cost cutting Archives - Tyrepress

Posts

Goodyear EMEA: Transforming the organisation, optimising manufacturing and focusing the brand portfolio

Company News, International News

Repeated loss-making quarterly results paired with global cost-cutting and headcount-reduction efforts throughout 2023 mean Goodyear has, understandably, received more attention than usual. Most of this has come from our own research, in response to third-party action – such as Elliott’s now-infamous letter – and off the back of the aforementioned financial results. Since all of the above reasons for writing about Goodyear particularly impact Europe, in mid-October Tyres & Accessories visited the Goodyear EMEA headquarters in Brussels, Belgium, to hear more about exactly how executives are leading the business through its current tumultuous times. The group of executives Tyres & Accessories met with specifically included David Anckaert, Goodyear EMEA vice-president, consumer; and Troy Scully, vice president, communications and public affairs EMEA. Not only does such an opportunity give Goodyear the right-to-reply, it also provides additional insights into the company’s current “transformation” plans. Indeed, that is where our discussion began, with David Anckaert explaining what is meant by transformation in EMEA.

14th November 2023/by Chris

Goodyear reports $208 million overall net loss in Q2 2023

Company News, International News

The Goodyear Tire & Rubber Company has reported a second quarter 2023 net loss of $208 million compared to net income of $166 million a year ago. According to executives, the sharp drop was primarily due to lower sales volume and higher “other expense”, driven by lower net gains on asset sales and higher pension costs.

3rd August 2023/by Chris

Goodyear reports $101 million net loss in Q1 2023, EMEA cost cutting accelerated despite breakeven

Company News, International News

Despite a first-quarter 2023 net loss of $101 million, down $197 million compared with $96 million of positive income 12 months ago, Goodyear executives tried to shine a positive light on the US-based tyremaker’s latest financial results. Volumes may have been 3.2 million units lower than the same period last year at 41.8 million units, but net sales grew 1 per cent compared with the first quarter of 2022 and 4 per cent excluding foreign currency effects. And Goodyear EMEA is back to breakeven, but that wasn’t enough to avoid talk of accelerated cost-cutting measures.

5th May 2023/by Chris

Continental in talks to sell parts of its group

Company News, International News

NRZ, Arno Borchers

The recent news that Continental AG will close its Aachen, Germany tyre factory underlines the fact that it is aiming to cut 13,000 of 59,000 jobs in Germany as part of a major group-wide cost-cutting programme. Now, the German Manager Magazin is reporting that Continental is also considering the sale of parts of the wider group. Indeed, Continental is said to be in talks “already with prospective customers”. The Rubber Technologies business sector, which includes Continentals Tire and ContiTech division is also said to be affected.

13th October 2020/by Chris

More online services, fewer employees – DVLA to cut expenditure 30% by 2016/17

The direction the Driver & Vehicle Licensing Agency will take over the next three years has been set out in its new strategic plan, which was released yesterday. Amongst the highlights of The Strategic Plan for 2014/15 – 2016/17 are total efficiency savings of approximately 30 per cent (compared with 2013/14 levels) by 2016/17, and an expansion and acceleration of DVLA online services.

4th April 2014/by Tyrepress Editors

Bridgestone Q2 profit reaches 73.9b yen

Bridgestone Corporation’s consolidated financial statements for the second quarter and first half of 2013 show a considerable increase in net sales, operating and net income during the period. Net sales amounted to 1,705 billion yen (£11.4 billion) between 1 January and 30 June 2013, 14.4 per cent higher than in the same period of 2012. Operating income rose 42.3 per cent to 190.4 billion yen (£1.3 billion) and net income was up 55.5 per cent to 117.0 billion yen (£784.3 million). Net income per share increased from 96.17 yen to 149.52 yen (£1.00).

12th August 2013/12,345 Comments/by Tyrepress Editors

Yokohama’s bottom line hit in H1 2011

Although enjoying an 8.4 per cent increase in sales to 258.2 billion yen (£2.1 billion) in the six months to September 30, 2011, Yokohama Rubber experienced a decline in both operating and net income during this period. The company says rising raw material costs, an appreciating yen and an increase in selling, general and administrative expenses were chiefly responsible for the decline in operating income, which fell 8.3 per cent to 7.6 billion yen (£61.2 million) year-on-year between April 1 and September 30. These factors in turn led to net income falling 75.8 per cent to 294 million yen (£2.4 million). Yokohama notes however, that its actual operating income figure was 26.7 per cent higher than its earlier projection of 6.0 billion yen, the better result being achieved thanks to increased product selling prices and cost cutting measures.Net sales during the second quarter of the current financial year, between July 1 and September 30, 2011, increased 6.6 per cent to 128.8 billion yen (£1.0 billion). In this three month period operating income actually increased by 45.7 per cent, to 3.4 billion yen (£27.8 million), however second quarter net loss grew substantially year-on-year, from 222 million yen to 2.5 billion yen (£20.4 million).

