The Unipart Group of Companies, one of Europe’s leading privately–owned distribution and logistics businesses, has reported sales for 2004 of £1.064bn (2003: £525.8m) and a net operating profit of £25.4m (- £1.3m). After tax, interest and other charges, the Group reported a profit of £26.3m (£0.9m).
Following its acquisition by British private equity firm, CVC Capital Partners, Kwik-Fit has put itself up for sale in a move that could raise as much as £800 million. CVC is reported to have sent information on the company to “a string of prospective buyers.” Although the names of the these companies have not been officially released, Reuters speculated that the list would include all the leading buyout firms including Cinven, Kohlberg Kravis Roberts, BC Partners, Permira and J P Morgan Partners. The sale is expected to be completed by the end of the summer.
Following the San Marino Grand Prix last weeked, Bridgestone has announced thenames of the seven finalists of its e-reporter competition. The pan-European contest for aspiring young journalists has received an “overwhelming” response from students across Europe, according to Bridgestone.
Michelin has released fist quarter results that show the company’s net sales have “stabilised” in value terms. The weakening dollar is said to have contributed to the 0.2 per cent drop in sales to 3.61 billion euros against the same period last year.
The growth of high performance tyres in the UK is outpacing the rest of Europe. V-Z rated tyres have grown 15-20 per cent in the last year. However the sector has, in the past, been largely led by OE fitment and reserved for the main players. How well are second line and budget brands competing in the aftermarket? Tyres & Accessories looks at how tyre manufacturers are extending the boundaries and what exactly is possible when it comes to upgrading tyres.
Pirelli is to build a new tyre plant in Romania, The Cumberland News has reported. The new Romanian tyre plant will reportedly be of a comparable size to the Pirelli factory at Cummersdale near Carlisle and will initially produce 4.5 million tyres a year. However, unlike the Carlisle plant, which specialises in 4×4 tyres, the Romanian plant will produce the full range of Pirelli products, the newspaper reported.
Stapletons Tyre Services has appointed Taro Ikeba to the position of chief financial officer to join its expanding operation. Mr Ikeba joined Stapletons recently from his previous position at Itochu Finance Europe plc in London, where he was head of corporate finance. He will report to Stapletons’ chief operations officer Alan Denton, and his core responsibilities will include managing the company’s overall financial strategy.
Michelin is likely to embark on a major restructuring programme in the coming years. The news follows a meeting between Deutsche Bank analysts and Michelin. The fact that 24,000 people will be retired in the next five years (17,000 in Western Europe or 31 per cent of the workforce and 7,000 in North America or 33 per cent of the workforce) is said to allow for higher productivity gains and transfer of production to low cost countries.
Goodyear is “more or less on track…to come in around breakeven” during the first quarter of 2005, Deutsche Bank analysts have reported. The analysts went on to say that they foresee a modest profit ($0.05 per share) in the second quarter, while maintaining their $10 target sell rating. The market watchers suggest that Goodyear’s new $3.2 billion credit facility ($2 billion of which has already been used) has “bought the company enough time to turn its tyre business around. However, there was caution. The analysts warned that competition from America and Eastern Europe present challenges for the company, as do declining military revenues and lower auto production levels. In addition, competitors appear to be outpacing Goodyear’s efforts to shift to low cost markets, they concluded.
The SMMT have described this years Commercial Vehicle Show and Automotive Trade Show as “an outstanding success.” Provisional figures show that almost 27,000 visitors attended the three-day event at the NEC last week.
“The CV Show and ATS is the most successful show of its type in Europe,” said SMMT chief executive Christopher Macgowan. “Last week’s excellent event reinforced that market-leading position, delivering multi-million pound business opportunities to 632 exhibitors and thousands of trade visitors. We know that many exhibitors made good use of the opportunities we delivered and collectively announced billions of pounds worth of new business.”
(Akron/Tire Review) The Goodyear Tire & Rubber Co announced that it has closed $3.65 billion in new credit facilities, including a $1.5 billion asset-based revolving credit facility due in 2010.
Other credit facilities include a $1.2 billion second-lien term loan due in 2010 and a $300 million third-lien secured term loan facility due in 2011.
Goodyear Dunlop has appointed Dominque Golsong as its European legal chief, reports Lawyer News.
Mr Golsong, the former associate general counsel of Dow Corning Corporation, the silicones and silicones-based products, technologies and services company, joined the manufacturer last month in his new position.
Replacing Philip Regnault, who retired after three years with Goodyear Dunlop he will be responsible for the company’s EU strategic business unit as well as the Eastern Europe, Middle East and Africa strategic business unit.
Prior to Dow Corning, Mr Golsong was a corporate lawyer in Linklaters’ Brussels office, after which he joined New York-based firm Sullivan & Cromwell.
Michelin will supply the tyres for the eight Renault Trucks vehicles taking part in the Silk Road 2005 expedition between 2nd April and 9th June. The teams will travel 20 000 km across Europe, Turkey, Iran, Turkmenistan, Uzbekistan, Kazakhstan, Kyrghyztan and the Inner Mongolian region of China, following the path of the legendary Silk Road. Michelin will fit the trucks with specially designed all-terrain tyres, sized 395/85 R20 XZL.
Interstate Europe BV, has appointed Ovethi A/S as the distributor for Sonar tyres in Denmark. Interstate’s Commercial Director, Mr. Theo de Vries, said he was “very satisfied to have an experienced and professional company such as Ovethi as the distributor in Denmark.” Ovethi A/S has been working for a number of years in the Danish tyre market and has its own retail chain throughout Denmark. The Sonar range includes tyres from 13 inch to 20 inch, plus commercial and 4×4 tyres.
Delphi has announced details of its latest friction catalogue. The 2005/6 guide was designed in conjunction with customers and features am improved new-to-range section and buyers guide, better application detail, more European languages and, for the first time, the use of product symbols.
“We’re always seeking constructive feedback from our customers and using this to fine tune our service offering,” said Lesley Culpan, European marketing manager – braking. “As a direct result of this approach, this latest catalogue is smaller but still contains plenty of handy diagrams to ensure our customers spend less time looking for the right parts and more time serving their customers.”
Other significant improvements include the use of OE numbers and thumbnail drawings in the new-to-range section, together with an improved buyers guide. “Because this catalogue is used across Europe we’re really conscious of the potential language barriers that can arise,” continued Mr Culpan. “The use of symbols against products is a first for us but specifically designed to save time when identifying parts, whatever the language.”
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