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Bridgestone H1 Results Highlight Across the Board Growth

On August 9 Bridgestone released its consolidated business and financial results for the January 1 – June 30 period. Net sales during this half year, at 1615.6 billion yen (£6.69 billion), were up 13 per cent on last year, an increase partially brought about through an exchange gain on the weaker Japanese yen. Operating income increased 21 per cent from 84.1 billion yen (£348 million) to 102 billion yen (£422.16 million) and ordinary income increased 29 per cent to 91.3 billion (£377.88). Net income, at 52.9 billion yen, was 61 per cent higher than a year earlier.

Operating income from the sale of tyres increased 30 per cent to 70 billion yen (£290 million) on a 15 per cent increase in sales, to 1304.7 billion yen (£5.4 billion). Bridgestone states that it sought to maximise tyre sales momentum through the ongoing introduction of new products worldwide, while at the same time expanding strategic production sites in support of products that have been identified as important to the company’s growth.

9th August 2007/by Tyrepress Editors

Goodyear Names Mark Schmitz Executive Vice President and CFO

The Goodyear Tire & Rubber Company announced on August 7 that W. Mark Schmitz has been appointed executive vice president and CFO, effective immediately. Schmitz succeeds Richard J. Kramer, who in March was named to the additional post of president of Goodyear’s North American Tire (NAT) business unit. Prior to joining Goodyear, Schmitz, 56, was most recently vice president and CFO for Tyco International’s Fire and Security Segment, a position he had held since 2003. Schmitz, however, has spent the majority of his career with General Motors

“As we considered candidates, we sought an experienced CFO who could work with our leadership team to build on our recent successes and drive our business strategy going forward,” said Robert J. Keegan, Goodyear chairman and CEO. “In Mark, we found an individual with a successful track record, who is intimately familiar with the automotive industry and who has considerable international experience.”

8th August 2007/by Tyrepress Editors

Peter Harries to Head-Up Group Tyre

Peter Harries has been officially named as the new managing director of leading independent wholesale group, Group Tyre (UK) Ltd. Prior to joining Group Tyre, Harries spent six years as sales director of Cooper Tire & Rubber Europe. Before this he spent more than two decades in a range of positions with Avon Tyres and Cooper Tire. “I am very excited to be joining Group, a company which I have always admired,” Harries told Tyres & Accessories, adding that he has joined the company at a significant point. “There is a lot of change in tyre industry,” he commented.

Previously, group tyre had been run by its former chairman, John Church, until he stepped down on 1 April 2006 due to health reasons. In the interim Larry Cross (coordinating director), Karl Naylor, (director of commercial operations), Nick Manning (director of purchasing), and John Dunleavy (financial controller) took responsibility for maintain continuity.

7th August 2007/by Tyrepress Editors

Dunlop India Embroiled in Factory Land Dispute

Dunlop India’s fortunes continue to slide to a new low as the company, on top of the recent cessation of production at its Sahagunj plant, becomes entangled in a land dispute. The quarrel with real estate company VGN Enterprises surrounds a small portion of the 60.86 acre Chennai plant plot auctioned off by Dunlop India in 2004 in compliance with a Board of Industrial and Financial Reconstruction (BIFR) rehabilitation scheme.

The tyremaker claims the land in question could not be sold under the BIFR scheme, however the buyer, VGB Enterprises managing director V N Devadoss, is adamant that any right Dunlop India may have once had to the land has been relinquished. VGB Enterprises paid Rs 234.4 million (£2.96 million) for the parcel of land, and plans to develop the land into an integrated township. Mr. Devadoss has supported his ownership claim with the land’s title deed, court cases settled in his favour and an affidavit filed by Dunlop India in support of the sale of the land to him.

3rd August 2007/by Tyrepress Editors

US OTR Probe Ruffling Feathers in China

US Treasury secretary Hank Paulson’s two-day visit to China has conveyed his government’s desire for greater Chinese market access for overseas firms to officials in Beijing. Mr. Paulson met with China’s president Hin Jintao plus a number of finance and economic ministers, and used the opportunity to push for increased financial sector liberalisation, emphasising the benefits a loosening of regulations would bring.