14th November 2011/by Tyrepress Editors

Guides costing Michelin 15 million euros a year

Michelin’s tyre business is experiencing strong growth, yet an article published by the Financial Times indicates that the French company’s guide business – which accounts for less than one per cent of Michelin’s total annual sales – is losing more than 15 million euros a year. Cost cutting measures have already been taken as a result of this, including the business unit’s relocation from Paris’ prestigious 7th arrondissement, a stone’s throw from the Hôtel des Invalides, to an address outside the city. Yet the company appears unsure how best to approach the 111-year old institution.

20th July 2011/by Tyrepress Editors

Kumho Asiana Fires Seven Execs

According to a statement released by Kumho Asiana, the group dismissed seven of its 18 CEO-level executives on January 12. The company had previously said it would cut the number of executives in its ranks by 20 per cent and raise more than Krw 1.3 trillion (£695 million) through cost cutting measures and asset sales.

13th January 2010/by Tyrepress Editors

Amerityre Faces NASDAQ Delisting

(Tire Review) Amerityre Corp. has been notified by NASDAQ that its current financial status “was out of compliance” and that its stock may get delisted. NASDAQ claims Amerityre is not meeting the exchange’s Equity Standard Listing Rules, because it does not have a minimum of $2.5 million in shareholder equity, $35 million in market value of listed securities or $500,000 in net income from continuing operations for the most recent fiscal year. To remain listed, Amerityre must deliver by 20 October a “specific plan” on how it will meet and sustain those requirements, NASDAQ said. For its part, Amerityre said it “anticipates that its implementation of cost cutting measures combined with anticipated increases in revenues and successful fundraising efforts will be sufficient to bring it back into compliance with the minimum stockholders' equity requirements”.

13th October 2009/by Tyrepress Editors

Yokohama Rubber Revises Projected Loss

On September 25 Yokohama Rubber let it be known that its projected consolidated net loss for the first half of the current fiscal year is now smaller than previously anticipated. Projections for the six months from April 1 to September 30, 2009 have been whittled down from the 8.0 billion yen announced on May 12 to 5.0 billion (£33.9 million).

25th September 2009/by Tyrepress Editors

Schaeffler, Employees Reach Agreement on Cost Cutting Measures

Company management and employee representatives at Schaeffler KG’s facility in Schweinfurt, Germany have reached an understanding on a package of staff cost cutting measures. According to Schaeffler, this
measure has been taken due to weaker demand creating the necessity to make adjustments amounting to a total of 50 million euros. The savings will be generated through naturally occuring labour turnover, voluntary redundancy and part time work for older employees, plus a shortening of working hours and an extension of government subsidised short-time work. Apprentices at the site will be retained.

28th July 2009/by Tyrepress Editors

Former Kwik-Fit Boss is New Deputy Mayor of London

Tim Parker, the former Kwik-Fit and AA boss has been as a deputy mayor of London. His track record led to the trade unions dubbing him “the Prince of Darkness” after he departed from Kwik-Fit £25 million richer and the AA over £40 million better despite thousands of job cuts. Tim Parker’s deputy mayor role will see him become chief executive of the GLA Group, which comprises the authority itself, the London Development Agency and Transport for London, which he will chair.

It is widely reported that Parker became a multimillionaire after implementing often painful cost cutting programmes such as at the AA where he cut 3,500 jobs in the first 100 days following its take over by CVC Capital. However, on this occasion the Porsche driving multimillionaire has agreed to work for Boris Johnson for just £1.

29th May 2008/by Tyrepress Editors

JK Industries Back in the Black

JK Industries Ltd, the manufacturer behind the JK Tyre and Vikrant brands, recorded a turnover of 6.52 billion rupees (£83 million) between October and December 2005, a 30 per cent increase over the corresponding quarter of the previous year.

The quarter-end results also showed that the company’s Operating Profit (EBIDTA) has increased 100 per cent to 380 million rupees and the Profit Before Tax also registered an increase at 48.2 million rupees against a loss of 49.3 million rupees in the corresponding quarter of the previous year. Net profit was up at 24.7 million rupees against loss of 92 million rupees during the same period year ago.

23rd January 2006/by Tyrepress Editors

Goodyear Results Contain ‘Surprises’

Although Goodyear’s earnings were roughly as expected Goodyear’s recent positive results contained some surprises, Deutsche Bank analysts have reported. Despite 4 per cent growth in unit sales and an 8 per cent increase in average transaction prices, Goodyear was only marginally profitable in its North American tyre division in the fourth quarter, say the analysts. “We have doubts about Goodyear Tires’ ability to cut costs, increase volume, or improve variable margins in this region. In fact, there was evidence that cost cutting is losing steam,” they said adding: “Our model suggests that first half EPS will be close to breakeven. Improvement in the second half requires significant ramp up of cost savings.”

21st March 2005/by Tyrepress Editors