(Akron/Tire Review) US District Court Judge John Adams has dismissed the class-action lawsuit alleging securities fraud filed against the Goodyear Tire & Rubber Co. and some of its current and former officers.
Village Motor Company in Wallasey has become the first member of Blackcircles’ franchised dealer network. The launch meant coming full-circle for Blackcircles’ MD, Mike Welch, as it is just 10 miles from where he launched his first tyre business in Garston at the age of 17. Blackcircles reports that it has been “inundated” with enquiries since it launched its bolt-on franchise option.
Michelin has increased its financial stake in Hankook, purchasing an additional two million shares – equivalent to 1.3 per cent of the Korean manufacturer’s share capital – for US$26 million.
In the USA, Hayes Lemmerz is to close its cast aluminium wheel factory at Huntington, Indiana by the end of its financial year’s second quarter. Closure of the plant, which employs 185 people, is part of Hayes Lemmerz’s on-going programme of rationalisation.
Axle Group executives have announced plans to acquire up to 200 independent retail outlets across the UK in an effort to double the number of branches in the company’s National Tyres chain. Group financial director, John Kemp told Tyres & Accessories that National Tyres is “actively looking” for the right kind of acquisition targets and is “prepared to borrow” to do this. In his words, expanding the retail network is a great opportunity to “further enhance (the) bottom line.”
The announcement coincides with the publication of the company’s financial results, which show that the company achieved £121.4 million of sales in 2005, up 7 per cent on the previous year. During the period Axle Group recorded an operating profit of £883,000, almost £9 million more than the company reported in its 2004 accounts.
In 2005 Pirelli & C SpA achieved double digit growth in revenues (+14.6%), operating profit (+32%) and net profit (+31.3%) compared with the previous year. Publishing its 2005 full-year results, the group explained that it had reduced net debt to 1,177 million euros at the end of 2005. At the consolidated level, group revenue totalled 4,546 million euros, an increase of 14.6 per cent from 3,967 million euros in 2004. EBITDA totalled 568 million euros (12.5% of sales), an increase of 21 per cent from 470 million euros in 2004 (11.8% of sales).
ArvinMeritor, Inc has sold its North American Light Vehicle Aftermarket (LVA) exhaust business based in Loudon, Tennessee and Moncton, New Brunswick, Canada, to IMCO (International Muffler Company), a producer of aftermarket exhaust systems and components based in Schulenburg, Texas. Terms of the agreement were not disclosed.
Cooper’s recent 2005 results may have shown full-year losses, but they also show that the company’s inventories would have been $125.6 million (41 per cent) higher “had they used FIFO instead of LIFO.” The results have implications on the way other company’s results are interpreted. “As a result, we would expect a substantial earnings impact from raw material cost inflation in the quarters ahead,” Deutsche Bank analysts said referring to Goodyear.
(Akron/Tire Review) News reports say that Continental AG is looking to purchase portions of struggling Delphi Corp.’s non-U.S. businesses. Continental CEO Manfred Wennemer confirmed the talks at the Geneva Motor Show. “We wouldn’t want any UAW (United Autoworker) factories,” said Wennemer in an interview at the auto show. “There are a lot of other opportunities – Asia, Europe – where we’d be interested in buying. It all depends on what’s available.”
Fourth quarter financial figures from wheel manufacturer Accuride were “somewhat disappointing,” according to Deutsche Bank pundits. Sales were up two per cent, against an expected 11 per cent. Lower volumes and high aluminium prices were cited as the reasons. The analysts are lowering their estimates for 2006 for Accuride, but are maintaining their “Hold” rating.
Tool company Snap-on will join forces with Snap-on Diagnostics and Snap-on Equipment at the Automotive Trade Show to demonstrate their combined ability to deliver a complete solutions package for the workshop and technician.
Michelin has reported an operating income of 1,368 million euros for 2005, up 5.1 per cent on a year earlier. According to Financial Times Deutschland, this is well above financial analysts’ estimates and reflects the higher prices that Michelin has been able to achieve, more than compensating for raw material cost increases.
Bridgestone Corp’s full-year 2005 figures show that the company’s net profit surged 58 per cent last year to 180.7 billion yen (£877 million, 1.283 billion euros). In the 12 months ended 31 December annual sales rose 11 per cent to 2.69 trillion yen (£13.072 billion, 19.123 billion euros). The majority of the corporation’s turnover came from its tyre business, which contributed 2.156 trillion yen (£10.474 billion, 15.311 billion euros) a 12 per cent increase on the 1.931 trillion it generated in 2004.
The Trelleborg Industrial Group has published its financial results for 2005. Net sales were 24,170 million Swedish Kronor (SEK) or 2.57 billion euros, compared with the 2004 figures of SEK 22,912 m (2.43 bn euros). Net profits for the year, excluding restructuring costs, amounted to SEK 1,177 m (125.3 m euros); five per cent higher than the 2004 figure of SEK 1,122 m (119.4 m euros).
What Car? has continued its criticism of the UK garage business by publishing an investigation into car servicing costs at 200 UK dealers. The research shows it can be cheaper to employ a barrister or a doctor than a mechanic.
According to the magazine, consumers frequently pay more than £100 per hour for labour at franchised dealers. Hourly rates vary across the country, from £49 for Vauxhall in Scotland to £140 for BMW in London. A locum doctor charging between £350 and £500 per day is cheaper. Even a criminal law junior barrister will charge as little as £30 per hour.
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