TIA Help Hurricane Recovery
The Tire Industry Association (TIA) has announced that it will offer resource assistance to its members in Florida, South Carolina and Georgia who were affected by Hurricanes Charley and Frances.
Posts
Analysts Applaud Michelin Deal
Product NewsThe recent cost cutting agreement signed by Michelin and USWA is a “significant achievement,” according to Deutsche Bank analysts.
Bridgestone Forecasts ‘Overly Pessimistic’
Product NewsAccording to Deutsche Bank, Bridgetone’s second half forecasts are overly pessimistic. The company’s projections are also said to assume low production volume and reflect an overly negative “cost-push scenario.” Instead Bridgestone’s strong first half results, which include an increase in turnover of 4 per cent and 29 per cent improvement in the companies operating income, have led analysts to project a more positive outlook and to affirm their advice to buy these shares.
Goodyear Results ‘Deflate’ Analysts
Product NewsGoodyear may have been in profit for the second quarter and may have posted record sales but not everyone is impressed. Deutsche Bank analysts have pointed out a number of flaws in the company’s optimism.
Sumitimo Rubber Industries: Buy
Product NewsThe Japanese tyre manufacturer has reported good 1st quarter figures. Demand was better than expected, exports are booming and price increases seem to have stuck. All reasons for Deutsche Bank to recommend the shares as a “buy”.
Deutsche Bank regards Goodyear shares overrated
Product NewsWhile the Goodyear shares jumped around 5 per cent to 8.56 US-Dollars on the stock exchange, finance experts have reacted more cautiously. Rod Lache, DB-analyst in New York, doubts whether the contract with the unions or the closing of a factory in the USA last year is sufficient to have a positive effect on the high fixed costs. He expressed surprise that Goodyear’s volumes slipped by 1.7 per cent while the industry gained 3.7 per cent. The value of Goodyear shares is in the region of 6 US-Dollars, according to Deutsche Bank.
Goodyear’s Pension Funded Status worrying
Product NewsWhile the US- Automobile Industry and most of the suppliers could improve their pension fund positions, Goodyear is, according to analysts, an exception. Compared with liabilities of 2.2 billion US-Dollars at the year end 2002; those could now have risen to 3 billion US-Dollars. Analysts from Deutsche Bank do not see potential for Goodyear shares and recommend a
cautious stance. They still have doubts that Goodyear can manage the long awaited turnaround in North America this year despite the fact that the
markets as well as the tyre replacement market have shown strong improvements.
Currency Advantage For Western European Tyre Makers
Product NewsIt is better to be a tyre manufacturer in Western Europe rather than the USA, say analysts from the Deutsche Bank. The main reason is that raw material prices, billed in US$, have risen 20 per cent in Dollar terms, but only 3 or 4 per cent in Euro terms. Another advantage is in the performance of the respective tyre markets, with the European replacement truck tyre market in the first four months up 5 per cent (US market up 2 per cent) and the car tyre market in Europe rising 8 per cent, against a 5 per cent decline in the USA.
Deutsche Bank Leaves Continental
Product NewsDeutsche Bank has sold its involvement in Continental AG of which it held 7.5 per cent share valued at 142.3 million dollars to investment groups in Germany, Great Britain, Suisse and USA. The bank also reduced its DaimlerChrysler shares from 12.85 percent (31.12.01) to 11.80 (05.11.02).
Goodyear: Hold
Product NewsMcDonald Invest has reclassified Goodyear shares from Buy to Hold. The Deutsche Bank in New York is afraid that Goodyear will show a loss for the year or, at best, break even. The analysts from Deutsche Bank believe that Goodyear has its own particular problems compared with other tyre manufacturers.
Continental: Problems With Nafta
Product NewsAnalysts at Deutsche Bank believe that this year Continental could achieve an EBITA of 600 million Euros. The management had forecast 530 million Euro. Although Temic was acquired, indebtedness has been reduced by 300 million Euros. Business in the USA is still bad, with losses of 100 million Euros (and more) expected. The objective of the chairman of Continental USA, Dr. Ulrich Wellen – to break even – seems not likely to be realised, at least in the near future.
Goodyear Employees Hold 22 Per Cent Of Stock
Product NewsIn conversation with analysts, Goodyear disclosed that it holds 35 million Goodyear shares in its 401 K Savings Plan, 20 million from salaried employees and 15 million from blue collar workers. This means that Goodyear employees hold 22 per cent of outstanding Goodyear stock. Some analysts, including those from Deutsche Bank, are sticking to their “buy” recommendation.
Interim Managing Director For Kwik-Fit
Product NewsIn light of questions from bidders about the influence of Sir Tom Farmer on the bidding for Kwik-Fit, Sir Tom and two other directors of the business are taking leave of absence during the expected sale of the fast fit chain. Sir Tom has been named as a possible buyer and is rumoured to be backed by HBOS and the Royal Bank of Scotland. One of the potential bidders for the business which employs 11,500 people at 2,400 outlets, is Deutsche Bank’s venture capital division. The interim managing director will be Dominic DiMarco, Ford’s executive director of diversified consumer services.
Divestment For Pacific Dunlop
Product NewsPacific Dunlop has announced it is to withdraw proposals to split its business into two independent publicly listed companies. The company told the Australian Stock Exchange it has decided to explore options to divest elements of the business and has appointed Deutsche Bank AG to assist. A profit warning for the second half to June 2001 was released, expecting profit to be up to 30 per cent lower than first half results.
Bank Analysts View C3M Factory Tyre Production
Product NewsAt its so-called annual strategy day, Michelin had only partly good news to tell. Following the disastrous Firestone tyre recall, the price increases in the US-replacement market appear to have stuck. However, recent price increases in the US truck tyre replacement market have not held and this is squeezing the EBIT margins. For the first time ever, analysts were allowed to see a tyre made by the C3M process. Michelin is convinced that it can increase market share significantly in the UHP market with the help of C3M, while analysts from Deutsche Bank see C3M as a key driver to achieve an EBIT margin of 10 per cent in 2005, compared to 7.6 per cent in 2000.
