financials Archives - Page 102 of 134 - Tyrepress

Posts

Tiger Automotive Not Affected by TiWheel Complications

Wheel and tyre wholesaler/retailer Tiger Automotive, who operates in both the UK and South African markets, is reportedly not vulnerable to any possible claims made by creditors of Tiger Wheel. According to company CEO Keith Rivers, “When Tiger Automotive was unbundled from Tiger Wheel Limited in December last year, the separation was complete. As far as I am aware there were no cross guarantees.”

TiWheel shares were suspended from trading on July 11, and the company’s recent financial results have been disappointing. However Rivers states that Tiger Automotive is in good shape and looking forward to a slight increase in year-on-year earnings to end June. He added that two ‘constraints’ to Tiger Automotive had been resolved – the 16.5 per cent anti-dumping duty on Chinese tyres has been removed, and problems regarding deliveries to Yokohama South Africa from Japan have been almost totally overcome.

13th July 2007/by Tyrepress Editors

JK Tyre Aiming to Increase Turnover by More than 50%

It is hoped that JK Tyre and Industry’s Rs 11 billion (£135 million) capital expenditure and capacity increase from 9 million to 12 million units will help towards the company achieving a turnover of Rs 50 billion (£610 million) within three years, claims chief financial officer A K Kinra. Mumbai based publication DNA has reported Kinra as stating “We are aiming to grow by 20 per cent annually over the next 3-4 years. We hope to be a Rs 5,000 crore (£610 million) company by 2010.” Currently JK Tyre has an annual turnover of Rs 30 billion (£366 million).

Kinra added that the current slowdown in India’s car industry was not of concern to JK Tyre as OE contracts only make up about 10 per cent of the tyremaker’s business, with the rest coming from the replacement and export markets. “The slowdown has only a marginal impact on us. In the aftermarket space, we see a robust demand,” he said.

13th July 2007/by Tyrepress Editors

Metro Tyres to Offer Share to Conti

India’s Metro Tyres is reportedly willing to offer technical collaboration partner Continental a minority stake in its business. According to an article published in the Indian financial daily Hindu Business Line, Metro Tyres group managing director Rummy Chhabra said that a share of the company could be offered to Continental when Metro’s planned IPO – from which the company hopes to raise about Rs 1 billion (£12 million) – takes place in 18 months’ time, or possibly even beforehand.

Metro plans to increase their presence in Europe and Continental’s assistance has been invaluable to this end. Mr Chhabra said Continental was willing to help Metro enter its home European market as both companies’ products complement each other. “While we address the budget segment, Continental plays in the premium end of the market. Hence our products do not overlap each other.” The Indian tyremaker has already opened an office and warehouse in Barcelona, from where it will market its Ortem brand tyres and tubes to European markets. Mr. Chhabra said the company expects European sales to contribute up to £10 million to its total revenue during the first year.

13th July 2007/by Tyrepress Editors

Cooper Appoints New Investor Relations Director

Cooper Tire & Rubber has named Curtis Schneekloth as the company’s new investor relations director. Scheekloth’s main role is to be that of spokesman on financial issues, communicating with stock market analysts and investors. Employed by Cooper since 2003, Schneekloth has most recently held the position of lead accountant in Strategic Planning, a role he has performed since January 2006. Prior to joining Cooper Schneekloth held a number of financial roles in both the US and the Czech Republic.

Speaking of the appointment, Chief Financial Officer Phil Weaver said, “Curtis Schneekloth shows a keen understanding of Cooper’s operations, as well as offering a mix of international and entrepreneurial experiences.”

12th July 2007/by Tyrepress Editors

Amtel-Vredestein Eurobond Plans may be Shelved

The new CEO of Amtel-Vredestein has indicated that the company’s plans for a debut eurobond issue of 150 million euros may be dropped. Petr Zolotarev, who began his new role on July 1 following the resignation of Alexei Gurin, told the news agency Reuters that “It may happen that the eurobonds will hamper the company’s restructuring.” However he added that the final decision had not as yet been taken.

