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Acacia Technologies Licenses Fraud Protection System to Goodyear

Acacia Research Corporation has announced that Financial Systems Innovation LLC, a wholly owned subsidiary of the Acacia Technologies group, has signed a non-exclusive license for credit card fraud protection technology with Goodyear Tire & Rubber Company. The patented technology generally relates to a computerized system for protecting retailers and consumers engaged in credit card, cheque card, and debit transactions. The system includes an electronic card reader, and the generation and use of a transaction number, which specifically identifies each transaction processed within the system. As a result, the retailer does not necessarily have to print detailed information concerning the cardholder’s identity or account number on the customer’s receipt.

21st June 2007/by Tyrepress Editors

Amtel-Vredestein Publishes 2006 Annual Report

Amtel-Vredestein released its audited 2006 Annual Report on June 15. The report remains subject to shareholder approval at the company’s Annual General Meeting of Shareholders, to be held in Amsterdam on June 30. The company previously published its summary 2006 and first quarter 2007 earnings results on 16 May 2007, and the audited accounts as included in this 2006 annual report are substantially the same as the previously reported un-audited results. However a number of adjustments have been made.

The company’s annual sales have been adjusted to $817 million versus the previously reported $823 million. This change occurred because $6 million in revenue has been reclassified as inter-company transactions in the fourth quarter of 2006. Profit from operations also reduced to $33 million from $36 million, primarily because of additional provisions related to AV-TO subsidiary. Net loss was also reduced by $2 million to a new figure of $5 million as a result of approved adjustments.

20th June 2007/by Tyrepress Editors

Nokian tyres Releases Convertible Bonds

On June 20 Nokian Tyres announced its intention to offer convertible bonds to the total value of 130.4 million euros. Nokian Tyres has granted financial services group Nomura International an over-allotment option to subscribe for up to 19.6 million euros of additional bonds solely to cover over-allotments, if any, to a total amount of 150 million euros. The shares to be issued upon conversion of the bonds will represent up to approximately 3.4 per cent of Nokian Tyres’ current issued share capital, assuming the over-allotment option is fully exercised.

At the company’s annual general meeting on April 3 the board of directors were given authority to carry out this operation despite existing pre-emptive subscription rights held by shareholders. The board of directors made the decision to exercise this authority for what it claims are “important financial reasons,” and intend to use the bonds to finance investments “in accordance with the company’s investment strategy”, to re-finance existing financing facilities and for general corporate purposes.

20th June 2007/by Tyrepress Editors

May Shipments Meet Expectations

RMA data indicates that replacement tyre shipments to dealers in May were up 1.1 per cent year-on-year (they were down 3.6 per cent in May 2006). According to Deutsche Bank analysts product mix was better in the month, as light truck tyre shipments were up 4 per cent, while passenger tyres were up 0.6 per cent.

As a result the financial analysts supported their earlier assertions that 2007 replacement tyre demand could track “well ahead of 2 per cent,” adding: “We continue to believe our 2007 Goodyear (Buy) and Cooper Tire (Hold) North American volume assumptions are conservative. Cooper is best positioned in our view to beat volume expectations, given over 40 million units of reduced capacity in the low-end tyre market.”

19th June 2007/by Tyrepress Editors

Ceat Undeterred by Lack of TBR JV Partner

Indian tyremaker Ceat is considering going it alone in the establishment of a truck and bus radial facility if it is unable to find a joint venture partner. The company has set aside approximately £60 million for the project but to date has not made any commitment to work with another manufacturer.

Speaking to India’s Financial Express newspaper, Ceat’s president of sales and marketing, Arnab Banerjee, said, “We are in talks with some of the leading radial technology providers in the global arena. But we are yet to reach a consensus with any of them. If the joint venture option doesn’t work out, we will definitely explore the possibility of doing it ourselves.” He added that Ceat “have the skills and the know-how,” to establish a truck and bus radial facility without external assistance.

