BERU increases revenues by more than 16%
In the 2003/04 financial year (ending March 31, 2004), BERU Aktiengesellschaft (Ludwigsburg) increased its sales revenues by 16.4% from €304.5 million to €354.5 million.
In the 2003/04 financial year (ending March 31, 2004), BERU Aktiengesellschaft (Ludwigsburg) increased its sales revenues by 16.4% from €304.5 million to €354.5 million.
SmarTire Systems Inc. (OTCBB: SMTR) announced that the Company has signed a $15 Million Standby Equity Distribution Agreement with Cornell Capital Partners LP. This financial instrument replaces the $15 Equity Line of Credit arranged by HPC Capital Management in 2003. SmarTire also announces that it has arranged a second $750,000 unsecured, promissory note with Cornell Capital.
Analysts MorganStanley have upgraded Nokian shares from “Underweight-V” to “Equal Weight-V”. This follows good first quarter financial figures and the company’s reorganised strategy to pursue growth in the Russian tyre market, which involves investing 52 million Euro in building a new factory near St. Petersburg.
In the UK, the Tyre Industry Council plans a series of radio advertisements to support the growing number of regional tyre safety campaigns. The 30-second safety messages are the result of a commitment by members of the British Rubber Manufacturers Association to contribute financially towards the radio campaigns, which will go on air in the north-east and north-west of England, Scotland and Northern Ireland. The major TIC Associates in these areas have agreed to match the financial contribution. The first adverts can be heard this month in support of the north-east Tyre Safety Campaign.
Bandag announced that Yellow Roadway Corporation elected on April 30, 2004 not to renew the existing Bandag outsourcing agreement for Roadway Express tire and wheel services in place since 1999. Under the existing agreement Yellow Roadway is obligated, by August 1, 2004, to repurchase all tires and wheels owned by Bandag and used on the Roadway Express fleet. Bandag estimates the value of the tires and wheels to be approximately $37.0 million. The definitive purchase price is subject to an inventory and valuation pursuant to the terms of the existing agreement.
The TBC Corporation has turned in a strong financial performance for the first quarter of the year. Net sales were up by 69 per cent to $433.8 million (1Q 2003: $256.5 m) while net income rose by more than nine per cent to $6 million ($5.5 m). In volume terms, tyre sales rose by 32 per cent. Both wholesale and retail divisions performed well and TBC expects annual earnings to be better than originally forecast.
A report in the Financial Times suggests that, if Formula One cars continue to develop as they are, within three years they may be too fast for many F1 circuits. As an example, Michael Schumacher’s qualifying time for the Malaysian GP was four seconds faster than last year’s pole position time. The tyre rivalry between Bridgestone and Michelin is responsible for an improvement of over a second per lap, says the article, and it warns that, if development continues, steps may have to be taken to reduce the cars’ performances.
DaimlerChrysler (DCX) has ruled out giving any further financial support to Mitsubishi (MMC), in which the German company has a 37 per cent stake. This surprised analysts, who had been expecting DCX to invest up to 4 billion Euro, but is seen as a positive move with a beneficial effect on DCX cash flow.
American auto supplier, Federal-Mogul, continued to make a loss during the first three months of 2004 but sales figures reveal a turnaround in trading. The company´s first quarter report show increased operating sales of $186 million resulted in net losses of $20 million – down $17 million on the same period in 2003. Federal-Mogul, which continues to undergo financial restructuring after filing for bankruptcy under Chapter 11 in 2001, has attributed the improvements to higher sales of original equipment in both Europe and North America, lower interest payments and favourable exchange rates. Management have also stated that trading figures will not be adversely affected despite a substantial loss of equipment and stock following a fire at the company´s distribution centre in Tennessee. Federal-Mogul currently has one wheel plant, based in Poland, where it produces tyres for a number of German wheel manufacturers.
Goodyear Dunlop Tires Europe has strengthened its position in Scandinavia with an agreement to buy the outstanding shares of one of Sweden’s major retail tyre groups, Däckia. The company expects to complete the purchase of the chain by the end of June. Goodyear Dunlop currently owns 50 per cent of the shares with the remaining being primarily owned by Procuritas (26%) and Däckia management (24%). Financial terms of the deal were not disclosed. Däckia has more than 60 company owned stores, as well as 31 contract partners in cities throughout Sweden, with annual sales revenue of approximately $65 million. Däckia is widely regarded as one of the most successful tyre retailers in the Nordic Region.
Gummiwerk Kraiburg closed the 2003 financial year with positive results. The company reported reports sales up by nine per cent in comparison with the previous year, and a rise in turnover amounting to six per cent. With sales up by 20 per cent, the „hotcure“ segment showed above-average progress, while „precure“ remained steady at two per cent up. Kraiburg report that the Central European market is holding up at last year’s level and the Eastern European markets are growing.
Pirelli has published its financial results for 2003, which show positive results from the company’s recent cost-cutting strategy. Group turnover was down slightly to 6.67 billion euro (2002: 6.72 bn), but turnover in the tyre sector rose from 2.86 billion euro in 2002 to 2.97 billion euro last year. EBITDA rose from 523 million Euro in 2002 to 628 million for the last year. The operation income is 268 million Euro (2002: 118 million Euro). Net profit increased form -405 million Euro in 2002 to +4 million Euro last year. Looking at the tyre sector, the turnover rose 11.6 per cent. 7.5 per cent of this was attributable to increased volumes and the remainder to improved prices and product mix, notably in the high performance sector. Operating income was 220 million euro (2002: 191 m); an increase of 15 per cent, while net profit was 129 million euro (78 m). Overall, prospects for 2004 are bright, says Pirelli as the company expects to continue reaping the benefits of its cost-cutting and simplification measures. In tyres, Pirelli is looking forward to yet further improvements, based on its continued focus on the high performance sector, predicted growth in the North American and Chinese markets and relocation of production to reduce costs.
Goodyear Tire & Rubber Co. on Tuesday again said it needed more time to finish a financial report for federal regulators because of its probe of accounting problems at overseas operations. The company said after the markets closed that it would tell the Securities and Exchange Commission that its annual 10-K report will be delayed because of the investigation of accounting problems in Europe and elsewhere. Goodyear shares plunged more than 5.6 percent, or 44 cents, in extended trading Tuesday, after closing at 7.84 dollars, up 26 cents, on the New York Stock Exchange. However, after-hours trade climbed on the news of the delay, rising 3.5 per cent to 8.12 dollars on INET.
Gary C. Schroeder has been appointed director of financial planning and analysis for Cooper’s global tyre operations. Schroeder came to Cooper Tire from the Cooper-Standard Automotive where he had been serving as global director of cost and reporting since 2002.
Titan International’s financial results showed year on year a pre-tax improvement with reported net sales of 120.5 million US Dollars for the fourth quarter (up 11 per cent from 2002) and 491.7 million US Dollars for the year ended December 31, 2003 (up 6.2 per cent from 2002). Titan recorded a loss before income taxes of 33.7 million US Dollars for the year, compared to 44.3 million US Dollars in 2002. Maurice Taylor Jr., Titan president and CEO said, “The operating results achieved in fourth quarter confirm that Titan is making progress toward our goals of profitability. We were pleased that Titan’s orders surged beginning in December 2003, and continuing through first quarter 2004.”
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