The eurobond release was planned in order to re-finance existing debt, and financial services group Nomura International was to manage the sale of the three-year eurobonds, due on sale June 30. Amtel-Vredestein has debt of around 475 million euros, which arose from the company’s numerous past acquisitions, and Zolotarev is eager to return the company to the black. “We need a revision in our development strategy,” he stated.

11th July 2007/by Tyrepress Editors

Business Booming for Kirkby Tyres & Wheels

In the last five years Kirkby Tyres & Wheels has grown rapidly. After impressive sales growth of 20 per cent (by value) in 2005, the company repeated this performance in 2006 with sales growing 18 per cent. And, at the end of the first quarter of 2007 sales are again up roughly a fifth. Speaking to Tyres & Accessories, managing director Dave Dorrity puts the companies success down to its increasingly successful imported lines including Double Coin, Alliance and Protector; the growth of its wheel and wheel and tyre assembly business; and the rationalisation of its warehousing operations.

Financial analysts at Plimsoll publishing have picked up on the company’s growth too – ranking Kirkby as a UK Top 50 leader in efficiency and also one of the 50 most cash rich company’s in the UK tyre trade. See the forthcoming issues of T&A for more details on the growth of this import/export, commercial, industrial and agricultural tyre specialist.

11th July 2007/by Tyrepress Editors

Myers Industries Shareholder to Vote Against Proposed Purchase

(Akron/Tire Review) On July 23 in Akron, Ohio, Myers Industries shareholders are expected to vote on the proposed $1.07 billion purchase of Myers Industries by GS Capital Partners, a private-equity unit of Goldman Sachs.

One of Myers Industries’ shareholders, Mario Gabelli, stated in a letter filed with the Securities and Exchange Commission that he would vote against the merger proposal. Gabelli’s investment company holds more than 3.1 million shares (8.9% of outstanding shares) of Myers Industries.

In his letter, Gabelli stated that federal TPMS requirements present opportunities for the company’s automotive service business and that financial projections do not include benefits gained from a potential financial restructuring. However, Myers Industries’ board of directors reportedly supports the purchase.

9th July 2007/by Tyrepress Editors

Goodyear Jamaica to Rebuild With Investment

In 2006 Goodyear Jamaica Ltd’s profits nose-dived more than 65 per cent, which was followed by a fire in January which meant its distribution network took a hit. However, at the beginning of July Goodyear Jamaica’s management announced plans to double its sales. In its first quarter to March, Goodyear posted losses of $3.8 million, saying the warehouse fire had consumed its profits.

“Inventory is almost 95 per cent back to its original level, and we have a full complement of staff to help regain the dominant position in the market,” Financial Controller Andrew Peart told local news sources, adding: “We will be selling the features and benefits of the product to consumers as we don’t think that the product is well differentiated in their minds.”

Jamaica had a tyre market of 1,008,116 – all imports – valued at just under $2 billion in 2004, according to the most recent data from the Statistical Institute of Jamaica.

9th July 2007/by Tyrepress Editors

Hayes Lemmerz Completes Sale of Powertrain Components Facility

On July 5 wheel and automotive parts manufacturer Hayes Lemmerz International announced the sale of Hayes Lemmerz International – Wabash, Inc., a wholly-owned subsidiary that operates its Wabash, Indiana facility, to Harvey Industries LLC, a privately held company based in the US. Under the terms of the agreement, Harvey Industries has acquired all assets of the subsidiary. The financial terms of the transaction remain undisclosed.

The Wabash facility employs about 325 employees and manufactures intake manifolds, cylinder heads, water pump housings, and cast iron exhaust manifolds. “This transaction will further enhance Hayes Lemmerz’ goal to strengthen our financial position and to focus on initiatives in select geographic regions that will improve the growth of our company,” said Curtis Clawson, Hayes Lemmerz president, CEO and chairman of the board. “At the same time, this transaction will provide the Wabash facility the opportunity to grow with Harvey Industries.”