“For the life of me, I cannot understand why China letting in strong foreign firms, which are regulated by the Chinese, would undermine stability. It would help stability,” he said. However this talk of increased China access comes at a time when tension between the two giant economies is growing. On July 31 the US Commerce Department agreed to investigate claims that Chinese OTR tyre producers were ‘dumping’ their products in the US market.

2nd August 2007/by Tyrepress Editors

Half-Year Results “Arm” Conti for Future

Following positive sales and EBIT during the first half of the year, Continental AG says its goals for 2007 are firmly in sight and feels “well-armed to tackle the tasks ahead.” The German tyremaker and automotive supplier achieved double-digit growth over the same period last year in these two key financial indicators, a result Conti is calling a “rock solid basis for yet another peak year.”

Consolidated sales for the first six months of 2007 rose by 10.8 per cent compared with the same period of 2006, to 8,013.9 million euros, and Continental report the Motorola automotive electronics business contributed 558.7 million euros to the company’s sales. Before changes in the scope of consolidation and exchange rate effects, consolidated sales were up 6.3 per cent.

Raw material prices, although still at a high level, remained stable during the first half of the year. EBIT rose by 26.2 per cent over the previous year’s 722 million euros to 911.5 million euros, and the return on sales to 11.4 per cent. The automotive electronics business acquired from Motorola contributed 7.4 million euros to EBIT. Before changes in the scope of consolidation and special effects, EBIT rose by 146.4 million euros – 19.2 per cent – to 909.8 million euros.

1st August 2007/by Tyrepress Editors

Pre-Tax Profit Skyrockets at JK Tyre

The un-audited financial results released by JK Tyre & Industries Ltd for the quarter ending June 30, 2007 – the third quarter of India’s financial year – reveal good news for shareholders and paint a picture of a company in a strong position.

Revenues of Rs 8,178 billion (£100 million) were recorded for the quarter and the company reported EBIDTA of Rs 725.3 million (£8.8 million), up from the Rs 444.9 million (£5.4 million) achieved last year. Pre-tax profit rose to Rs 312.3 million (£3.8 million), a huge jump from a year ago when profits before tax stood at Rs 56.1 million (£683,700). The earnings per share for the quarter stands at Rs 6.56 (£0.08).

31st July 2007/by Tyrepress Editors

Analysts: Michelin H1 Results “Good”

Despite reporting first half operating profits below analysts’ estimates, (860 million euros, up 34 per cent instead of 910 million euros, up 41 per cent), Deutsche Bank has described Michelin’s first half financials as “good.” They see the difference as mostly attributable to adverse raw material price fluctuations between semesters and as a result are predicting a better than expected second half. Therefore the bank has left its full-year operating profit projections for the company at 1.72 billion euros, up 30 per cent, which equates to a high 10 per cent of sales.

Looking further ahead, the analysts pointed to the 19 per cent margin achieved by Michelin’s specialty tyres division, which was loss making four years ago. According to the analysts, this is a “good indication of what truck tyres can achieve in the future.”

30th July 2007/by Tyrepress Editors

Pirelli Tyre Profits 6% Up in 1st Half Year

Pirelli & C. SpA disclosed on July 27 that operating profits from its core Pirelli Tyre operations rose six per cent in the first half of the current financial year to 206 million euros. This increase over the previous year’s first half of 195 million euros has been attributed to higher revenues and an improved product mix. Revenues for the division increased 6.6 per cent to 2.15 billion euros.

Operating profit figures for the entire Pirelli Group were also positive, increasing 10.2 per cent to 342 million euros. Revenue for the Group, at 2.68 billion euros, was 11.1 per cent higher.

These current figures for Pirelli Tyre and the Group are preliminary and the company will publish full results on September 11.

27th July 2007/by Tyrepress Editors

Large TiWheel Share Trade Under Scrutiny

South Africa’s JSE stock exchange confirmed on July 24 that it was looking into an unusually large trade of Tiger Wheel and Tyre stock in May, and would make a report on the matter to the nation’s Financial Services Board. While it is not yet clear to the JSE whether or not the trade should be considered suspicious, the trading of more than 7 million shares in a single transaction on May 11 – only two weeks before Tiger wheels issued a cautionary announcement – is an event that contrasts markedly with the preceding low trading activity in Tiger Wheels shares.