19th June 2007/by Tyrepress Editors

Ford Looks to Unload Euro Marques

(Akron/Tire Review) While the company is not commenting, Ford Motor Co. is actively seeking a buyer for its European luxury vehicle group, which includes Volvo, Land Rover and Jaguar. Ford has reportedly retained two major financial firms to arrange the sale, and wants to move quickly to move the brands.

It is unclear if Ford wants to sell the three fabled marques as a group or is willing to part with them individually. Ford lost some $13 billion last year and is looking for ways to trim costs. Its Premier Automotive Group, which managed the brands worldwide, lost $2.32 billion last year.

13th June 2007/by Tyrepress Editors

Two New China Execs for Cooper Tire

Cooper Tire has named two new executives for its operations in China. Andrew Weiwen Chen has been appointed the new deputy general manager for Cooper Chengshan Tire Company, as well as director of finance for Cooper China. Mr. Chen’s primary association will be with Cooper Chengshan, although he will also have some financial responsibilities for Cooper’s China operations.

Reporting to Chuck Taylor, Cooper Chengshan’s general manager, and Jerry Long, chief financial officer for Cooper Asia, Mr. Chen will manage business planning and analysis, accounting and reporting, budget preparation, and treasury requirements.

13th June 2007/by Tyrepress Editors

Japanese Michelin Plant to Focus on Hi-Tech Offerings

Michelin has decided to specialise tyre production at its facility in Ota, Japan so it can, as the company stated in a press release, “respond more effectively to the specific, highly technological requirements of the local market.” The plant’s efforts will focus upon Japanese demand for sophisticated products such as the directional tread studless winter X Ice tyre, which was especially designed for the Japan market.

The Ota plant will also provide support for Michelin’s R&D centre in Asia, thus strengthening Michelin’s research operations in Japan. To accommodate these changes, the plant will terminate production for other export markets, which represent approximately 60 per cent of its current output, and adjust its production capacities accordingly. Based on an initial estimate of the cost of the plan, a non-recurring expense of roughly 65 million euros will be recognised in the Company’s first-half 2007 financial statements.

11th June 2007/by Tyrepress Editors

JK Tyres Considering Return to 2 & 3 Wheeler Market

According to news published in an Indian business daily, JK Tyre & Industries is considering a return to producing tyres for the two and three wheel vehicle market after a long absence. Company president Arun K Bajora told the Financial Express “We are examining the possibility of entering into the two-wheeler and the three-wheeler space. We want to offer a complete package to the dealers and customers.”

At present JK Tyre specialises in supplying both radials and bias tyres for passenger car, truck and agricultural vehicles in its homeland and holds a 25 per cent market share in the almost £2 billion per annum domestic market. Of this motorcycle and three-wheeler production in the 2006-07 year stood at around 26 million units, an increase of 24 per cent over the previous year. This is higher than any market segment apart from tractor trailer tyres, and perhaps too tempting a growth not to capitalise on. In contrast, the overall Indian tyre market only grew by 11 per cent during the same period.

8th June 2007/by Tyrepress Editors

Matador Q1 Earnings up 18 Per Cent

During the period between January 1 and March 31 2007 the Matador group reported earnings of SKK 4.54 billion (£90.6 million), an 18 per cent increase on the same period in 2006. From this figure, Matador’s rubber division recorded earnings of SKK 3.52 billion (£70.3 million), and of this 78 per cent was generated via the company’s M-Pneu tyre division

During the three-month period the group reached a pre-tax profit of SKK 296 million (£5.9 million), SKK 47 million (£938,000) more than during January to March 2006. The company’s rubber business earned SKK 278 million (£5.5 million) and its automotive division SKK 18 million (£359,000). Profit to sales ratio reached 7.3 per cent, attributable largely to lower operating costs at the beginning of the year.

