Hankook Tire reports sales revenues of KRW 1.657 trillion for the third quarter of 2016, 3.9 per cent lower than in the corresponding quarter a year ago, and operating profit of KRW 297.1 billion. Operating profit increased 22.9 per cent compared to the same period of 2015.
Titan published third quarter 2016 financial shows sales for the third quarter of 2016 were $306.2 million, down 0.9 per cent, compared to $308.8 million in the third quarter of 2015. Gross profit for the third quarter of 2016 was $33.0 million, or 10.8 per cent of net sales, compared to $26.2 million, or 8.5 per cent of net sales, for the third quarter of 2015.
Cooper Tire & Rubber Company has reported a third quarter 2016 net income of US$49 million, or diluted earnings per share of $0.90, compared with $53 million, or $0.93 per share, during the same period of last year. The quarter included a non-cash pension settlement charge of $11.5 million related to lump-sum distribution of benefits offered to certain former employees. Excluding the non-cash pension settlement charge, diluted earnings per share for the third quarter would have been $1.04.
Sweden’s Trelleborg AB reports that net sales within its Trelleborg Wheel Systems business rose 79 per cent year-on-year in the third quarter of 2016 to SEK 1.86 billion (£179.2 million); the full consolidation of CGS during the quarter contributed to 78 per cent of this growth, with organic sales increasing by just one per cent.
Although unit volumes for Michelin tyres were 1.4 per cent higher in the first nine months of 2016 thanks to strong sales in the passenger car tyre segment, the French manufacturer reports that momentum slowed during the third quarter of the year. Demand for car, light commercial and truck tyres was flat to slightly down in mature markets and mixed in emerging markets. Net sales for the quarter amounted to €5.18 billion, 2.5 per cent lower than a year earlier.
As a result of “the recent combined occurrence of isolated unrelated events” affecting three divisions within its Automotive Group, Continental has reduced its outlook for the 2016 financial year. The three Automotive divisions’ adjusted EBIT for the current year has been lowered by around €480 million, with the Automotive Group’s adjusted EBIT margin decreasing from more than 8.5 per cent to over 6.5 per cent. Continental’s overall adjusted EBIT margin is now expected to be over 10.5 per cent this year, rather than over 11.0 per cent.
The Goodyear Tire & Rubber Company is aiming to achieve US$3 billion in annual segment operating income by 2020. At the same time the company is planning to attain cumulative free cash flow of $4.3-$4.9 billion from 2017 to 2020.
Balkrishna Industries Ltd. (BKT) has reported increased sales and volumes and significantly higher net income in the first quarter of its 2017 financial year. The Indian manufacturer sold 41,456 tonnes of tyres during the three months to 30 June 2016, an amount representing year-on-year growth of 11 per cent. Net sales were up 7.0 per cent to Rs 9.1 billion (£102.2 million). EBITDA jumped 136 per cent to Rs 2.6 billion (£29.2 million), with the margin growing from 12.8 per cent in the corresponding quarter of the previous year to 28.0 per cent in the reporting period. Net profit rose 46.6 per cent to Rs 1.5 billion (£16.7 million).
Organic turnover earned through manufacturing systems produced by the TKH Group’s Industrial Solutions business area, which includes equipment made by VMI Holland BV, contracted 16.2 per cent in the first half of 2016. This decline was due in part to a reduced order intake in 2015 for a range of manufacturing systems equipment, including machinery for the production of car and truck tyres as well as machine operating systems, can washers, test equipment and product handling systems for the medical industry.
Both sales and operating profit were up year-on-year at Hankook Tire in the second quarter of 2016. The tyre maker comments that sales growth was driven by higher sales of UHP tyres in Europe and North America and higher original equipment sales outside of the company’s South Korean home market.
India’s MRF Ltd. has reported stable sales for the three months to 30 June 2016. Net income during the quarter amounted to Rs 34.82 billion (£402.22 million), up from Rs 34.77 a year earlier. Standalone net profit rose 2.3 per cent to Rs 4.91 billion (£56.72 million).
Online tyre retailer Delticom has profited from the same cold weather that held sales back earlier in the year, at least to an extent. Reporting on its financial performance in the second quarter of 2016, the company noted that low temperatures prompted European motorists to delay fitting summer tyres to their vehicles until after Easter, and while the delayed switch to summer tyres helped boost Q2 2016 sales by 22.0 per cent year-on-year to €169.3 million, the company suggests that dealers sold almost five per cent fewer replacement car tyres to consumers during the first half of the year. Sales for the first six months of 2016 were up 9.9 per cent to €275.1 million.
Nokian Tyres has released its second quarter and first half 2016 figures, the numbers are also the first full quarter figures published since Nokian admitted it had been involved in tyre test irregularities in a series of press articles during the first quarter of the year. Forex issues and other problems in the Russian market are no-doubt connected to Nokian’s performance. Indeed, Russian sales declined by almost 30 per cent and mild winter weather is said to have left inventories in Russia and North America (see below for further details on this).
Cooper Tire & Rubber Company has reported second quarter 2016 net income of US$71 million, an 18.3 per cent year-on-year increase on the net income achieved a year ago. Commenting on the tyre maker’s Q2 2016 result, chairman, chief executive officer and president Roy Armes noted that “Cooper closed the first half of 2016 with another outstanding quarter.”
The decline in the market for high horsepower tractors and combines in North America continues, and this ongoing trend has left a sizable dent in Titan International’s second quarter revenues. Sales for the three months to 30 June 2016 amounted to US$330.2 million, 12.2 per cent below sales for the previous year’s corresponding quarter and 44.3 per cent less than sales in the second quarter of 2013, prior to the start of the downturn. Gross profit for the quarter amounted to $45.1 million, 13.7 per cent of net sales, an 11.7 per cent year-on-year reduction and 48.0 per cent below the second quarter 2013 gross profit. The net loss applicable to common shareholders was -$3.8 million, compared with a net income of $9.4 million a year ago and net income of $23.2 million in the corresponding quarter of 2013.
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