The cautionary, published on May 30, said the performance of its 74 per cent held global wheel manufacturing business, ATS GmbH, had failed to meet the expectations of the revised performance forecast made to its German financing syndicate in February. However, the JSE reportedly had no knowledge of the May 11 transaction until Business Day, one of South Africa’s leading financial newspapers, brought it to the stock exchange’s attention.

The trading activity in question involved about ten per cent of the company’s 59.6 million shares. It is not clear at this stage whether insider trading is suspected.

25th July 2007/by Tyrepress Editors

Bridgestone Awarded “Superbrand” Status in Germany

The globally recognised independent authority on consumer opinion and branding, Superbrands, has identified the “Bridgestone” brand as one of the strongest brand names in its 2007 awards in Germany. This year’s German awards are the third held in that country, and the tyre major was one of a hundred companies nominated by the Superbrands judging panel of financial journalists and industry experts.

The stated aim of Superbrands is to identify and spotlight excellent product names in individual countries, and to honour these companies through the conferring of awards. Independent business experts initiate the selection process by first nominating a number of outstanding product brands and trademarks present in their own country. The selection panel then is given the task of evaluating these companies and choosing one hundred that stand head and shoulders above the rest. The criteria for selection are the prevalence and acceptance of the brand name or trademark, customer loyalty, the durability of the brand and the brand value of the business enterprise.

25th July 2007/by Tyrepress Editors

Analysts Expect 41 per cent 1H EBIT Increase

Financial analysts have predicted that Michelin will give details of a 41 per cent EBIT increase (to 910 million) when it publishes details of its first half reslts on 27 July. According to the Deutsche Bank analysis, this corresponds to 10.8 per cent of sales. Net debt is expected to be up by approximately 100 million euros compared with December.

“We expect a net profit of 465 million euros. Our estimates are respectively 6 and 7 per cent above consensus,” the analysts commented, adding: “The second half should show a further improvement, however, we expect the positive pricing effect to be less significant in the second half. This is why after a 41 per cent EBIT increase in H1, we expect only +17 per cent in the second half.” Michelin management is expected to point out that the high rate of profits growth cannot be extrapolated out to a full-year result.

24th July 2007/by Tyrepress Editors

Goodyear Announces Q2 2007 Earnings Release, Conference Call

Goodyear Tire & Rubber plan to report their second quarter 2007 financial results before markets open on Thursday, July 26, and follow this up with an investor conference call at 10:30 am local time. Participating in the conference call will be chairman and CEO Robert J. Keegan, president, North American Tire and chief financial officer Richard J. Kramer and senior vice president, finance and strategy Darren R. Wells.

Prior to the commencement of the call, the company will post the financial and other statistical information that will be presented on its investor relations Website: investor.goodyear.com. Those interested may access the conference call on the Web site or via telephone by calling (706) 634-5954 before 10:25 a.m. July 26. A taped replay of the conference call will be available at 3 p.m. that day by calling (706) 634-4556. The call replay will also remain available on the Website.

24th July 2007/by Tyrepress Editors

Conti & TRW Inflate their Siemens VDO Bids

During the weekend of 21-22 July both Continental AG and TRW Automotive submitted bids in excess of 12 billion euros for Siemens’ VDO unit. This news was reported in the German financial newspaper Handelsblatt and draws upon unspecified sources within the financial industry. The companies involved have chosen to neither confirm nor deny the report.

As part of their offer TRW and Blackstone, the private equity company backing the TRW bid, have allegedly promised not to close any factories in Germany. The Siemens supervisory board is expected to meet on July 25, at which time it will discuss whether to sell the VDO unit to either Continental or TRW instead of floating it in an IPO.

23rd July 2007/by Tyrepress Editors

JV Partner Sought for India’s TCI

The Indian government’s wholly owned and ailing tyremaker, Tyre Corporation of India (TCI) is looking for a joint venture partner to help revive its fortunes. India’s Economic Times newspaper has reported that the government plans to attract a partner that can provide both the latest global technology and pan-India product marketing support.

An official from India’s Ministry of Heavy Industries told the Economic Times: “The matter now lies with the Parliamentary Standing Committee on Industry for a final approval, after a bill (the Disinvestment of Ownership Bill, 2007), was introduced in parliament in May. As and when it is passed, we would move ahead with the revival of the sick unit, through the disinvestment route.”

20th July 2007/by Tyrepress Editors