Deutsche Bank Archives - Page 6 of 16 - Tyrepress

Posts

US Government Likely to Support Automaker Rescue

Outgoing president George Bush’s administration has reportedly reached a tentative agreement with democratic leaders to help carmakers GM and Chrysler stay afloat. The announcement follows the news that 533,000 jobs were lost in November and president-elect Obama’s announcement of the US’s biggest infrastructure investment since the US highway system in the 1950s. Obama has not to put a full cost on his plan advisers estimate it will be over $700 billion (£477 billion) and could even top to $1 trillion.

Deutsche Bank analysts suggested the LTFVUSA Act (Long term Financial Viability of US Automakers) would be comprised of two rounds of financing: “Short term bridge financing that would carry the automakers through 31 March and longer term funding that would be predicated on the plans for long term viability, which will be assessed by an auto industry financial viability advisor.” The effect the latest plans will have on declining OE tyre orders is far from clear.

8th December 2008/by Tyrepress Editors

Analysts: Natural Rubber Price Dropping

Natural rubber prices have dropped 20 per cent to US$ 2.30/kg (RSS3 grade) during the last 10 days. According to Deutsche Bank analysts this brings the market back to the average price of 2007 and 18 per cent below the average price of 2008 (US$ 2.8/kg). For large scale companies like Michelin, the price cut is expected to filter through to profits and loss reports in the second quarter of 2009. According to the analysts, every $0.01 change in natural rubber prices makes a $9 million impact.

7th October 2008/by Tyrepress Editors

Goodyear Retail Closures Viewed Positively, Comment DB Analysts

A Deutsche Bank analyst report indicates that Goodyear’s decision to close 92 “underperforming” retail locations in the US is a good thing. “Overall, we view this announcement positively,” says the report, “as it demonstrates additional cost savings as GT (Goodyear).” The closure of the retail stores is expected to result in after-tax charges of US$40 million and generate savings of $9 million per annum. This level of savings, says Deutsche Bank, could potentially add $0.03 to $0.04 to its earning estimate.

2nd September 2008/by Tyrepress Editors

Natural Rubber Price Levels Off

The price of natural rubber is finally starting to level off, after increasing 40 per cent in the last year. According to Deutsche Bank analysts, the price is now likely to level off at around US$2.8/kg, having risen to US$3.3/kg (RSS3 grade) by June 2008. “If natural rubber price follows recent drop of oil price, it could drop to US$2.6/kg (the average of the last 18
months),” the analysts observed. The news is likely to be greeted by a sigh of relief by tyre manufacturers who had been witnessing erosion in their operating profits due to increased raw material prices.

19th August 2008/by Tyrepress Editors

Conti’s Supervisory Board “Open to Talks With Schaeffler”

Continental AG’s management is struggling to find a majority willing to back its anti-takeover strategy on the group’s supervisory board. Frankfurter Allgemeine Zeitung confirmed earlier reports that supervisory board head Hubertus von Gruenberg sees a merger with Schaeffler as beneficial and therefore is skeptical about getting involved in a drawn out battle with the takeover aggressor. Hans-Olaf Henkel and Michael Frenzel, CEO of TUI AG. are also believed to back negotiations with Schaeffler, the paper added. However, supervisory board members Diethard Breipohl and Fred Steingraber are said to be sticking to their guns with a view to eventually forcing Schaeffler to increase its bid, Frankfurter Allgemeine Zeitung reported.

12th August 2008/by Tyrepress Editors

Analysts “Still Cautious” on Cooper Shares

A financial analyst report on the fortunes of Cooper Tire suggests that investors will continue to be cautious with the American tyre manufacturer despite some positive signs.

The Deutsche Bank study states that Cooper’s “‘clean’ EPS loss, adjusted for a ‘normal’ 30 per cent tax rate, would have been ($0.26), compared with our ($0.23) estimate.” This figure is one that the Bank believes will deter investors for the time being, alongside “continued market share declines, high cash burn, lack of identifiable cost reductions, and warnings of further raw material increases.” On the other hand, the analysis states that the company’s plan “to raise prices by ‘up to 10 per cent’ in October” will mean that the share price will retain its strength.

6th August 2008/by Tyrepress Editors

Deutsche Bank Walks Away from Schaeffler

Deutsche Bank has severed ties with the Schaeffler Group following the company’s controversial takeover bid for Continental. The bank will provide financial consultation to the German tyre manufacturer, with the vacant position at Schaeffler filled by the Royal Bank of Scotland.

28th July 2008/by Tyrepress Editors

US Replacement Tyre Market Slump Continuing

Preliminary data collated by Deutsche Bank indicates that in May shipments of replacement tyres in the US were down 9.2 per cent year on year (-5.0% adjusted for one less shipping day). This decline follows a 3.5 per cent fall in April and 5.0 per cent drop in March. Based on such information, the bank estimates that US industry replacement shipments are down 5.2 per cent year to date, with weakness particularly acute in the “broad-line” and private label end of the market.

