Goodyear Tire & Rubber Company has appointed Laura Thompson as vice president of business development reporting to Darren Wells, senior vice president of business development and treasurer. The move became effective 1 June 2005.
Bridgestone is taking the lead in the race to acquire Kwik-Fit. According to the Financial Times, the Japanese manufacturer has teamed up with Mitsubishi Corporation to bid for Kwik-Fit and has already seen off early interest from Michelin and Wal-Mart. Bridgestone executives have been in London since last month working on their bid. “They are taking it very seriously,” said one person close to the auction. The Japanese group has a strong presence in the US through its Firestone unit, but has long been trying to crack the European market and looked at Kwik-Fit the last time it was on sale.
Pirelli & C SpA has sold its Energy and Telecom Cables and Systems business to Goldman Sachs for 1.3 billion euros. So what will the investment company get for its money? In 2004 the cable business turned over more than 3.2 billion euros, with an operating income (EBIT) of more than 110 million. The transaction includes intellectual property rights and Pirelli brand licensing for two years. While the business itself employs 12,000 people in its 52 plants around the world.
Following yesterday’s news of strike action at Apollo Tyres’ Vadodara factory the manufacturer has released more details of the circumstances surrounding the “illegal strike.”
The industrial action is being conducted by only one of the three unions representing workers at the plant that employs roughly 3000 people, an Apollo Tyres spokesperson told Tyres & Accessories. None of the manufacturer’s other factories are reported to be involved in the troubles.
Reifen-Seher, an independent tyre company with 17 outlets and a turnover of about 25 Million euros has been sold to Bridgestone, report sources close to the company.
Reifen-Seher’s headquarters are based in Friedberg/Hessen. The company runs all of its outlets in the Frankfurt/am Main area.
It is thought that Seher ran into financial trouble two years ago, but at the time was strong enough to overcome the problems which might have eventually led to the decision to sell.
Peter Seher still stands as president of the German Tyre Dealer Association, his BRV term ends at the end of this month. Seher announced his departure as president some weeks ago.
Superior Industries International, has announced a 3.2 per cent increase in the company’s quarterly cash dividend, to $0.16 per share at today’s AGM. The new, higher dividend is payable to shareholders on 15 July 2005.
“We always are pleased to increase the cash dividend, particularly as we are faced with the difficult challenges of an increasingly competitive environment and the rapid globalisation of the automotive industry,” said president and chief executive officer, Steven Borick. “This latest dividend increase demonstrates the Board’s conviction that we have the right long-term strategy to protect and enhance our industry leadership, and the discipline, determination, and resources required to successfully implement our plans for the future.”
Executives at Michelin’s AGM have reiterated their target of achieving at least the same operating profit margin in 2005 as they did in 2004, despite lower volumes in the first half of this year. At the same time the company appointed Michel Rollier as new managing partner.
(Akron/Tire Review) Various companies are lining up, according to reports in the Slovak Spectator, to protest the special incentive package the Slovakian government has extended to Hankook Tire as an inducement to get the South Korean tyre maker to build a new plant there.
Slovakian tyre company Matador Púchov and members of Klub 500, an association of companies, say the investment incentives offered by the government are unfair and may exceed established limits. Matador, in particular, said the incentives place it at an unfair advantage.
(Akron/Tire Review) Hercules Tires & Rubber Co has officially announced that its senior management has “partnered” with private equity firm FdG Associates to acquire the Findlay, Ohio-based private brander and distributor. Hercules’ 33 dealer shareholders voted to sell their share to FdG
According to its statement, Hercules said the transaction was financed with equity from FdG’s second institutional fund, FdG Capital Partners II LP, and “will provide Hercules with the capital to further expand its Hercules branded private label program, solidify its industry position and capitalize on opportunities for continued growth and acquisitions.” Details of the deal were not disclosed.
(Akron/Tire Review) Publishing 2005 financial results, Yokohama Rubber Co has reported that it achieved net sales of approximately 419.8 billion yen (£2.1 billion), up 4.5 per cent from the year prior. The company also reported favourable overseas sales in Europe, Asia and the Middle East, while replacement market sales in Japan were also up. Yokohama’s Tire Group sales increased 6.7 per cent, to 307.9 million yen (£1.5 billion). Yokohama’s management projects a 6 per cent increase in net sales, a 14.5 per cent rise in operating income, and a 1.6 per cent increase in net income in the 2006 financial year. Group operating income grew 19 per cent to roughly 18.2 billion yen.
(Akron/Tire Review) According to a report by Queensland Newspapers, Bridgestone Australia shareholders failed in a bid to oust members of the company’s board of directors at the firm’s annual meeting 9 May. Meanwhile, Bridgestone Australia chairman and CEO Makio Ohashi told shareholders that the financial situation wasn’t going to get better, warning of continued lower profits because of escalating raw materials costs and competition from imports.
Size and scale are no advantage when it comes to overall financial success, according to a new study by Tyre Manufacturers & Distributors industry analysts Plimsoll Publishing. It seems the industry’s smaller players are putting their larger counterparts to shame when it comes to overall financial performance.
The top 60 “major players” currently control almost 94 per cent of the market. Yet look beyond their size at their individual financial performance and their image appears somewhat staid, according to Plimsoll analysts.
Car parts maker Visteon Corp, is to delay publishing its first-quarter earnings report while it sifts through financial records that it suspects might be bogus. The Michigan based company identified errors in costs relating to freight and material surcharges, raising questions about possible “improper conduct by a former senior finance employee” charged with overseeing North American purchasing.
The company reports that up to $31 million in first quarter charges published in first quarter results may need to be restated. Visteon said that its ongoing discussions with former parent company, Ford, won’t be affected by the news.
(Akron/Tire Review) A press statement issued today by FdG Associates, a private equity company based in New York City, indicated that it is assisting Hercules Tire & Rubber Co. to “recapitalise its business in partnership with management.”
According to the statement, “This transaction will allow Hercules to strengthen its financial base, further develop its private label programme, solidify its position in the distribution of private label and branded tyres, and capitalise on growth opportunities. Hercules’ relationships with its customers and suppliers will remain unchanged.”
No other information was made available, and, according to the statement, “further details will be made available shortly when the transaction closes.”
Releasing its first quarter 2005 results, Continental’s management reaffirmed the company’s desire to achieve ambitious targets. During the first quarter, consolidated sales rose by 8.9 per cent to 3,253.1 million euros, with newly acquired Phoenix contributing 237.7 million euros.
At the same time EBIT increased by 9.5 per cent to 281.7 million euros, according to the company. Phoenix is reported to have generated an operating result of 11.3 million euros. Consolidated earnings climbed to 167 million euros, representing a 24.8 per cent increase. Earnings per share rose to 1.15 euros.
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