Germany’s Continental AG reported its financial results for the first half of 2016 this morning and, thanks to what the tyre maker and automotive systems supplier calls “excellent operating performance” within its Rubber Group, has raised its earnings forecast for the current fiscal year.
Italy’s Pirelli & C. SpA has announced net sales of €3.0 billion during the six months to 30 June 2016. This is 6.6 per cent lower than the net sales achieved by the Pirelli Group in the first half of last year, yet the company says the result represents a year-on-year organic growth of 5.9 per cent (with the same perimeter and net of an 8.8 per cent negative foreign exchange effect). Sales within Pirelli’s Consumer business (car, light commercial and motorcycle tyres) amounted to €2.5 billion, including €1.6 billion of premium products, while Industrial business sales totaled €497.3 million.
Leading Italian brake manufacturer, Brembo has reported revenues of 1,146.8 million euros, up 10 per cent compared with the first half of 2015 (+12.2 per cent on a like-for-like exchange rate basis). During the same period, pre-tax profits (EBIT) grew +42.9 per cent to 173.3 million euros.
While unit volumes of tyres produced by Goodyear Tire & Rubber grew two per cent year-on-year in the second quarter of 2016, net sales for the three-month period were, at US$3.8 billion, down 7.0 per cent on a year earlier. The company nevertheless reported a 5.2 per cent rise in net income to $208 million, thanks largely to a decrease in income tax expense.
Although its net sales declined 2.0 per cent in the first half of 2016, Michelin increased its profitability in the six months to 30 June. Net sales defied a 2.5 per cent rise in volumes and were lower at €10.29 billion, while operating income increased 11.3 per cent to €1.41 billion and the operating margin grew from 12.0 to 13.7 per cent. Net income was up 8.8 per cent year-on-year to €769 million.
For Swedish firm Trelleborg AB the second quarter was, according to president and CEO Peter Nilsson, “particularly eventful.” The acquisition of Mitas parent company CGS was finalised during the three months to 30 June 2016 and the operations consolidated into Trelleborg’s financial statements for the month of June. “The integration of CGS into our existing operations has begun and is progressing well,” comments Nilsson. The company also “devoted considerable time during the quarter” to complete the sale of its holding in Vibracoustic to partner Freudenberg.
At this year’s Annual Stockholders’ Meeting, specialty chemicals company, the Board of Management at Lanxess AG proposed a dividend of €0.60 for the 2015 fiscal year. This is approximately 20 per cent higher than the dividend paid a year earlier and equals a total dividend payout of some €55 million.
India’s JK Tyre & Industries Ltd. has reported a consolidated net profit of Rs 4.64 billion (£47.7 million) for the financial year ending 31 March 2016, a 41 per cent year-on-year rise over the previous fiscal. Consolidated turnover amounted to Rs 76.54 billion (£786.9 million). On a standalone basis, JK Tyre achieved turnover of Rs 65.80 billion (£676.5 million), a year-on-year increase of 58 per cent. In light of this improved performance, the company’s Board of Directors has recommended a dividend of 125 per cent on JK Tyre’s equity shares, pending approval at the tyre maker’s Annual General Meeting.
Despite organic growth of 5.1 per cent, revenues at Pirelli & C. S.p.A decreased 8.4 per cent year-on-year to €1.4 billion in the first three months of this year. Excluding the company’s Pirelli de Venezuela operation, which was deconsolidated at the end of 2015, revenues were down 4.2 per cent. This decline was driven by a 15.3 per cent year-on-year (this and the following figures, excluding net income, reflect Pirelli’s Q1 2015 performance minus its Venezuela business) drop in revenues within Pirelli’s Industrial business, which achieved revenues of €269.4 million in the opening quarter of 2016. Revenues within the company’s Consumer business amounted to €1.2 billion, 1.0 per cent less than the company recorded a year earlier.
A number of factors led to sales and income declining at Yokohama Rubber Co., Ltd. in the first quarter of 2016. The Japanese manufacturer reports that decreased vehicle production in Japan, lower global tyre prices and yen appreciation more than offset the benefit brought by cheaper raw materials. This was reflected in a 6.8 per cent year-on-year drop in net sales, which amounted to ¥129.3 billion (£822.4 million) in the three months to 31 March 2016. Sales within Yokohama Rubber’s tyre segment fell 6.9 per cent to ¥100.8 billion (£641.0 million).
Following what it says was “a good first quarter,” specialty chemicals company Lanxess has raised its earnings forecast for fiscal 2016. The company now expects to achieve EBITDA pre-exceptionals between €900 million and €950 million, as opposed to previously assumed figure of €880 million to €930 million.
Lower unit sales and unfavourable currency effects dragged down Bridgestone Corporation’s sales and income in the first quarter of 2016, the company reports. Net sales dropped eight per cent year-on-year to ¥825.7 billion (£5.3 billion), while operating income was seven per cent lower at ¥108.4 billion (£689.9 million). Ordinary income fell 11 per cent to ¥103.4 billion (£658.1 million) and profit attributable to ‘owners of parent’ was, at ¥56.7 billion (£360.9 million), down 21 per cent.
On the occasion of publishing its full-year 2015/2016 financials, Apollo Tyres has reported sales of 117 billion rupees (£1.214 billion; 1.537 billion euros; US$1.757 billion) compared with 127.256 billion rupees in 2014/2015. During the same period (2015/2016) operating profit grew 3 per cent to close at 20.4 billion rupees, up from 19.8 billion rupees. Net profit increased 12 per cent to 10.9 billion from 9.8 billion rupees the year before.
Although Nokian Tyres’ net sales decreased 1.9 per cent year-on-year to €275.8 million in the first quarter of 2016, the Finnish company increased its operating profit by 4.6 per cent to €50.5 per cent and nudged its operating margin up from 17.2 per cent to 18.3 per cent. Net profit for the January to March quarter amounted to €39.9 million, 70.5 per cent lower than the result recorded a year earlier; the reason for this was the return of €100.3 million worth of taxes and interest for 2007 to 2010 to the company’s books in the first quarter of 2015. Excluding this one-off event, profit rose 13.8 per cent year-on-year. Earnings per share amounted to €0.30 during the quarter.
India’s MRF Ltd has posted net profit of Rs 3.76 billion (£39.1 million) for the quarter ended 31 March 31, 2016, up 7.6 per cent year-on-year. Total income increased 3.7 per cent to Rs 34.56 billion (£359.2 million).
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