6th June 2007/by Tyrepress Editors

Gajah Tunggal Bond Top Up Attracts $1 billion

According to news published in Finance Asia, Indonesia’s PT Gajah Tunggal re-opened its July 2010 bond programme on June 4, pricing US$95 million worth of 10.25 per cent guaranteed senior unsecured notes through financial services groups Credit Suisse and Lehman Brothers. The B2(stable)/B(positive) Reg-S transaction (a transaction conducted without registration under the US Securities Act) attracted orders to the tune of $1 billion.

The re-opened bonds priced at 102.75 (yielding 9.2 per cent), in contrast to the existing bonds, which as of June 4 traded at 103.125 or 9.07 per cent. The new issue price equates to a yield spread of 423.9bp over two-year Treasuries. The transaction tapped the company’s existing $325 million bond programme due to mature in 2010, raising the total size of the programme to $420 million.

5th June 2007/by Tyrepress Editors

Bridgestone Announce Management Changes

On May 31 Bridgestone Corporation announced that the company’s board of directors have approved a number of top-level management changes, to become effective July 1. Hideo (Hank) Hara, who served as executive vice president, Tire Development and Technology with Bridgestone America at their Akron Technical Center until returning to Japan in mid-October 2006, is to assume the position of vice president and officer, Original Equipment Tire Sales. His role prior to July 1 is that of vice president and officer, Original Equipment Tire Sales and Motorsport.

1st June 2007/by Tyrepress Editors

Time to Update the Rolodex

On May 31 Bridgestone Corporation announced that the company’s board of directors have approved a number of top-level management changes, to become effective July 1. Hideo (Hank) Hara, who served as executive vice president, Tire Development and Technology with Bridgestone America at their Akron Technical Center until returning to Japan in mid-October 2006, is to assume the position of vice president and officer, Original Equipment Tire Sales. His role prior to July 1 is that of vice president and officer, Original Equipment Tire Sales and Motorsport.

1st June 2007/by Tyrepress Editors

Plimsoll Produces Tyre Prosperity League Table

A new league table from leading financial analysts Plimsoll Publishing aims to provide an answer to that age-old question in the Tyres, Exhausts & Batteries market: Why do some companies fail and others prosper?

The equation is not as simple as strong sales equals survival. Nor is the success rate of a firm automatically affected by market conditions. Instead, they say, it depends on the ingredients in a finely-balanced recipe that includes good margins, low borrowing, responsible management and foresight.

Plimsoll’s new analysis of the market weighs all these ingredients and turns them into a unique one-page snapshot of each company’s prospects. From that, it establishes a league table based on 1000 leading firms that looks like this: 278 companies are in a strong position, with a pre-tax margin of 10 per cent; 116 are in the good sector, on 4 per cent margins; 160 are rated as mediocre, on 3 per cent; 272 are in the “caution” category and 174 are in the “danger” range.

25th May 2007/by Tyrepress Editors

‘Wind of Change’ Blowing at Amtel

Deutsche Bank analysts have upgraded their rating for Amtel-Vredestein from Hold to Buy, suggesting a 12-month target price of $7.97. “We forecast the pre-tax profits (EBITDA) margin to improve from 12 per cent at present to 15 per cent in 2009 on better retail margins and the cost benefits of producing premium tyres domestically,” the analysts reported.

Deutsche Bank predicts company revenues will grow at a compound annual growth (CAGR) rate of 8 per cent to $1.6 billion in the next eight years. By 2015 EBITDA is predicted to grow to as much as $241 million on the back of increasing sales of Vredestein tyres in Russia and expanding retail operations.

“The stock, in our view, has been severely oversold since its 2005 IPO, as the company did not achieve the announced goals. We believe that Alfa Group, which accumulated a blocking stake in Amtel at the end of 2006 and which is well-known for its ability to turn troubled companies around, will help Amtel realize maximum value from its strategy and improve financial situation,” the analysts conclude.

23rd May 2007/by Tyrepress Editors