Nokian Tyres reports that its net sales increased 22.6 per cent during 2007 to 1.025 billion euros. During this period the company recorded an operating profit of 234 million euros, a 52.8 per cent rise on that of the previous year. During the year earnings per share also increased 55.7 per cent from 0.88 euros to 1.37 euros, and profit for the period was 168.9 million euros, up 57.4 per cent from 107.3 million euros a year earlier.
Shareholders in JK Tyre & Industries look assured of a healthy return on their investment after the company’s board of directors recommended a dividend of 27 per cent on equity shares for the year 2006-07. Company net profits for the quarter ending December 31, 2007 were Rs 217.4 million (£2.8 million), an impressive increase of 166 per cent on results for the same quarter a year earlier. Net sales were Rs 7,228.8 million (£92.4 million, an increase of 9.9 per cent.
The Board of Directors of Titan International has approved a quarterly cash dividend of US$.005 per common share for the fourth quarter of 2007. The cash dividend is payable January 15, 2008, to stockholders of record on December 31, 2007.
On November 15 Cooper Tire & Rubber announced a quarterly dividend of 10.5 cents per share on its common stock, payable December 28, 2007, to stockholders of record at the close of business on December 3, 2007. This latest payment will mark the 143rd consecutive quarterly dividend paid by the Cooper Tire & Rubber Company. The company, which went public in 1960, has increased the dividend it has paid annually since 1980.
Pirelli & C SpA chairman Marco Tronchetti Provera is planning to pay of the company’s debt and invest in its tyre unit with cash from the planned sale of its Olimpia unit. According to the AFX news agency, the board “has not taken any decision on any extraordinary dividend or share buy-backs.” Pirelli is expected to receive 3.3 billion euros of cash when its sell Olimpia, which owns an 18 per cent share of Telecom Italia SpA. In the meantime the company is waiting Brazilian regulatory clearance to sell Olimpia.
The Board of Directors of Titan International, Inc. has approved a quarterly cash dividend of $.005 (one half cent) per common share for the third quarter of 2007. The cash dividend is payable October 15, 2007, to stockholders of record on September 28, 2007. Titan International, Inc., a holding company, owns subsidiaries that supply wheels, tyres and assemblies for off-highway equipment used in agricultural, earthmoving/construction and consumer (including all terrain vehicles) applications.
Cooper Tire & Rubber announced on August 3 that its Board of Directors has named Robert D. Welding as a director of the company, effective immediately. Welding, 58, is president and chief executive officer of Federal Signal Corporation and a member of Federal Signal’s board of directors.
Prior to joining Federal Signal in 2003, Welding was group president of the BorgWarner Driveline Group, a $1.2 billion global business, and executive vice president of BorgWarner Inc. Previously, he served as president and general manager of BorgWarner Transmission Systems, a unit of the Driveline Group. In his 20 years with BorgWarner, Welding held a variety of positions of increasing responsibility in operations and product engineering management. Prior to that, he served in various management and product engineering capacities for General Motors and Volkswagen of America. Welding began his career as a product development engineer in 1970.
Sameer Africa recorded a 54 per cent increase in pre-tax profit to Sh113.8 million (£836,000) during the first six months of 2006. These results are very good news for the Kenyan tyremaker, who in March reported losses amounting to £164,000 as a result of low price imported tyres.
Sameer’s sales rose 14 per cent from Sh1.6 billion (£11.8 million) in June 2006 to Sh1.7 billion (£12.5 million) in June 2007. The company reported in a statement that this growth came via a 6 per cent boost in the sales of Yana brand tyres. However, despite the positive results the company’s board has not recommended payment of an interim dividend.
Indonesia’s PT Gajah Tunggal Tbk intends to pay cash dividends for the 2006 fiscal year on August 8, 2007, with a value of IDR5 (£0.00027) per share. According to a report Gajah Tunggal management submitted to Indonesia’s Central Securities Depository, the cash dividends will be paid out to shareholders who register by the recording date of July 25, 2007.