10th June 2008/by Tyrepress Editors

Analysts: ‘Massive’ Price Increases Needed to Offset NR Costs

Analysts have warned that tyre manufacturers will have to introduce “massive” price increases to offset the surging natural rubber cost. On 26 May the natural rubber price reached US$3.25/kg, 12 per cent above the level reached last month (US$2.90/kg); and 40 per cent above last year’s average price (US$2.30/kg). According to one Deutsche Bank analyst’s research note the price surge is surprising because natural rubber supply (9.9 million tons in 2007) still exceeds demand (9.7 million tons in 2007); and world inventories represent 23 per cent of annual demand.

27th May 2008/by Tyrepress Editors

Martin Krämer New Lanxess CFO for China and Hong Kong

Martin Krämer, currently head of the Lanxess Group Function Treasury, is to be the specialty chemicals group’s new CFO for Greater China. Krämer, aged 41, will begin the Shanghai based position on April 1, 2008. In this function, which in future will also include responsibility for Hong Kong, Krämer will continue to report to Lanxess CFO Matthias Zachert. The successor to Krämer as head of the Group Function Treasury, effective March 1, 2008 is Christoph Koch, currently head of the Corporate Finance department within this Group Function. The present CFO in China, Marc Horn, is returning to Group headquarters in Leverkusen to take up new duties.

27th February 2008/by Tyrepress Editors

Analysts: 2008 Will Be ‘Another year of Progress for Michelin’

Michelin’s full year 2007 results were “good,” according to a Deutsch Bank analyst note. Volume growth (up 3.2%) is said to be “back to trend,” with the analysts noting that the company’s true operating margin actually 40 basis points higher than the 9.8 per cent stated. This itself is a 23 per cent increase over the company’s 2006 figure. Looking forward, the Deutsche Bank report said 2008 should be “another year of progress due to: 2 per cent volume growth and raw material price increase being more than offset by increased selling prices.

21st February 2008/by Tyrepress Editors

Solutia Files Suit Against 3 Banks

On Feburary 6 Solutia Inc. filed a complaint in the US Bankruptcy Court for the Southern District of New York against the three banks that had executed a firm commitment to fund a US$2 billion exit financing package for Solutia, but to date have refused to meet this commitment. These banks are Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc.

The supplier of chemicals to the rubber industry is seeking a court order requiring the banks to meet their commitment and fund its exit from bankruptcy. The complaint also asserts that the banks should be stopped from invoking the clause they claim relieves them of their obligation due to their improper conduct and misrepresentations to the company, and further claims that the banks fraudulently induced Solutia to enter into the initial engagement by promising that the financing was firmly committed. Solutia and the banks have agreed that Solutia’s claim to require immediate funding of the $2 billion package should be heard by the Court on an expedited basis, with the trial to conclude by the end of February – prior to the expiration of the banks’ commitment.

8th February 2008/by Tyrepress Editors

Analysts: High Raw Material Prices Protect Tyre Manufacturer Margins

Following Bridgestone’s recent decision to increase prices in North America, Deutsche Bank analysts have observed that high raw material prices are allowing the leading players to indirectly influence market prices. In their words, Bridgestone’s recent 8 per cent price hike is a “good indication that the oligopoly is working.” The market watchers continued: “Prices are, paradoxically, a good protection on margins.” Assuming that only 50 per cent of these price increases are being sustained within the market, this would allow the manufacturers to offset a 12 per cent synthetic rubber or natural rubber price increase, according to Deutsche Bank.

29th January 2008/by Tyrepress Editors

Michelin to Raise Truck & Agri Tyre Prices in US

Michelin North America has announced price increases for some of its tyre product lines. Commercial truck tyre prices will increase by up to six per cent on Michelin and BFGoodrich brand replacement tyres and up to four per cent on MRT retreads sold in the United States, effective January 1, 2008. Agricultural and Compact Line tyre prices will be raised by up to seven per cent on products sold in the United States, also effective as of January 1, 2008.

21st November 2007/by Tyrepress Editors

Analysts Question Cooper’s Underlying Performance

In an analytical note entitled “When Will Nonrecurring Items Not Recur?” Deutsche Bank market watcher Rod Lache remarked he was disappointed with Cooper’s “underlying performance.” The manufacuturer’s recently published third quarter earnings per share results were, however, in line with estimations.

North American earnings improved $28 million year-on-year. But the analysts suggested that there are still problems with the company’s cost structure. The note stated: “While we believe that the inefficiencies being experienced by Cooper Tire may in fact be temporary, CTB must execute cost reductions, and management needs to specifically identify those improvements, before the market begins to buy into the sustainability of the company’s turnaround plan.”

8th November 2007/by Tyrepress Editors