increases in 2012, Conti says it is ready to ‘Attack’ in 2013 and is looking to maintain the company’s position as the UK’s fastest growing motorcycle tyre brand. UK Product mix demand has changed dramatically in the last few years and Continental believes its product range is well suited to the wide variety of tyres now being purchased.
In its more than four decades in the business, family-run Cambrian tyres says it has always taken pride in the quality and speed of the service it offers and the friendliness of its approach. This service is provided by a team that boasts an impressive 225 years of combined experience in the motorcycle and tyre industries. Cambrian says its team’s experience gives it a “massive lead” over its competitors when it comes to tyre, motorcycle, technical and industry knowledge; several of the company’s staff have worked at senior levels at motorcycle tyre manufacturers.
Continental has commented on the selection of the ContiWinterContact TS850 as one of Auto Express magazine’s Editor’s Choice 2012 products. Peter Robb, brand manager at Continental said: “We are delighted to have been commended by Auto Express. The ContiWinterContact TS850 has taken the winter market by storm. In a string of tyre tests in Europe, the tyre has consistently beaten the best to take top spot. This award from Auto Express is another testament to its outstanding performance.”
With the aim of further improving its financing structure and maturity profile, while enhancing its flexibility, Continental has refinanced its syndicated loan, which is due in April 2014. Within the scope of the planned refinancing, the loan volume is to be reduced slightly – to a total of 4.5 billion euros – and split up into two tranches with different maturities: a 1.5 billion euro term loan with a term of three years, and a five-year revolving 3 billion euro credit facility. Conti also intends to “ease the documentation complexity” through this refinancing.
Infinity’s ‘Win a Bentley’ prize draw, which has been running between September and November, reached its finale last week. Working alongside its UK distributor, Bond International, Infinity Tyres held the final prize draw at Bond’s head office near York, where members of the Infinity Europe team including Jorge Crespo (Infinity’s European General Manager) and Clive Mansfield (Sales and Marketing Manager) joined with Steve Tidmarsh, Finance Director of Bond International and Paul Palmer of Savoy Tyres to host the day’s events.
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.