Gajah Tunggal and its subsidiaries recorded a net profit of IDR11.401 billion (£6.5 million) in 2006, a significant drop from the previous year’s IDR346.835 billion (£19.1 million). Company management claimed that net profit fell sharply because of a 10.72 per cent increase in operating expenses.
India’s Falcon Tyres has signed a technical assistance agreement with Japanese giant Sumitomo Rubber Industries. Chairman of Falcon’s parent Ruia group, P.K. Ruia, has stated that Sumitomo will provide know-how for the production of tyres for two-wheeled vehicles.
According to Mr. Ruia, the agreement will provide assistance for everything from improving production processes through to the introduction of tubleless and other technically advanced tyres. He said although the brand had to date focused upon the OEM segment, the current sluggish growth in OEM demand might force the company to increasingly look at the replacement market.
Falcon Tyres finalised its 2006-07 results at its board meeting on June 28, and have reported an increase in dividend from 25 to 30 per cent for the year. This follows an increase in turnover from £312.9 million £393.9 million. The company’s net profit improved from £4.4 million to £4.8 million.
According to newly released non-consolidated financial projections for the 2007 fiscal year January 1 to December 31), Bridgestone’s management expects net sales and operating income to increase over the projections the company announced on February 20, 2007 due in part to the weaker-than-expected Japanese yen against the US dollar and the euro. Net sales have been revised to 1,020,000 million yen (£4.138 billion), up 5.2 per cent on the previously anticipated 970,000 million yen figure.
Bridgestone management also expects an increase in ordinary income and net income over the projections announced on February 20, again due in part to exchange rates, combined with dividend revenue from subsidiary shares due to the reorganisation of some of the company’s domestic subsidiaries. The latest projections for ordinary income put it at 105,000 million yen (£426 million) for the 2007 year, 19.3 per cent higher than expected in February. Net income is anticipated to be 73,000 million yen (£296 million), 25.9 per cent higher than the previous estimate and 18.7 per cent above the 2006 year result of 61,552 million yen (£249.7 million).
Michelin’s annual shareholders’ meeting was held in Clermont-Ferrand on May 11, and managing partner Michel Rollier submitted to the shareholders a number of proposed changes in the area of Michelin Group corporate governance. Of particular significance was the proposal that “the [Group’s] management be enlarged to non-general managing partners in order to guarantee the sustainability as well as collegial nature of its management”.
The resolutions submitted for shareholder vote – 18 in total – were approved by a sizable majority, and the company’s bylaws were amended accordingly. Mr. Didier Miraton, Head of Research and Industrial Performance and Mr. Jean-Dominique Senard, Chief Financial Officer, were appointed Non-General Managing Partners. Commenting on the changes, Mr. Rollier stated he was convinced that he and the two new managing partners, would form “the close and efficient team Michelin needs to rise to the challenges confronting it”.
India’s Bharat Earth Movers Ltd (BEML) has announced its intention to diversify into the manufacture of OE and replacement market OTR tyres for mining applications. Along with its major customer, Coal India, BEML will work on this venture jointly with Apollo Tyres and JK Tyres. The OTR section is seen as a highly attractive market segment in India due to the larger profit margins offered compared with passenger car and truck tyres. Furthermore, at present 80 per cent of the OTR tyres sold in India are imported.
Shares in Goodyear India jumped almost 10 per cent from Rs 159.30 (£1.87) to Rs 175.20 (£2.06) on March 26. More than 40,000 shares were traded over the counter, treble the two-week average volume for Goodyear shares. This increase followed the announcement that the company would pay a dividend of Rs 5 (£0.06) a share for the year ended December 31, 2006.
As reported yesterday, Goodyear India has stated that a meeting of the company’s board of directors will be held on March 25 to review the annual financial results for the year ended December. 31, 2006, and to recommend the payment of dividend, if any.
As of March 21 Goodyear India shares were trading on the Bombay Stock Exchange at Rs 143.65 (£1.68), down Rs 0.55 or 0.38 per cent.
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