6th July 2007/by Tyrepress Editors

Recall Plan Submitted, NHTSA Reviewing It

(Akron/Tire Review) Even as Chinese tyremaker Hangzhou Zhongce Rubber Co. continues to deny any wrong-doing, importer Foreign Tire Sales has reportedly submitted to NHTSA a plan for the recall of as many as 450,000 allegedly defective tyres. News reports say that FTS is setting up procedures to recall and replace the subject tyres – sold under the Westlake, Telluride, Compass and YKS brand names. NHTSA must approve the plan, and there remains some questions about FTS’ financial ability to conduct the recall.

Earlier, FTS said recalling all 450,000 tyres in question would force the company into bankruptcy. NHTSA has no provision to facilitate a complete recall should that happen, and reports state that Hangzhou Zhongce Rubber Co. refuses to provide financial assistance. Last week, news reports said FTS suggested it may only be able to afford recalling perhaps 10 per cent of the subject tyres.

4th July 2007/by Tyrepress Editors

National Tyres Outlines Expansion Plans

National Tyres and Autocare has plans to open 14 new branches in Scotland by the end of 2008. Chairman and chief executive Alan Revie, who led a management buy-out of the company from Continental in 2001, reportedly sees these new additions to National Tyres as a first step in an expansion that will see the company operating more than 400 sites throughout the UK. At present National Tyres operates 204 outlets nationwide. “We are looking to expand the network and, as the first stage of a UK wide strategy, have identified 14 towns and cities across the central belt and Highlands where we plan to open branches by the end of 2008,” said Revie. “The funding is in place to do it, we have already opened a new branch in Falkirk and another will open shortly in Edinburgh.”

The company has reported healthy sales during 2007, with six-monthly results to June 30 showing sales of £51 million, up 19 per cent from the same time last year. Parent company the Axle Group has reported pre-tax profits of £5.7 million for the 2006 calendar year, a 17 per cent increase on the 2005 results. According to Revie “2006 and the first half of 2007 have been driven by excellent performance across the group. We are confident that we can sustain the growth trajectory of the business and I expect to see further improvement in both turnover and profits through our core business of selling tyres and as the results of our investment in MOT centres and the brakes programme begin to feed through to the bottom line.”

3rd July 2007/by Tyrepress Editors

WRAP Names Three Funding Recipients

Three companies have become the recipients of grants from the Waste & Resources Action Programme (WRAP) as part of their initiative to help businesses increase their capacity to reprocess old tyres. The initiative was open to any business involved in the reprocessing of tyre waste that would otherwise have ended up as landfill.

One of the recipients, Bristol Tyre, is a newcomer to the tyre processing industry and WRAP has provided support by funding a shredding machine and related equipment. A second recipient, McGrath, will use the WRAP funds to purchase tyre shredding and granulating equipment along with a loading shovel and grab machine. The third company, Great Yarmouth’s Aquablast, has developed bespoke machinery to remove steel from tyre rubber via high pressure water blasting. The WRAP funding has enabled Aquablast to create a machine capable of handling earthmover tyres.

2nd July 2007/by Tyrepress Editors

Yokohama Appoints Two to Management Posts

(Akron/Tire Review) Yokohama Tire Corp. has named Gregg Vandermark performance marketing manager and Rusty Taylor manager of finance and administration in the business division. Vandermark will oversee corporate and consumer ride and drives, dealer training and work with automotive enthusiast groups and car clubs. Vandermark had previously been motorsports sales manager and ultra-high performance sales manager at Toyo.

Taylor, who earned a master’s degree in business administration from the University of Southern California, will plan and forecast budgets, review proposals, generate financial models and develop business plans for sales, marketing and finance.

27th June 2007/by Tyrepress Editors

Bridgestone Revises Profit Forecast

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).

27th June 2007/by Tyrepress Editors

Siemens Receives Three Bids for VDO Unit, Continues to Favour IPO

(Akron/Tire Review) Siemens AG has received three bids for its automotive unit VDO but continues to favour a public offering, German newspaper Handelsblatt reported, citing company sources. “The IPO is clearly the number one option,” a Siemens spokesman told the newspaper. According to the report, Continental AG and TRW Automotive have submitted a bid. The third bid may have been made by financial investors KKR and Permira, the newspaper said, citing industry sources. All three bidders are now to receive detailed VDO figures for further examination, the report added.

21st June 2007/by Tyrepress Editors